UNIT I

INTRODUCTION TO
MANAGEMENT

What is Management?

CONCEPT OF MANAGEMENT

The term management is used in three

alternative ways:
1. Management as a discipline
2. Management as a group of people
3. Management as a process

Management defined
Management is the art of getting things done through
and with people in formally organized groups
Harold Koontz
To manage is to forecast and plan, to organize, to
command, to coordinate and control - Henry Fayol
Management is concerned with the systematic
organization of economic resources and its task to make
these resources productive
- Peter F Drucker

Nature of Management

Nature of Management

Multidisciplinary
Dynamic Nature of Principles
Relative, not Absolute Principles
Management: Science or Art
Management as Profession
Universality of Management

IMPORTANCE OF MANAGEMENT

Effective Utilization of Resources

Development of Resources
To incorporate Innovations
Integrating various Interest Groups
Stability in the Society
Handling Difficulties
Economy and Efficiency

FUNCTIONS OF MANAGEMENT
WRITERS

FUNCTIONS

Henry Fayol
Planning, Organizing,
Commanding,
Coordinating, Controlling.
Luther Gulick
POSDCORB
Lyndall Urwick
Planning, Organizing, Commanding,
Coordinating, Communicating,
forecasting, investigating.
Ralph DavisPlanning, Organizing, Controlling
E.F.L Brech Planning, Organizing, Motivating,
Coordinating, controlling
Koontz and ODonnell Planning, Organizing, staffing,
leading, controlling.

FUNCTIONS OF MANAGEMENT

TAYLORS SCIENTIFIC
MANAGEMENT
Scientific Management concept was
introduced by Frederick Winslow Taylor
in USA in the beginning of 20th century.
Scientific Management is concerned
with knowing exactly what you want
men to do and then see in that they do
it in the best and cheapest way.

ELEMENTS AND TOOLS OF SCIENTIFIC

MANAGEMENT

1.
2.
3.
4.
5.
6.
7.
8.

Separation of Planning and Doing.

Functional Foremanship.
Job Analysis.
Standardization.
Scientific Selection and Training of Workers.
Financial Incentives.
Economy.
Mental Revolution.

Separation of Planning and

Doing

Functional Foremanship

Job Analysis

Standardization.

Scientific Selection and

Training of Workers

Financial Incentives.

Economy &Mental
Revolution

PRINCIPLES OF SCIENTIFIC
MANAGEMENT

1.
2.
3.
4.
5.

Replacing Rule of Thumb with Science

Harmony in Group Action
Co-operation
Maximum Output
Development of Workers

Harmony in Group Action

Co-operation

Maximum Output

FAYOLS PRINCIPLES OF
MANAGEMENT
1.
2.
3.
4.
5.
6.

Division of Work
Authority and Responsibility
Discipline
Unity of Command
Unity of Direction
Subordination of Individual to General
Interest
7. Remuneration of Personnel

FAYOLS PRINCIPLES OF
MANAGEMENT
(contd.)

8.
9.
10.
11.
12.
13.
14.

Centralization
Scalar Chain
Order
Equity
Stability of Tenure
Initiative
Esprit de Corps

MAYOS HAWTHORNE EXPERIMENTS

The Hawthorne plant of Generic Electric

Company, Chicago, was manufacturing
telephone system bell.
It employed about 30,000 employees at
the time of experiments.
A team was constituted led by Elton Mayo
(Psychologist) to investigate the causes of
dissatisfaction among the employees.

FOUR PHASES OF HAWTHORNE

EXPERIMENTS

1. Illumination Experiments (1924-27)

2. Relay Assembly test room experiments
(1927-28)
3. Mass interviewing programme (192830)
4. Bank Wiring Observation Room
Experiments (1931-32)

IMPLICATIONS OF HAWTHORNE
EXPERIMENTS

1.
2.
3.
4.
5.
6.

Social Factors in Output

Group Influence
Conflicts
Leadership
Supervision
Communication

CRITICISMS
The Hawthorne researchers did not give
sufficient attention to the attitudes that
people bring with them to the work place.
The Hawthorne plant was not a typical plant
because it was a thoroughly unpleasant place
to work.
They assume acceptance of managements
goals and look on the worker as someone to
be manipulated by management.

