Unit-1 PDF - Evolution of Management

Subject Name (Subject code) PGDM-trimester-1 Topic Description: Evolution of Management, functions, role and skills of manager. Unit No: 1 Evolution of Management Thought Management is studied in business academics since earlier times, and it is considered as an inte...

Subject Name (Subject code) PGDM-trimester-1 Topic Description: Evolution of Management, functions, role and skills of manager. Unit No: 1 Evolution of Management Thought Management is studied in business academics since earlier times, and it is considered as an integral part to understand business operations. Many studies indicated that Management theory evolved with “scientific” and “bureaucratic” management that used measurement, procedures and routines as the basis for operations. The evaluation of management can be categorized into different parts: Pre-Scientific Management Era (before 1880), Classical management Era (1880-1930), Neo-classical Management Era (1930-1950), Modern Management era (1950-onward). Stages of Evolution Key Information Pre-Scientific - Industrial revolution in the 18th century had a significant impact Management Period on management. - Entrepreneurs gained access to factors like land, labor, and capital, aiming to combine them effectively. - Notable personalities like Professor Charles Babbage and Robert Owens introduced ideas for effective management. - Prof. Babbage advocated the use of science and mathematics in manufacturing. - Robert Owens focused on employee welfare, cooperation, and trade unions. The Classical Theory - Prominent figures such as H. L. Grant, F. W. Taylor, and Emerson contributed to scientific management. Bindiya Dua MBA SEM 1 Unit 1  - Classical period emphasized standardization, labor division, and scientific approaches in organizations. - Aligned with the industrial revolution and the growth of large- scale enterprises. The Neo-Classical - An improved version of classical theory, focusing on employee Theory relationships in the workplace. - Explored a broader range of aspects within the work ecosystem. The Bureaucratic Model - Proposed by German sociologist Max Weber. - Introduced elements like labor division, authority hierarchy, and employee placement based on technical capabilities. Evolution of - Management theories drew inspiration from various sources, Management Theories including literature, religious leaders, political affairs, and military strategies. - Examples include "The Art of War" by Sun Tzu and "Arthashastra" by Chanakya. The Evolution of - Management science has evolved with time, refining and Management Science improving management thoughts and theories. - This evolution aids in enhancing organizational knowledge and applying management principles effectively. Henry Fayol-Principles of Management Bindiya Dua MBA SEM 1 Unit 1 Henry Fayol, also known as the ‘father of modern management theory’ gave a new perception of the concept of management. He introduced a general theory that can be applied to all levels of management and every department. The fourteen principles of management created by Henri Fayol are explained below:- 1. Division of Work- Henri believed that segregating work in the workforce amongst the workers will enhance the quality of the product. Similarly, he also concluded that the division of work improves the productivity, efficiency, accuracy and speed of the workers. 2. Authority and Responsibility- These are the two key aspects of management. Authority facilitates the management to work efficiently, and responsibility makes them responsible for the work done under their guidance or leadership. 3. Discipline- Without discipline, nothing can be accomplished. It is the core value for any project or any management. Employees good behavior also help them smoothly build and progress in their professional careers. 4. Unity of Command This means an employee should have only one boss and follow his command. If an employee has to follow more than one boss, there begins a conflict of interest and can create confusion. 5. Unity of Direction This means all the people working in a company should have one goal and motive which will make the work easier and achieve the set goal easily. 6. Subordination of Individual Interest This indicates a company should work unitedly towards the interest of a company rather than personal interest. This refers to the whole chain of command in a company. 7. Remuneration This plays a key role in motivating the workers of a company. Remuneration can be monetary or non-monetary. However, it should be according to an individual’s efforts. 8. Centralization In any company the management or any authority responsible for the decision-making process should be neutral. Henri Fayol stressed that there should be a balance between the hierarchy and division of power. 9. Scalar Chain Bindiya Dua MBA SEM 1 Unit 1 Fayol on this principal highlight that the hierarchy steps should be from the top to the lowest. This is necessary so that every employee knows their immediate senior and they should be able to contact them if needed. 10. Order A company should maintain a well-defined work order to have a favorable work culture. A positive atmosphere in the workplace will boost more positive productivity. 11. Equity- All employees should be treated equally and respectfully. It is the responsibility of the manager to check that no employee should face discrimination. 