Naveen Prakash Noronha

Asst. Prof Mechanical Engineering RVCE

Management

Is it a Management?

Is it a Management?

Management

Introduction to Management
Management is the process of planning, organizing, leading, and controlling the work of organization members and of using all available organizational resources to reach stated organizational goals.

What is an organization?

Two or more people who work together in a structured way to achieve a specific goal or set of goals

What is Goal?
The purpose that an organization strives to achieve; organizations often have more than one goal; goals are fundamental elements of organization

Who is a Manager?
Person responsible for directing the efforts aimed at helping organizations achieve their goals.

What is the need of an Organization

a. Living in the present present standard of living, food, shelter, medical clothing etc. b. Building the future future of individuals, organizations, impact on future( good or bad) c. Remembering the past memories of school, colleges, company etc.

What is a process?

A process is a systematic way of doing things. Management is the process of planning, organizing, leading, and controlling the efforts of organization members and of using all other organizational resources to achieve stated organizational goals.

Planning
The process of establishing goals and a suitable course of action for achieving those goals. 1. Organization obtain and commits the resources 2. Members of the organization carry on activities 3. Progress is monitored to take corrective action

Organizing

Organizing is the process of arranging and allocating work, authority, and resources among an organizations members so they can achieve the organizations goals.
a. Structured assembly line b. Teams

Leading

Leading is the process of directing and influencing the task related activities of group members or an entire organization.
i. Directing ii. Influencing iii. Motivating

relationship and time

Controlling

Controlling is the process of ensuring that actual activities conform to planned activities. Four main elements
1. Establishing standards of performance. 2. Measuring current performance. 3. Comparing current performance with established standards. 4. Taking corrective actions if needed.

Nature of management process

Demings 14 Principles
Dr. William Edwards Deming is known as the father of the Japanese post-war industrial revival and was regarded by many as the leading quality guru in the United States. Deming created 14 Principles for Management that summarized his business philosophy. The principles became a basis for transformation of industry. The 14 principles apply anywhere, from small organizations to large ones, to the service industry as well as to manufacturing. They apply to any division within a company.

Demings 14 Principles
1. Create Constancy of Purpose Towards Improvement 2. Adopt the New Philosophy 3. Cease Dependence on Inspection 4. Move Towards a Single Supplier for any One Item 5. Improve Constantly and Forever 6. Institute Training

Demings 14 Principles
7. Institute Leadership 8. Drive Out Fear 9. Break Down Barriers Between Departments 10. Eliminate Slogans 11. Eliminate Management by Objectives 12. Remove Barriers to Pride of Workmanship 13. Institute Education and Selfimprovement 14. The Transformation is Everyones Job

Management Levels
1. First line managers managers who are responsible for the work of operating employees only and do not supervise other managers. 2. Middle Managers They are responsible for other managers and sometimes for some operating employees; they also report to senior managers.

Management Levels
3.

Top managers Managers responsible for the overall management of the organization; they establish operating policies and guide the organizations interaction with its environment.

Types of Managers
1. Functional Managers A manager responsible for just one organizational activity such as finance or human resources management. 2. General Managers The individual responsible for all functional activities, such as production, sales, marketing, and finance, for an organization such as a company or subsidiary.

Types of management skills

1. Technical skill The ability use the procedures, techniques, and knowledge of a specialized field. 2. Human skill The ability to work with, understand, and motivate other people as individuals or in groups.

Types of management skills

3.Conceptual skill The ability to coordinate and integrate all of an organizations interests and activities.

The challenge of Management

It is time and place specific It changes with changing conditions

Ethics in Management
The study of who is-and should bebenefitted or harmed by an action is called ethics. It deals with both conflict and opportunity in human relationships Ethics provides the glue that holds our relationship, and the larger society together.

The cultural diversity

Women workforce Minorities Beliefs

The Evolution of Management Theory

What is a Theory?
Theory is a coherent group of assumptions put forth to explain the relationship between two or more observable facts and to provide a sound basis for predicting future events.

Why study management theory?

Theories provide a stable focus for understanding what we experience. Theory provides criteria for determining what is relevant Theories unable us to communicate efficiently and thus move into more and more complex relationship with other people. Theories make it possible-indeed, challenge us-to keep learning about our world.

