Management Theories

Principles of Management - Unit I

• Management has acquired special significance in the present competitive business world.
• Efficient management is essential for business unit survival.
• Management is comprehensive, covering all aspects of business.
• Management effectively utilizes available resources for achieving defined objectives.
• Management comprises planning, organizing, staffing, leading, coordinating, and controlling.
• Key resources include human, financial, technological and natural resources.
• Management ensures orderly business conduct and is vital for enterprise operations.
• Resources include men, money, materials, machines, methods and markets.
• Output is in the form of achieved objectives, available through efficient management processes.
• Koontz stated that "Management is the art of getting things done through formally organized groups"
• Fayol stated that "To manage is to forecast and plan, to organize, to command, to coordinate and to control".
• Drucker stated that "Management is a multi-purpose organ that manages business and manages managers and manages workers and work".
• Management plans business activities and guides & coordinates employee efforts.
• Effective communication inside and outside the organization is a key need of proper Management

Science vs Art

• Management combines science and art.
• Management is considered a science with an organized body of knowledge with universal truths.
• Management is an art, requiring managers to possess personal skills.
• Science provides knowledge, while art applies knowledge and skills.

Management Features

• Management is goal-oriented.
• Management integrates human, physical, and financial resources.
• Management is continuous
• Management is pervasive
• Management is a group activity.

Management Functions

• Key management functions involve planning, organizing, staffing, directing, and controlling.
• Henry Fayol defined “To manage is to forecast and plan, to organize, to command, & to control”.
• Luther Gullick used the acronym POSDCORB: Planning, Organizing, Staffing, Directing, Co-ordination, Reporting, Budgeting.
• Koontz and O'Donnel emphasize Planning, Organizing, Staffing, Directing, and Controlling.

Planning

• It is the basic function of management.
• It determines action courses for achieving desired goals.
• Planning involves systematic thinking for accomplishing pre-set goals.
• Planning proper human & non-human resource utilization.
• It is pervasive and an intellectual activity.
• It helps in preventing confusion, uncertainties, risks, and wastage.

Organising

• Organizing brings together physical, financial, and human resources.
• Organising develops productive relationships to achieve organizational goals.
• It involves identifying activities, classifying/grouping activities, assigning duties.
• Organizational processes enable the delegation of authority and the creation of responsibility.
• It also enables coordinating authority and responsibility relationships.
• Henry Fayol defined “To organize a business is to provide it with everything useful”.

Staffing

• "Managerial function of staffing involves manning the organization structure through proper and effective selection".
• Staffing involves human resource processes to fill designed roles.
• Activities include manpower planning, recruitment, selection, placement.
• Additional activities include training & development, remuneration, performance appraisal, promotions & transfer.

Directing

• It is a managerial function that drives organizational methods for efficiency.
• It involves influencing, guiding, supervising, and motivating subordinates to achieve goals.
• Key elements include supervision, motivation, leadership, and communication.

Controlling

• Controlling measures accomplishments against standards.
• Controlling enables correcting deviations to ensure organizational goal achievement.
• Efficient control predicts deviations before they happen.
• The steps of controlling include establishing performance standards, measuring actual performance, comparing them with standards, and corrective action.

Management Levels

• Levels of management define managerial position demarcations.
• More management levels indicate higher business size and workforce; versus vice versa.
• The levels determine the command chain, authority, and status.
• Management can broadly be classified in three categories : Top, Middle and Low level

Top Level of Management

• It includes board of directors, CEOs, and managing directors.
• Top management is the ultimate authority and manages enterprise goals and policies.
• More time is devoted to planning and coordinating.
• Roles of top level management include establishing objectives and broad enterprise policies.
• Top level management issues instructions for department budgets, procedures, schedules.
• Top level management prepares strategic plans and policies for the company and appoints middle level managers/departmental managers.
• The roles include controlling and coordinating departmental activities.
• A key role is maintaining outside contacts.
• They must provide guidance & direction.
• Top level has accountability to shareholders for enterprise performance.

Middle Level of Management

• It includes branch and departmental managers.
• Middle managers are accountable to top management.
• They spend more time on organizational and directional functions and carry out organizational plans and directives under the top management.
• They create plans for sub-units.
• Middle level management participates in employment & training for lower levels and explains policies originating from top management and sends important data to top management.
• Their function is to coordinate activities within departments and evaluate performance and inspire performance growth.

