PERSPECTIVE MANAGEMENT

Donna J

CONTENTS1. Management - Science or Art2. Evolution of Management3. Importance of Management4. Levels of Management5. Managerial Skills6. Social Responsibility & Ethics ( notes given)7. Functions of Management8. Types of Planning9. Types of Leaderships10.Administration v/s Management11.Management of Change12.Formal & Informal Org (notes given)13. Types of Organisation Structure14. Line & Staff departmentation15. Decentralization of Authority16. Delegation of Authority

17. Human Factors :• McGregors X & Y theory• Maslows Hierarchy• Expectancy theory• Herzberg Motivation• Mc Clelland theory18. Control Process19. Control Techniques20. MIS 3 phase

Definition of Management :• Management : The process of designing and maintaining an environment in which individuals,working together in groups, efficiently accomplish selected aims.

• Management is the art of getting things done through and with the people in formally organized groups.”

_ Koontz H.

• Management is the process of Planning, Organizing, Staffing, Directing and Controlling to accomplish organizational objectives through the coordinated use of human and material resources.

Management - Science or Art• It is an Art for the following reasons :1. Management is Creative2. Based on three factors : intuition, judgement,feeling3. Involves using skills, knowledge and intelligence4. Management is innovative

• It is also Science :1. Scientific methods for decision making2. Universal application of management principles3. Identical results not always available4. Collects information through observation and experiments

Evolution of ManagementFrederick Taylor/Scientific Management :

• Frederick Taylor (1856-1915)– “The Father of Scientific Management”– Maximize worker capacity and profits– PROBLEM: Get employees to work at their maximum

capacity– PRIMARY FOCUS: TASKS

• The systematic study of the relationships between people and tasks to redesign the work for higher efficiency.– Taylor sought to reduce the time a worker spent on

each task by optimizing the way the task was done.

Four Principles to increase efficiency:• Four Principles to increase efficiency:

1. Study the way the job is performed now & determine new ways to do it.

• Gather detailed, time and motion information.• Try different methods to see which is best.

2. Codify the new method into rules.• Teach to all workers.

3. Select workers whose skills match the rules set in Step 2.4. Establish a fair level of performance and pay for higher

performance.• Workers should benefit from higher output.

Problems of Scientific Management• Managers often implemented only the increased output side of

Taylor’s plan.– They did not allow workers to share in increased output.– Specialized jobs became very boring, dull.– Workers ended up distrusting Scientific Management.

• Workers could purposely “under-perform”• Management responded with increased use of machines.

• Elements of Scientific ManagementElements of Scientific Management– Scientific design of every aspect of every task

• Time and Motion Studies– Careful selection and training of every task– Proper remuneration for fast and high-quality work

• Maximize output - increase pay– Equal division of work and responsibility between worker and manager

Father of Modern Management :• Henri Fayol (1841-1925)Henri Fayol (1841-1925)

– General and Industrial Management– Principles and Elements of Management - – how managers should accomplish their managerial duties– PRIMARY FOCUS: Management

(Functions of Administration)– More Respect for Worker than Taylor

• Workers are motivated by more than money• Equity in worker treatment

• Keep machine functioning effectively and efficientlyKeep machine functioning effectively and efficiently• Replace quickly and efficiently any part or process that did not contribute to Replace quickly and efficiently any part or process that did not contribute to

the objectivesthe objectives

Fourteen Principles of Fourteen Principles of Management Management (Tools for Accomplishing (Tools for Accomplishing Objectives)Objectives)

– Division of work - limited set of tasks– Authority and Responsibility - right to give orders– Discipline - agreements and sanctions– Unity of Command - only one supervisor– Unity of Direction - one manager per set of activities– Subordination of Individual Interest to General Interest– Remuneration of Personnel - fair price for services– Centralization - reduce importance of subordinate’s role– Scalar Chain - Fayol’s bridge– Order - effective and efficient operations– Equity - kindliness and justice– Stability of Tenure of Personnel - sufficient time for familiarity– Initiative - managers should rely on workers’ initiative– Esprit de corps - “union is strength” “loyal members”

Note : learn any 10 points and explain

Elton Mayo / Human Relations Approach• Elton MAyo and his associates conducted Hawthorne studies.