Approaches to Management
Ancient Civilisation (PreScientific) Sumerian, Egyptian, Roman, Adam Smith Classical Approach (Scientific) Taylor, Gantt, the Gilbreths, Weber, Fayol Behavioural Approach Maslow, Munterberg, Mayo, Follett, McGregor,

Bernard, Owen Quantitative/Management Science Approach Statistical, mathematical, optimization Contemporary Approach Contingency/Situational Theorists Systems Theorists

Management Theories

Scientific Management (1910-1935)

Frederick Taylor Henry Gannt Frank and Lillian Gilbreth Luther Gulick III Max Weber Henri Fayol

Scientific Management

The process of approaching various aspects of organizations in a scientific manner using scientific tools such as research, management, and analysis.

Scientific Management Theorists

PURISTS Frederick Taylor Henry Gannt Frank and Lillian Gilbreth TRANSITIONALISTS Luther Gulick Max Weber Henry Fayol

History of the Era

-

Industrial Age Migration to cities Reliance on electricity and gasoline Changes both on the farm and in factories Autos, airplanes, movies, and radio became common

Prior to Scientific Management

Owner, manager, sales, and front office personnel had little direct contact with production activity. A superintendent was responsible for all planning and staff functions. Worked with journeyman mechanics to try to schedule production. No recognized staff functions. Work methods were determined by individual mechanics based on personal experience, preference, and what tools were available for the job. Rule of Thumb

Frederick Taylor

Efficiency Expert in U.S. Steel Industry Invented New Tool Designs and Handling Methods Designed Stop-Watch Task Timing Created Piece-Rate Payment Scheme Developed Industrial Departments

Four principles of F. W. Taylor

1. 2. 3. 4.

The development of a true science of management The scientific selection of workers The scientific education and development of worker Intimate, friendly cooperation between management and labor

Time Studies and the Piece-Rate System

Studied most efficient worker Used stop-watch timing to measure each production step Eliminated any unnecessary movements Designed standardized instruction cards for employees Employees paid for meeting the established rate of production

The scientific management school

Taylor contended that the success of these principles required a complete mental revolution on the part of management and labor. Rather than quarrel over profits both side should increase production ,by so doing ,he believed profits would rise to such an extend that labor have to fight over them. In short Taylor believed that management and labor had common interest in increasing productivity.

The scientific management school

Employers to pay more productive workers higher rate than others. using a scientifically correct rate that would benefit both the company and workers. Thus the workers were urged to surpass their previous performance standards to earn more pay .Taylor called his plane the differential rate system. Moreover,Taylors system clearly meant that time was of the essence His critics objected to the speed up condition that placed undue pressure on employees to perform at faster and faster levels.

The scientific management school

Taylor based his management system on production line time studies. instead of relying on traditional work methods, he analyzed and timed steel workers movements on a series of jobs. Using time study he broke each job down into its components and designed the quickest and best method of performing each components. In this way he established.

The scientific management school

The emphasis on productivity and by extension profitability led some managers to exploit both the workers and customers. As a result more workers joined unions and thus reinforced a pattern of suspicious and mistrust that shaded labor relations for decades.

Contributions of scientific management theory

The modern assembly line pours out finished products faster than Taylor could ever imagined. This production Miracle is just one legacy of scientific management . In addition its efficiency techniques have been applied to many task in non industrial organizations ranging from food service to the training of surgeons.

Limitations of scientific management theory

Although Taylor's method led to dramatic increase in productivity and higher pay in number of instance . Workers and unions began to oppose his approach because they feared that working harder or faster would exhaust whatever work was available Causing layoffs. The emphasis on productivity and by extension profitability led some managers to exploit both the workers and customers.

Limitations of scientific management theory

As a result more workers joined unions and thus reinforced a pattern of suspicious and mistrust that shaded labor relations for decades.

Henry L. Gantt ( Scientific management school)

Henry Laurence Gantt, A.B., M.E. (1861-23 November 1919) was a mechanical engineer and management consultant who is most famous for developing the Gantt chart in the 1910s. These Gantt charts were employed on major infrastructure projects including the Hoover Dam and Interstate highway system and still are an important tool in project management.