Lower Level of Management

• It is also known as the supervisory/operative level and includes supervisors, foreman, superintendent.
• Supervisory management oversees and directs operative employees and focuses largely on direction and control and involves assigning jobs & tasks.
• Supervision guides and instructs workers daily as well as being responsible for quality and output quantity.
• A key task is maintaining good relations in the organization and communicating worker appeals and suggestions to higher management.
• They are helpers in solving worker grievances and in supervising subordinates.
• Essential tasks are arranging materials, machines, and tools.
• Lower level management prepares regular performance reports, enforces enterprise discipline and motivates workers

Managerial Roles in the organization

• Henry Mintzberg identified ten different roles across three categories.
• Interpersonal roles - (e.g., figurehead, leader, liaison).
• Informational roles - (e.g., monitor, disseminator, spokesperson).
• Decisonal roles - (e.g., entrepreneur, disturbance handler, resource allocator, negotiator).
• Interpersonal roles involve people and ceremonial duties such as staffing/training in the leadership position as well as external and internatLiaison communication.
• Informational roles involve collecting and disseminating information so as to monitor, disseminate, and act as spokesperson for internal and external stakeholders.
• Decisional roles involve resource allocation or making changes as a negotiator to handle disturbances from within.

Managerial Skills

• Important managerial skills for which managers expected to have the ability for: Technical, Human, Conceptual and Design Skills
• Technical skills reflect understanding and proficiency in a specialized field and will allow a manager to have skills in accounting, finance, engineering, manufacturing, or CS.
• Human Skills include manager's aptitude to collaborate effectively, function as both team member and a leader.
• Conceptual skills relate to visualizing the organization as a unified whole, discerning interrelationships among parts, and grasping its fit within contexts.
• Design skills comprise problem-solving abilities.
• Skills needed across these vary across roles.
• Concept and design skills, human skills and technical skills.

Management vs Administration

Management Theories

• These theories have focus on role of of supervision, organization, and group performance that guide managers.
• Early management theories relied on reward and punishment and are considered to be “Transactional theories".
• Rewarding successful employees and punishing failed attempts.
• Classical theory - scientific, bureaucratic and administrative management .
• Neo-classical theory - Behavioral Science Approach.
• Modern management theories - quantitative, system and contingency approach

Classical School thought contributors:

• Fredrick Winslow Taylor, Max Weber, Gilbreths and Henry Gantt
• Fredrick Winslow Taylor is regarded as “The Father of Scientific Managemen.".
• Frank Gilbreth is considered the "Father of Motion Study”.
• Henry Gantt was remembered for his task-and-bonus system & the Gantt Chart, while also being a close associate of Taylor.

Contributions from different contributors in the Classical School

• Frank Gilbreth pioneered motion study to find sequence & minimum motions for tasks. His study devised a classification scheme label workers hand motions called "therbligs".
• Henry Gantt was known for his work on the task-and-bonus system & introduced incentive plan for foremen and compared planned and actual performance.
• Limitations of the theory was that it focuses issues at the operational level rather than organization-wide strategies

Bureaucratic Management

• Based on Max Weber
• Bureaucracy favored efficiency, uniformity, and a clear distribution in levels of power
• Weber believed that bureaucracy was most systematic way to organized human activity
• Major Features Included
  • Work specialization & division of labor
  • Abstract rules & regulations
  • Impersonality of managers
  • Hierarchy of organization structure

Administrative Management

• Henry Fayol gave a new view of concept of management - The Fayol, concentrating on organizational efficiency.

• Organization could be split into 6

  • Technical - manufacturing products
  • Commercial - exchange
  • Financial - use of capital with search
  • Security - people & property
  • Accounting - tracking and records
  • Managerial - planning, organizing, commanding, coordinating & controlling.

Fourteen Principles of Management By Henri Fayol

• Division of Work to enhance worker quality
• Balance Authority with responsibility under managers or leaders
• Maintaining Discipline from good sensible performance interrelation
• Unity of Command where every employee obeys one boss in coordination
• Unity of Direction so everyone goals are oriented same way
• Individual Interest are secondary than the group.
• Importance of Remuneration to motivate employees by a fair monetary or non-monetary payment
• Importance of Centralization with decision making neutral.
• Highlighting that hierarchy is is designed from TOP level to LOWEST level.
• An ORDER that is well-designed at any company is boosted production
• Need for EQUITY in treatment of workers or employees
• Job STABILITY in secured environment to encourage
• Support worker INITIATIVE
• Maintaining Esprit de Corps with trust and mutual understanding so as to motivate themselves.