MASLOWS THEORY OF HUMAN

NEEDS

The behavior of an individual at a

particular moment is usually
determined by his strongest need.

MASLOWS THEORY OF HUMAN

NEEDS

MASLOWS THEORY OF HUMAN

NEEDS
Basic Human Needs
Food
Air
Water
Clothing

Physiological Needs

Safety and Security

Protection
Stability
Pain Avoidance
Routine/Order

Safety Needs

Love and Belonging

Affection
Acceptance

Social Needs

Inclusion

Esteem

Esteem Needs

Self-Respect
Self-Esteem

Respected by Others

Self-Actualization

Achieve full potenti

Fulfillment

Summary

Self-Actualization

Esteem

Belonging

Safety
Physiological

Mc GREGORS THEORY X AND

THEORY Y
The managements action of motivating
human beings in the organization, according
to Mc Gregor, involves certain assumptions,
generalizations and hypotheses relating to
human behavior and human nature.
Mc Gregor has characterized these
assumptions in two opposite points, Theory X
and Theory Y.

THEORY X
In this theory, McGregor has certain
assumptions about human behavior as follows:
1. Management is responsible for organizing the
elements of productive enterprises money,
materials, equipment, people in the interest
of economic ends.
2. With respect to people, this is a process of
directing their efforts, motivating them,
controlling their actions, modifying their
behavior to fit the needs of the organization

THEORY X

(contd..)

3. Without this active intervention by

management, people would be passive
even resistant to organizational needs.
4. The average man is by nature indolent he
works as little as possible
5. He lacks ambition, dislikes responsibility,
prefers to be led.

THEORY X

(contd..)

6. He is inherently self-centered, indifferent to

organizational needs.
7. He is, by nature, resistant to change.
8. He is gullible, not very bright, the ready dupe
of charlatan and the demagogue.

THEORY Y
The assumptions of Theory Y are described by
McGregor in the following words
1. Work is as natural as play or rest.
2. Man will exercise self-direction and self-control
in the service of objectives to which he is
committed.
3. Commitment to objectives is a function of the
reward associated with their achievement.

THEORY Y

(contd..)

4. The average human being learns under proper

conditions not only to accept, but to seek
responsibility.
5. The capacity to exercise a relatively high degree
of imagination, ingenuity and creativity in the
solution of organizational problems is widely, not
narrowly, distributed in the population.
6. The intellectual potentialities of the average
human being is only partially utilized.

HERZBERGS TWO FACTOR THEORY

OF MOTIVATION

Need priority, to a great extent,

characterizes the types of behavior. In this
connection, a research study was conducted
by Frederick Herzberg and associates of CaseWestern Reserve University.

HERZBERGS TWO FACTOR THEORY

OF MOTIVATION (contd..)
His findings are that there are some job
conditions which operate primarily to
dissatisfy employees when the conditions are
absent, however, their presence does not
motivate them in a strong way.
Another set of job conditions operates
primarily to build strong motivation and high
job satisfaction, but their absence rarely
proves strongly dissatisfying.

HERZBERGS TWO FACTOR THEORY

OF MOTIVATION (contd..)

The Two Factors are

1. Hygiene Factors
2. Motivational Factors

SYSTEMS APPROACH TO
MANAGEMENT
The basic idea of Systems approach is that
any object must rely on a method of
analysis involving simultaneous variations of
mutually dependent variables.
The boundary of a system classifies it into two
parts:
1. Closed System
2. Open System

FEATURES OF MANAGEMENT AS
A SYSTEM
1.
2.
3.
4.
5.
6.
7.
8.

Management as a social system

Management as open system
Adaptive
Dynamic
Probabilistic
Multilevel and Multidimensional
Multivariable
An integrated Approach

LIMITATIONS OF SYSTEMS
APPROACH

Systems approach suffers from two limitations:

1. Abstract Approach
2. Lack of Universality

LEADERSHIP STYLES

Leaders can be differentiated into good or

bad based on the styles they adopt or how
they choose to influence their followers.
They are:
1. Autocratic
2. Democratic or Participative
3. Free Rein or Laissez faire

SOCIAL RESPONSIBILITIES OF
MANAGEMENT
Responsibility towards owners
Responsibility towards employees
Responsibility towards consumers
Responsibility towards the Governments
Responsibility towards the community
and society