Henry Gantt's contributions

The Gantt chart: Still accepted as an important management tool today, it provides a graphic schedule for the planning and controlling of work, and recording progress towards stages of a project. The chart has a modern variation, Program Evaluation and Review Technique (PERT).

Henry Gantt's contributions

Industrial Efficiency: Industrial efficiency can only be produced by the application of scientific analysis to all aspects of the work in progress. The industrial management role is to improve the system by eliminating chance and accidents. The Task And Bonus System: He linked the bonus paid to managers to how well they taught their employees to improve performance. The social responsibility of business: He believed that businesses have obligations to the welfare of society that they operate in

The Gilbreths
Frank and Lillian Gilbreth made contribution To scientific management movement as Husband and Wife Gilbreths Main Goals in Working with Companies: Increase efficiency by removing unnecessary movements(using motion picture cameras) Reduce fatigue for employees Help the workers reach their full potential

Gilbeths Methods of Analyzing Data

Therbligs
System developed to analyze the basic movements of the body. Simo chart (Simultaneous motion chart)

CLASSICAL ORGANIZATION THEORY SCHOOL

Scientific management was concerned with increasing the productivity of the shop and the individual worker. Classical organization theory grew out of the need to find guidelines for managing such complex organization as factories.

HENRI FAYOL
Henri Fayol (1841-1925) is generally hailed as the founder of the classical management school Not because he was the first to investigate managerial behaviour but because he was the first to systematize it.

FOURTEEN PRINCIPLES OF HENRI FAYOL

1. DIVISION OF LABOR The most people specialize the more efficiency they can perform their work. This principle is epitomized by the modern assembly line. 2. AUTHORITY Managers must give orders so that they can get things done while their formal authority gives them a right to command, managers will not always compel obedience unless they have Personal authority (such as relevant expertise) as well

3. DISCIPLINE Members in an organization need to respect the rules and agreements that govern the organization. Disciplined leadership at all levels of the organization, fair agreements and judiciously enforced penalties for infractions.

4. UNITY OF COMMAND Each employee must receive instruction from one person, Fayol believed that if employee reported more than one manager conflict in instruction and confusion in of authority would result.

5. UNITY OF DIRECTION Those operations with in the same organization that have the same objective should be directed by only one manager using one plan. For example the personnel department in the company should not have two directors each with a different hiring policy.

6. SUBORDINATION OF INDIVIDUAL INTERESTS TO GENERAL INTERET In any undertaking the interest of employees should not take the precedence over the interest of the organization as a whole. 7. REMUNERATION: Compensation of work done should be common to both employees and employers.

8. CENTRALIZATION: Decreasing the role of subordinates in decision making is centralization, increasing their role is decentralization. Fayol believed that the managers should retain the final responsibility. But should at the same time give their subordinate enough authority to do the jobs properly. The problem is finding the proper degree of centralization in each case.

9. SCALAR CHAIN The line of authority in an organization should represent in the neat box and the line of chart runs in order of rank from top management and lowest levels of enterprise. 10. ORDER: Materials and the order should be in the right place at the right time. People in particular should be in job or position they are most suited to.

11. EQUITY:

Managers should be fair and friendly to their subordinate.

12. STABILTY OF TENURE 0F PERSONNEL:

A high employee turnover rate undermines the efficient functioning of an organization.

13. INITIATIVE: Subordinate should be given the freedom to conceive and carry out their plans even though some mistake may result. 14. ESPRIT DE CORPS: Promoting team spirit will give the organization a sense of unity. To Fayol even the small factor helps to develop the spirit. He suggested for example the use of verbal communication instead of formal, written communication whenever possible

Max Weber

Max Weber a German Sociologist developed a theory of bureaucratic management that stressed the need for a strictly defined hierarchy governed by clearly defined regulations and lines of authority. He considered the ideal organization to a bureaucracy whose activities and objectives were rationally thought out and whose division of labor were explicitly spelled out

He emphasizes on technical competence and performance evaluation on the basis of merit.

Mary Parker Follett worked in the area of Human relations and Organizational structures. She proposed a new thinking in the management no one could become a whole person except as a member of a group; human beings grew through their relationships with others in organisations

She called the management the art of getting things done through people She noted that the artificial distinction between managers and subordinates obscured the natural relationship. She strongly believed in the power of group, where individuals could combine their diverse talents into something bigger. Her approach of management was holistic which involved the influence of politics economics, and biology on groups and people in general.