Limitations of Bureaucratic & Administrative Management

• Weber's theory was rigid and ignored creativity
• Classical theory was limited in scope to aspects organizational behaviour
• Does not explore important dynamics in motivation or empowerment
• Did not considered interal or external impact on behavior

Contribution of Neo-Classical Theory

• Significant addition to behavioral understanding at work
• Gave important understanding of human factors of workforce
• Developed insights for better working conditions improvements

Contribution of Elton Mayo to the Studies Hawthorne Studies

• Reccomended Father of Human Relations School
• Contributed human relations to thought

Mayo's Experiments

• Amount of work determined is set apart by social norms rather than skill
• Social awards have impact behavior of workers
• Group are considered not single individuals, but rather a unit
• Important that the structure is set apart by workers

Western Electricity studies

• There was a clear effect between the Physical work
• Well-being and productivity in work can result in better production.
• Illumination Experiment (1924-27), Relay Assembly Test Room Experiment (1927), Mass Interviewing Programme(1928-31), Bank Wiring Experiment (1931-32)

Criticism on Human Relation in Mayo's theory

• Lacks actual workers of base.
• Workers were influenced of importance and attention.
• Anti union and pro-management to role if unionized free society
• Focused on interpersonal relation of nature and not on the work itself
• Obtain the lack of environmental factor
• Not support conclusion drive form mayo and researchers.
• Lacks of economic dimension and tension conflicts
• Attention too informative relation, but few to functional relation of supervise

Mary Parker Follett theory of Power

• Never manage for profit enterprise herself, yet key insights dymaic at groups a peal. "pull" instead of "push" for employee motivation (differentiated bt power over power with"
• Conflict resotution through INtegration "Identify an "integrate into" better decision makings
• Genuine power at lead is power with.
• True at leaders is group power, rare expressing personal power

Abraham Maslow (1943)'s theory of the hiearchy of needs

• People motivated for certain needs,
  Our behavior will for surival needs
• 5 steps are
  • Physiological = Water is for survival
  • Safety. = to survive
  • Love = to interact to each other
  • Esteem- = for diginity
  • Self =. is to meet self potential

Douglass Mcgregors's Management and Theory Y

• McGregor believed Managers that most basic effects influence way organization is run and that is called people centered
• Theory X is for traditional control X.
• Theory Y to Y is that integration organization goals
  • Inherent dislike = avoid if needed
  • control to avoid objectives
• Theory requires close
  • Firms under superviser tasks and threat is promise
  • Approach can misrust. can place work need socailt and egoistic
• Theory 1.1.
• External controls from punishments need be effort
• External controls and the the threat of punishment need be effort. Not only self is commit
• Human being learns responsablity and conditions not nature

Modern Managment THought- the Quantitive System Conting and Appriacehd

• From then period of the extreme hour
• Business recognize activities similar lined during
• Change ownership patterns at hired level
• Used mathematical symbols and relations, simulation/ queuing

Limitations in Management

• 1,this appraoch does not giver weight age to human all
• This tool and helps decision making manager as well to use.
• Some info not to create as well

System Approach

• Organizaion is organic and open system. is made integration to whole and unity System are generalization and interelatiation in dependedent
• For parts forming the main forms is national of it. .

Basic features system

• Consits in interaction should be studied inter relation System exists boundary that parts
• Dynamics with its responded environment
• Effectiveness that system for

(iii) Contingency or Situational Approach:

• that management most latest approached.During theory that was other way that was best One is useful thing but not manageral Contingency theory w practice is behavioral view/The that internal with exteral and designs that Therefore appraoched has evalte practice approeched"
• View system have the to to other by all systems Contingency is the improvement to that
• This also have the recognize product with its the exterm

Features Contingency

Features of contingent Appraoch

• The no things. manage with a a all plans environment. and change stable Applies in
• Models the have suitable The realistic world be. be. and to is as are before feasible

Unit II- Planning

• Is what and who go. intellectual that Planning like situations which can "Plan is doing to go the

• Forecast goals to achievement also by market plan

is and resource reach product in and improve future best . It risk is and thus among what futures and to standards the with .

Managerial perform bases i,e, which to from plans to to thinking innovate etc future an can changes effectively

Steps is the planning

• Analyzing opportunities Setting objectives developing premises indentifying alternatives evaluating and selcting

Limitations

Limitatnios = leads to planning rigidity d/e in dynamic environment

Involves huge/large cost Consuming times Guarantee success

Classify

An operation that under that plans a one not to depends , the that event It one is with is the and seminar include and projects, names of is plans in

Used for that It smoothly. routine its the business and policies

Organization 1) is of from and made that by be a is is - and and It the

• To express what the or period, can be

Strategy-

• Provides a to. organization for the is the direction or term organization (III). It object the. long

Organization

• All are, as, or, that. it set, will which all-

The evolution and application of management theories. Explore quantitative, systems, and contingency approaches. Understand the impact of mathematical tools and stakeholder priorities in modern management.