Some of the findings are: Employees behaviour is influenced by mental attitudes Workers in a group develop a common psychological bond uniting

them Social motivation plays a big role Typical group behaviour can dominate individual preferences.

Contributions : Managers should consider employees as individuals Group dynamics wasemphasised for the first time to improve organisational

performance Concept of "social man" "Suggestion Boxes" were used first time

Importance of Management1. Optimum use of resources2. Comprtitive Strength3. Cordial industrial relations4. Motivates Employees5. Expansion of Business6. Team Spirit7. Stability and Prosperity8. Effective use of managers9. Smooth functioning10.Reduce turnover and absenteeism

Levels of Management

Managerial Skills

• There are three skill sets which every manager should posses : Conceptual Skills : the ability to analyze and diagnose a situation

and find the cause and effect. Humann Skills : the ability to understand, alter, lead, and control

people's behaviour. Technical Skills : the job specific knowledge required to perform a

task . eg. marketing, accounting..etc :

Note : Elaborate more on the points.

Social ethics / CSR

PLs learn from the notes I have given.

Functions of Management

Managers

Planningactivities toachieve theorganization'sobjectives

Organizingresources andactivities toachieve theorganization’sobjectives

Staffingtheorganizationwith qualifiedpeople

Directingemployees’activitiestowardachievementof objectives

Controllingtheorganization’sactivitiesto keep iton course

Types of Planning A systematic process of reaching a desired state by establishing goals and

formulating strategies to achieve them.

Types of planning are :1. On the basis of Nature:• Formal • Informal2. On the basis of Time:• Short term• Long term3. On the basis of Levels of management:• Top level• Middle Level• Front line4. On the basis of Use:

4. On the basis of Use: Single Use : Is a plan which sets course of action for a particular set of circumstances and

is used up once the particular goal is achieved. They may include programmes, budgets, projects, and schedules. This plan is prepared by lower- level management. These plans are also called as ‘specific planning’.

Standing Planning : Are designed to be used over and over again. Permanent nature and are

meant for repeated use. Objectives, policies, procedures, methods, rules and strategies are included

in this type of plans. Helps the higher executives to reduce their work load. It is also called as

Routine planning These plans are prepared by Top-level management.

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Types of Leaderships• Leadership Style : A pattern of behaviour designed to integrate organisational and

personal interest in pursuit of some objectives.

Autocratic Leader Democratic Leader Free rein/ Laissez-faire Leader Functional / Intellectual Leader Bureaucratic Leader Paternal Leader

Note : Pls elaborate

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Administration v/s Management

Points of Distinction Adminstration ManagementNature It is a determinative or

thinking functionIt is an executive or doing function

Type of Work Concerned with determination of major objectives and policies

Concerned with the implementation of policies

Level of Authority Top level function Middle & Lower level function

Main functions Planning & Control are main functions involved

Directing & Organizing are main functions

Skills Required Conceptual & Human Skills Technical & Human Skills

Usage Used largely in govt & public sector

Used mainly in business organization

Illustration Minister, Commander, Registrar, Governor

Managing Director, General manager, Sales manager

Management of Change• In large scale organizations, change seldom occur without a bit of chaos.

Change becomes orderly when it is planned and implemented in a systematic way. The process has the following steps :

1. Identify the need for change : the manager should identify the forces demanding change. Those forces may be internal or external. Internal forces include : employee turnover, change related role conflicts, mounting problems from its growing size, introduction of new department due to expansion in sales, production. External sources include technological changes, new marketing strategies etc

2. Diagnose the problem : This step involves the identification of the root cause. Several techniques are used for diagnosis eg. Interviews, attitude survey, team meetings etc. Organizational analysis includes exhaustive study of organizational goals, principles, practices and performance at a macro level.

3. Plan the change : this is a critical step in the management of change. It involves answering three important questions When to bring the changeHow to bring the change Who will introduce the changeWhile introducing change, reactions from people must be carefully assesses. People affected by change must be consulted, the likely impact should be explained, sufficient time to pick up new skills should be given with rewards.4. Implement the change : while implementing any change programme, managers encounter three programmes:

Problems Implication Action Steps

Resistance Need to motivate Invite participationOffer rewards

Control Need to manage the transition

Build in feedback machines

Power Need to shape the political domain

Support of key groupsUse symbols.