Follett paved the way for management theory to include a broader set of relationships, some inside the organization and some across the organizations borders.

Chester I. Barnard
According to Barnard: people come together in formal organizations to achieve ends they cannot accomplish working alone. Individual and organizational purpose could be kept in balance if managers understood an employees zone of indifference. (Inclinations conditioning individuals to accept orders that fall within a familiar range of responsibility or activity. )

Executives have a duty to instill a sense of moral purpose in their employees. the organization is cooperative enterprise of individuals working together as groups

The Behavioral School: The Organization is People

The behavioral school emerged partly because the classical approach did not achieve sufficient production efficiency and workplace harmony. People did not always followed the predicted or expected patterns of behavior. There was a need to deal more effectively with the people side of their organizations.

The Human relations movement

This movement dealt with employee management. It highlighted the relationship between human relations and work efficiency in an organization. This movement arose from early attempts to systematically discover the social and psychological factors that would create effective human relations.

The Human relations movement

THE HAWTHORNE EXPERIMENTS The human relations movement grew out of a famous series of studies conducted from 1927 to 1933 by Harvard Business School Professor Elton Mayo at the Western Electric. These eventually became known as the Hawthorne Studies because the Western Electric Company was located at Hawthorne near Chicago.

A View of Hawthorne Works, 1925

THE HAWTHORNE EXPERIMENTS Illumination Studies

Researchers divided the employees into test groups, who were subjected to deliberate changes in lighting, and control groups whose lighting remained constant throughout the experiments.

The results of the experiments were ambiguous. When the test groups lighting was improved, productivity tended to increase. But when lighting conditions were made worse, there was also a tendency for productivity to increase in the test group. To compound this mystery, the control groups output also rose over the course of studies, even though it experienced no changes in illumination. Something besides lighting was influencing the workers performance.

THE HAWTHORNE EXPERIMENTS Relay Assembly Test Room A small group of female workers was placed in a separate room and a number of variables were altered. A series of experiments in which the output of the workers was observed to increase as a result of improved treatment by their managers. Named for their site, at the Western Electric Company plant in Hawthorne, Illinois, Chicago.

Women in the Relay Assembly Test Room, 1930

What can a manager do to improve productivity? Purpose of study was to examine what effect monotony and fatigue had on productivity and how to control them with variables such as rest breaks, work hours, temperature, and humidity. Under normal conditions, the work week was 48 hours, including Saturdays. There were no rest pauses.

Experiment One The workers were put on piece-work for eight weeks. Output went up. Experiment Two The workers were given two rest pauses, five minutes each, in the morning and afternoon for a period of five weeks. Output went up again.

Experiment Three The rest pauses were increased to ten minutes each. Output went up sharply. Experiment Four The workers were given six five minute breaks. Output fell slightly. The workers complained that the work rhythm was broken by frequent pauses.

Experiment Five The two original rest pauses were put back in place, and the workers were given a free hot meal by the company. Output went up. Experiment Six The workers were dismissed at 4:30 p.m. instead of 5:00 p.m. Output went up.

Experiment Seven The workers were dismissed at 4:00 p.m. Output remained the same. Experiment Eight All improvements were taken away and the workers returned to their original working conditions. Output was the highest ever recorded!

Explanation of Findings
The employees would work harder if they believed management was concerned about their welfare and supervisors paid special attention to them. This phenomenon was subsequently labeled as Hawthorne effect The group developed an increased sense of responsibility and discipline no longer needed to come from a higher authority, it came from within the group.

Informal work groups, the social environment of employees have a positive influence on productivity. Group pressure was frequently a stronger influence on worker productivity than management demands.

Real World Example

Workers improve their productivity when they believe management is concerned with their welfare and pay particular attention to them. Productivity can also be explained by paying attention to the workers social environment and informal groupings.

The Management science school

During World War II the allies faced many complex problems and to overcome these problems operational research teams were set up, consisting of mathematicians, physicists and other scientists, who pooled their knowledge to solve problems. After the war, their ideas were applied to industrial problems which were previously unsuccessfully solved by conventional means. With the aid of the electronic computer, these procedures became known as the management science school relying heavily on quantitative methods.