12. Stability- An employee delivers the best if they feel secure in their job. It is the duty of the management to offer job security to their employees. 13. Initiative- The management should support and encourage the employees to take initiatives in an organization. It will help them to increase their interest and make then worth. 14. Esprit de Corps The management is responsible for motivating their employees and supporting each other regularly. Developing trust and mutual understanding will lead to a positive outcome and healthy work environment. FW Taylor Scientific Theory The scientific theory of management changed how organizations perceived workers as lazy and who work, but inefficiently, to earn income. Frederick Winslow Taylor, who formulated the Bindiya Dua MBA SEM 1 Unit 1 scientific management theory, came up with a solution for the inefficiency by observing worker productivity through scientific methods. His work, Principles of Scientific Management, published in 1911, differentiated the scientific method from the traditional management approach. According to Taylor, the ‘remedy for inefficiency lies in systematic management’. He believed that workers are not inherently lazy. Bad working conditions are a reason for their inefficiency. Principles of Scientific Management 1. Replace the “rule of thumb” with science and standardization There should only be one method of working. It must be defined scientifically. According to Taylor, the best way to do a job must be determined beforehand in a scientific fashion. If workers have devised their own ways of working, it will not lead to productivity. There should be no rule of thumb, nor any trial and error for any job. That way, the worker’s performance will increase. 2. Cooperation not individualism Cooperation’ means acting jointly, or a union towards achieving the same result. Taylor emphasized that the workers and the management should act jointly and in unison to achieve the organizational objectives. This principle states that the work should be done in cooperation and with mutual confidence. 3. Harmony not Discord Taylor emphasized that there should be complete harmony between the workers and the management since if there is any conflict between the two, it will not be beneficial either for the Bindiya Dua MBA SEM 1 Unit 1 workers or the management. Both the management and the workers should realize the importance of each other. In order to achieve this state, Taylor suggested complete revolution on the part of both management and workers. 4. Development of each person Each person should be scientifically selected and then assigned work as per their specialization and in any case, if training is required, then impart training to them as efficient employees would produce more and earn more'. Worker training is essential to learn the 'best method' developed as per the scientific approach. This would ensure the greatest efficiency for both workers and the organization. Functions of Management There is no universally accepted list of management functions. Different experts have classified the functions of management in different ways. Koontz and O’Donnell have given a very convenient classification of management functions that are generally accepted they are: Planning: It is the basic function of management. It deals with chalking out a future course of action & deciding in advance the most appropriate course of actions for achievement of pre-determined Bindiya Dua MBA SEM 1 Unit 1 goals. According to KOONTZ, “Planning is deciding in advance - what to do, when to do & how to do. It bridges the gap from where we are & where we want to be”. A plan is a future course of action. It is an exercise in problem solving & decision making. Planning is necessary to ensure proper utilization of human & non-human resources. It is an intellectual activity, and it also helps in avoiding confusion, uncertainties, risks, wastages etc. Organizing It is the process of bringing together physical, financial, and human resource and developing productive relationships amongst them for achievement of organizational goals. According to Henry Fayol, “To organize a business is to provide it with everything useful or it's functioning i.e. raw material, tools, capital and personnel”. Organizing as a process involves:  Identification of activities.  Classification of grouping of activities.  Assignment of duties.  Delegation of authority and creation of responsibility.  Coordinating authority and responsibility relationships Staffing Staffing has assumed greater importance in the recent years due to advancement of technology, increase in size of business, complexity of human behavior etc. The main purpose of staffing is to put right man/woman on right job. Staffing involves:  Manpower Planning (estimating manpower in terms of searching, choose the person and giving the right place).  Recruitment, Selection & Placement.  Training & Development.  Remuneration.  Performance Appraisal.  