Formal and Informal OrganisationOrganisation : A formalized intentional structure of roles or position.Importance of Organisation : • Optimal utilisation of human resources• Facilitates coordination• Facilitates division of work• Facilitates growth expansion• Stimulates Creativity• Determines individual responsibilityNote : You have to elaborate on the points.

Formal Org : the intentional structure of roles in a formally organized enterprise.

( refer text ) Informal Org : A network of interpersonal relationships that arise when

people associate with one another.( refer text )

Types of Organisation Structure

Departmentation : Is the grouping of jobs, processes and resources into logical units to perform some organisational task.

1. Departmentation By Territory

Note : Study with advantages & disadv. Diagrams

Departmentation By Enterprise Functions

Note : Study with advantages & disadv. Diagrams

3. Departmentation by Customer Group :

4. Matrix Organisation :

5. Strategic Business Units :

Line & Staff Organisation❖ Line Organisation / Authority : The relationship in which a superior exercises

direct supervision over a subordinate.1. Downward flow of information2. Complete authority in the area of their operations3. Unity of command4. Equal status5. No confusion 6. Present in all organisations

Staff Organisation / Authority : The elements which have responsibility and authority for providing advice and service to the line in attainment of objectives.

• Referred as experts and act as thinkers• Provides Guidance to line executives• Exercises control over subordinates• Is suitable for large scale business

Note : elaborate on the points

Decentralization of Authority

Decentralization : ● The tendency to disperse decision making authority in an

organized structure.● Suitable in large enterprises● Decisions are made at all levels . Hence communication gap● Scope for self, executive & management development● High motivation and morale● Burden on the top executives is limited as work is distributed at

lower levels

When is it necessary ? It facilitates the process of delegation of authority Is a progressive conceptIt is necessary along with expansion of a business enterprisenecessary in order to introduce democratic spirit in an organisation

Delegation of Authority

1. Delegation : Means assigning of certain responsibilities along with the necessary authority by a superior to his subordinate managers.

2. Process of delegation : ( refer text ) 3. Personal attitudes towards delegation:a. Willingness to let gob. Willingness allows mistakes by subordinatesc. Willingness to trust subordinatesd. Willingness to establish and use broad control4. Overcoming weak delegation : a. Define assignmentsb. Select the personc. maintain open lines of communicationd. Proper controls

Note : This answer is given properly in the text

Maslow’s HierarchyNote : Explain each levels in the maslow’s hierarchy.

Mcgregor’s theory X & Y● Douglas Mc Gregor - He treatedtraditional approach to manag as‘ Theory X’ and the professional approach to manag as ‘Theory Y’.

This theory is the perceptionsmanagers hold on their employees,not the way they generally behave.

Expectancy theory Expectancy Theory is based on an employee’s beliefs:

Valence - refers to emotional orientations which people hold with respect to outcomes (rewards) – the value the person attaches to first and second order outcomes

Expectancy – refers to employees’ different expectations and levels of confidence about what they are capable of doing – the belief that effort will lead to first order outcomes

Instrumentality – refers to the perception of employees whether they will actually receive what they desire, even if it has been promised by a manager – the perceived link between first order and second order outcomes

Note : pls refer text for more information...and MARKS!!!

Herzberg-Hygiene/ Two Factor Theory

● The two-factor theory (also known as Herzberg's motivation-hygiene theory and dual-factor theory) states that there are certain factors in the workplace that cause job satisfaction, while a separate set of factors cause dissatisfaction.

● Two-factor theory distinguishes between:

Motivators (e.g. challenging work, recognition, responsibility) that give positive satisfaction, arising from intrinsic conditions of the job itself, such as recognition, achievement, or personal growth

Hygiene factors (e.g. status, job security, salary, fringe benefits, work conditions) that do not give positive satisfaction, though dissatisfaction results from their absence. These are extrinsic to the work itself, and include aspects such as company policies, supervisory practices, or wages/salary.