The Management science school

Approaching management problems through the use of mathematical techniques for their modeling, analysis, and solution. The classical or scientific management approach concentrates on the efficiency of the manufacturing process. The management science school places greater weight on the overall planning and decision-making process. Technical efficiency is merely seen as a tool

It relies heavily on the use of computers and mathematical models in planning. It is focused on the evaluation of effectiveness of models like the techniques of the use of models in managerial decision making: the return on investment analysis for example.

Recent developments in Management theory

Assignment 1

The Systems Approach

The systems approach to management views the organization as a unified, purposeful system composed of interrelated parts. This approach gives managers a way of looking at the organization as a whole and as a part of the larger, external environment. Systems theory tells that the activity of any segment of an organization affects, in varying degrees, the activity of every

The flow and feedback in an open system

Subsystem
Those parts making up the whole System Synergy The situation where whole is greater than its parts. In organizational terms, synergy means that departments that interact cooperatively are more productive than they would be if they operated in isolation. Open and closed system An open system interacts with the surroundings and a closed system doesnt.

System boundary The boundary that separates each system from its environment. It is rigid in closed system, flexible in an open system. Flow Components such as information, material, and energy that enter and leave a system. Feedback The part of system control in which the results of actions are returned to the individual, allowing work procedures to be analyzed and corrected.

The Contingency Approach ( Situational Approach)

Contingency approach is of the view that, the management technique that best contributes to the attainment of organizational goals might vary in different types of situations or circumstances. The application of management techniques depends on situation, circumstances, and at a particular time.

Organizational and natural environments

All elements outside an organization that are relevant to its operations; includes direct action and indirect-actionelements. Organizations exchange resources with and are dependent upon the external environment. Organizatio Output

Input n

Direct action elements( stakeholders): - Shareholders, unions, suppliers,

Indirect action elements: technology, economy, and politics of a society

The Direct-Action and IndirectAction Environments of an Organization

Social Variables Competitors customers Technological Variables

Employees Banks sf5ey6dhdhhdh The Organization Unions Shareholders and the Board of directors Economic Variables Media Interest groups

Supplier

Govt.

Political variables

Ethics?

The code of moral principles and values that govern the behaviors of a person or group with respect to what is right or wrong.

Organizational Ethics

Actions an organization takes beyond what is legally required to protect or enhance the well-being of living things

Areas of Responsibility

Ethical Education

ETHICS AND SOCIAL RESPONSIBILITY

ETHICS
Beliefs about right and wrong.

SOCIAL RESPONSIBILITY
The obligation of a business to contribute to society.

A close relationship, but not the same

Levels of Ethical questions in an Organization

Societal Stakeholder Internal policy Personal

Tools of Ethics
Values Rights and duties Moral values Human relationships Morality of care Common morality

Business Ethics
The standards of conduct and moral values governing actions and decisions in the work environment. Social responsibility. Balance between whats right and whats profitable. Often no clear-cut choices. Often shaped by the organizations ethical climate

Self study topics

Globalization and management Management and sustainability

Chapter 2

Planning and Decision Making

Planning is a particular kind of decision making that addresses the specific future that managers desire for their organizations.

Importance of planning at Organizations

Importance of Planning : Managers cant know how to organize people and resources effectively To have a clear idea of what to Organize To lead with confidence To know when and where they stray from their path To achieve their goals

Types of plans
1. Strategic plans Plans designed to meet an organizations broad goals (by high ranking managers) 2. Operational plans Plans that contains details for carrying out, or implementing, those strategic plans in day-to-day activities.

The Hierarchy of plans

MISSION STATEMENT

STRATEGIC PLANS

OPERATIONAL PLANS

MISSION STATEMENT
Broad organizational goal, based on planning premises, which justifies an organizations existence. Mission statement is a relatively permanent part of an organizations identity and can do much to unify and motivate members of the organization.

MISSION STATEMENT OF SONY

"To experience the joy of advancing and applying technology for the benefit of the public."

Difference between Operational and Strategic plans

1.

2.
3.

Time Horizons Scope Degree of Detail

Evolution of the Concept of Strategy

Strategia is a Greek word meaning the art or science of being a general Generals needed to lead an army The armys strategy was defined as the pattern of actual actions

Case study