Promotions & Transfer Directing It is that inter-personal aspect of management which deals directly with influencing, guiding, supervising and motivating subordinates for the achievement of organizational goals. It involves i. Supervision- It is the act of watching & directing work & workers. Bindiya Dua MBA SEM 1 Unit 1  ii. Motivation- It means inspiring, stimulating and encouraging the sub-ordinates with zeal to work. Positive, negative, monetary, non-monetary incentives may be used for this purpose. iii. Leadership- It may be defined as a process by which manager guides and influences the work of subordinates in desired direction. iv. Communication-It is the process of passing information, experience, opinion etc. from one person to another. It is a bridge of understanding. Controlling According to Koontz & O’Donell “Controlling is the measurement & correction of performance activities of subordinates in order to make sure that the enterprise objectives and plans desired to obtain them are being accomplished”. Therefore, controlling has following steps: a. Establishment of standard performance. b. Measurement of actual performance. c. Comparison of actual performance with the standards and finding out deviation if any. d. Corrective action. Role and skills of a manager Managers play an important role in the overall success of a company. They are responsible for leading a team of employees to meet goals and achieve performance metrics. Who is a manager? A manager is a professional who takes a leadership role in an organization and manages a team of employees. Often, managers are responsible for managing a specific department in their company. Managers are often the line of communication between a company's employees and its high-level executives. Functions of a manager A manager's daily responsibilities may vary depending on the industry in which they work. However, some common responsibilities of managers across different sectors can include: Bindiya Dua MBA SEM 1 Unit 1 Leading a team A key responsibility of a manager is to lead its team. They give direction to their employees and answer their questions. They also delegate tasks to specific employees and ensure that projects stay on track. Great managers commit to the role of being a fair leader to help increase their teams' productivity. Training employees Managers are often responsible for training their employees to enhance their job duties and learn new skills. They also offer them professional development opportunities. Often, managers also act as mentors to their employees and teach them skills that they can use as they advance their careers. Making decisions Another duty of a manager is to make decisions for their department. Sometimes, managers make complex decisions, so it is important for them to have a strong decision-making process. This can help them make the best possible decisions for the success of their departments. Often, managers communicate with their employees and other people at their company to help them make the best decisions. Managing conflicts Managers also address conflicts when necessary, including conflicts between members of their team. This means that they usually exercise conflict resolution skills and mediate workplace conflicts. This can help them maintain a positive work environment for their team. Managing their department's budget Managers take responsibility of managing their department's budget using finance and accounting tools. They may meet with other professionals to create budgets. They also determine how much funding their department needs to operate. Conducting performance reviews Another major responsibility of managers is to conduct performance reviews for their employees. In performance reviews, managers give their employees feedback and suggestions on how they can improve. They help their employees set goals or track their progress on meeting goals. Managers also frequently work with their company's human resources department to hire new employees. They identify job candidates, conduct interviews, and extend job offers. Levels of Manager Bindiya Dua MBA SEM 1 Unit 1  Skills for managers A good manager does more than oversee products, tasks and output. Strong managers effectively lead teams by developing a skill set that empowers others. Here are 10 management skills that can help you be a more effective manager: Bindiya Dua MBA SEM 1 Unit 1   Ability to delegate  Ability to inspire and motivate  Conflict-management  Decision-making  Effective communication  Emotional intelligence  Flexibility  Organization  Problem-solving  Strategic thinking Robert Katz is known for his identification of three fundamental skills that managers should possess: technical skills, human skills, conceptual skills.  Technical skill “implies an understanding of, and proficiency in, a specific kind of activity, particularly one involving methods, processes, procedures, or techniques… Technical skill involves specialized knowledge, analytical ability within that specialty, and facility in the use of the tools and techniques of the specific discipline.”1 Technical skill is needed to perform an activity.  Human skill refers to interpersonal or “people” skills—human skill is “the ability to work effectively as a group member and to build cooperative effort within the team he leads.”1 In other words, human skills help facilitate and promote clearer communication within an organization and more productive team interactions. Bindiya Dua MBA SEM 1 Unit 1   Conceptual skill involves seeing a business or enterprise as a whole—how an organization’s functions work together, how changes to one function can affect others and how a business relates to the world around it (to the industry, to the community, to political, social and economic forces).1 Understanding how things work holistically can improve managerial decision-making. Bindiya Dua MBA SEM 1 Unit 1