Herzberg analysed the job attitudes of 200 accountants and engineers who were asked to recall when they had felt positive or negative at work and the reasons why.

Hygiene FactorsHygiene factors are based on the need to for a business to avoid unpleasantness at work. If these factors are considered inadequate by employees, then they can cause dissatisfaction with work. Hygiene factors include:- Company policy and administration- Wages, salaries and other financial remuneration- Quality of supervision- Quality of inter-personal relations- Working conditions- Feelings of job security

Motivator FactorsMotivator factors are based on an individual's need for personal growth. When

they exist, motivator factors actively create job satisfaction. If they are effective, then they can motivate an individual to achieve above-average performance and effort. Motivator factors include:

- Status- Opportunity for advancement- Gaining recognition- Responsibility- Challenging / stimulating work- Sense of personal achievement & personal growth in a jobThere is some similarity between Herzberg's and Maslow's models. They both

suggest that needs have to be satisfied for the employee to be motivated. However, Herzberg argues that only the higher levels of the Maslow Hierarchy (e.g. self-actualisation, esteem needs) act as a motivator. The remaining needs can only cause dissatisfaction if not addressed.

Applying Hertzberg's model to de-motivated workers

What might the evidence of de-motivated employees be in a business?- Low productivity- Poor production or service quality- Strikes / industrial disputes / breakdowns in employee communication and relationships- Complaints about pay and working conditionsAccording to Herzberg, management should focus on rearranging work so that motivator

factors can take effect. He suggested three ways in which this could be done:

● Job enlargement : (sometimes also referred to as “horizontal loading”) involves the addition of extra, similar, tasks to a job.In job enlargement, the job itself remains essentially unchanged. However, by widening the range of tasks that need to be performed, hopefully the employee will experience less repetition and monotony that are common on production lines which rely upon the division of labour.

Job rotation : involves the movement of employees through a range of jobs in order to increase interest and motivation.Job rotation can improve “multi-skilling” but also involves the need for greater training.In a sense, job rotation is similar to job enlargement. This approach widens the activities of a worker by switching him or her around a range of work.

● Job enrichment : is the process of "improving work processes and environments so they are more satisfying for employees".Many jobs are monotonous and unrewarding - particularly in the primary and secondary production industries. Workers can feel dissatisfied in their position due to a lack of a challenge, repetitive procedures, or an over-controlled authority structure.

Mc Clelland theory

Note : Answer is given in the text book.

BASIC CONTROL PROCESS

Controlling : The measurement and correction of performance in order to make sure that enterprise objectives and the plans devised to attain them are being accomplished.

The basic control process involves : Establishment of Standards

Measurement of Performance

Correction of Deviations

Control Techniques

1. Direct Supervision and Observation : Is the oldest technique of controlling. The supervisor himself observes the employees and their work. This brings him in direct contact with the workers. So, many problems are solved during supervision. The supervisor gets first hand information, and he has better understanding with the workers. This technique is most suitable for a small-sized business.

2. Financial Statements : All business organisations prepare Profit and Loss Account. It gives a summary of the income and expenses for a specified period. They also prepare Balance Sheet, which shows the financial position of the organisation at the end of the specified period. Financial statements are used to control the organisation. The figures of the current year can be compared with the previous year's figures. They can also be compared with the figures of other similar organisations.

3. Budgetary Control : A budget is a planning and controlling device. Budgetary control is a technique of managerial control through budgets. It is the essence of financial control. Budgetary control is done for all aspects of a business such as income, expenditure, production, capital and revenue. Budgetary control is done by the budget committee.

4. Break Even Analysis : Break Even Analysis or Break Even Point is the point of no profit, no loss. For e.g. When an organisation sells 50K cars it will break even. It means that, any sale below this point will cause losses and any sale above this point will earn profits. The Break-even analysis acts as a control device. It helps to find out the company's performance. So the company can take collective action to improve its performance in the future. Break-even analysis is a simple control tool.

5. Return on Investment (ROI) : Investment consists of fixed assets and working capital used in business. Profit on the investment is a reward for risk taking. If the ROI is high then the financial performance of a business is good and vice-versa.

ROI is a tool to improve financial performance. It helps the business to compare its present performance with that of previous years' performance. It helps to conduct inter-firm comparisons. It also shows the areas where corrective actions are needed.

6. Management by Objectives (MBO) : It must fulfill following requirements :-Objectives for individuals are jointly fixed by the superior and the subordinate.Periodic evaluation and regular feedback to evaluate individual performance.Achievement of objectives brings rewards to individuals.

7. Management Audit : Audit is an evaluation of the management as a whole. It critically examines the full management process, i.e. planning, organising, directing, and controlling. It finds out the efficiency of the management. To check the efficiency of the management, the company's plans, objectives, policies, procedures, personnel relations and systems of control are examined very carefully. Management auditing is conducted by a team of experts. They collect data from past records, members of management, clients and employees. The data is analysed and conclusions are drawn about managerial performance and efficiency.

8. Management Information System (MIS) : In order to control the organisation properly the management needs accurate information. They need information about the internal working of the organisation and also about the external environment. Information is collected continuously to identify problems and find out solutions. MIS collects data, processes it and provides it to the managers. MIS may be manual or computerised. With MIS, managers can delegate authority to subordinates without losing control.

9. PERT and CPM Techniques : Programme Evaluation and Review Technique (PERT) and Critical Path Method (CPM) techniques were developed in USA in the late 50's. Any programme consists of various activities and sub-activities. Successful completion of any activity depends upon doing the work in a given sequence and in a given time.Importance is given to identifying the critical activities. Critical activities are those which have to be completed on time otherwise the full project will be delayed.

So, in these techniques, the job is divided into various activities / sub-activities. From these activities, the critical activities are identified. More importance is given to completion of these critical activities. So, by controlling the time of the critical activities, the total time and cost of the job are minimised.

MIS 3 PHASE

• To the managers, Management Information System is an implementation of the organizational systems and procedures. To a programmer it is nothing but file structures and file processing. However, it involves much more complexity.

• The three components in MIS gives a more complete and focused definition, where System suggests integration and holistic view, Information stands for processed data and Management is the ultimate user, the decision makers.

• Management:Management covers the planning, control, and administration of the operations

of a concern. The top management handles planning; the middle management concentrates on controlling; and the lower management is concerned with actual administration.

• Information:Information, in MIS, means the processed data that helps the management in

planning, controlling and operations. Data means all the facts arising out of the operations of the concern. Data is processed i.e. recorded, summarized, compared and finally presented to the management in the form of MIS report.

• System:Data is processed into information with the help of a system. A system is made

up of inputs, processing, output and feedback or control.Thus MIS means a system for processing data in order to give proper

information to the management for performing its functions.

Following are the basic objectives of an MIS:•Capturing Data: capturing contextual data, or operational information that will contribute in decision making from various internal and external sources of organization•Processing Data: the captured data is processed into information needed for planning, organizing, coordinating, directing and controlling functionalities at strategic, tactical and operational level. Processing data means:

– making calculations with the data– sorting data– classifying data and– summarizing data

•Information Storage: information or processed data need to be stored for future use.•Information Retrieval: the system should be able to retrieve this information from the storage as and when required by various users.•Information Propagation: information or the finished product of the MIS should be circulated to its users periodically using the organizational network.

Characteristics of MISFollowing are the characteristics of an MIS:•It should be based on a long-term planning.•It should provide a holistic view of the dynamics and structure of the organization.•It should work as a complete and comprehensive system covering all interconnecting sub-systems within the organization.•It should be planned in a top-down way, as the decision makers or the management should actively take part and provide clear direction at the development stage of the MIS.•It should be based on need of strategic, operational and tactical information of managers of an organization.•It should also take care of exceptional situations by reporting such situations.•It should be able to make forecasts and estimates, and generate advanced information, thus providing a competitive advantage. Decision makers can take actions on the basis of such predictions.•It should create linkage between all sub-systems within the organization, so that the decision makers can take the right decision based on integrated view.

My dear students…hope these materials should do the trick. Learn well . Case study , videos and ppt…that’s all from where the questions will be asked k…MAKE ME PROUD!!