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SYBCOM Semester-III Management: Principles & Functions Module Title No. of Number Lectures 1 Introduction to 12 Management 2 Planning & Decision Making 10 3 Organising 11 4 Directing and Controlling 12 Total 45 1

Books: 1) Essentials of Management-Koontz and Weihrich 2) Management-Robbins, Coulter and Vohra 3) Management Theory and Practice-C. B. Gupta 4) Principles of Management- Neeru Vasishth and Vibhuti Vasishth 5) Principles and Practice of Management- L. M. Prasad 2

Module- 1 Introduction to Management Certain questions/issues  Who are Managers?  What is Management?  What do Managers do? 3

Who are Managers?  Orgs need managers- good or great managers- who can:-  Set goals and plan to achieve those goals  Organise and arrange the things  Lead and motivate others to achieve those goals  Evaluate & control and change the things if necessary 4

Manager-Definition  Robbins & others define “a manager as someone who coordinates and oversees the work of other people so that organizational goals can be accomplished”  Management is what managers do. 5

What is Management? Definitions  “an art of getting the things done through others.”-Mary parker  George Terry defines Management as a “distinct process of planning, organising, actuating (influencing) and controlling, performed to determine and accomplish the stated objectives by the use of human beings and other resources” 6

Contd.  “To manage is to forecast & to plan, to organise, to command, to coordinate and to control”-Henri Fayol  John Mee defines “Management as the art of securing maximum results with minimum efforts so as to secure maximum prosperity and happiness for both employer and employee and give public the best possible service” 7

Management- nature and features  A process: conversion of input into output  A social process: it deals with people  Goal oriented: sets goals and aims to achieve them  Needed at all levels: top, middle and lower  Required in all walks of life: corporate, Government, education, defence, NGOs, etc  Multidisciplinary- draws knowledge from many disciplines such as sociology, psychology, mathematics, etc 8

Management- nature and features  Continuous and dynamic: ever changing  Intangible: can’t be seen, only experienced  A combination of an Art and Science  A profession- but in a limited sense  Can be aided but can’t be replaced by computers 9

Why Management? Significance/Importance (Benefits)  Brings discipline in work-avoids chaos  Helps in optimum use of resources  Raises efficiency, productivity & profitability  Establishes cordial relations with manpower: better use and relations 10

Why Management? Significance/Importance (Benefits)  Enhances competitive strength  Provides vision: -helps in long term planning and execution  Smooth expansion and diversification of business activities  Improves well-being of the society  Enhances corporate image 11

Functions of Management Core functions: 1. Planning 2. Organising 3. Leading 4. Controlling Other functions:  Staffing  Coordinating 12

Coordination- Meaning & Definitions  To coordinate means to harmonise, to synchronise, to match-up, to bring together, etc.  Henri Fayol, “to coordinate is to harmonise all the activities of a concern (business/org) so as to facilitate its working and its success”  James Mooney, “coordination is the orderly arrangement of group efforts to provide unity of action in the pursuit of a common purpose” 13

Nature/Features of Coordination  Not a distinct/separate function but the very essence of management  Does not arise/happen automatically, it is the result of conscious efforts  Continuous and systematic process  Mainly required in group efforts and not in individual effort  Present in all functions of mgt 14

Coordination Planning Controlling Organising Coordination Leading Staffing 15

Why Coordination? Need and Importance/ Benefits: 1. It is the essence of management: needed in all functions such as Planning, Organising, Staffing, Leading and Controlling 2. Helps to reconcile/unite the goals of different depts/people 3. Brings unity and teamwork: leads to better understanding and cooperation 4. Minimises conflicts: ensures smooth functioning 16

Why Coordination? (Contd.) 5. Economy in operations- higher efficiency 6. Synergy- complements each function and brings higher benefits than the individual effort 7. Leads to higher/faster growth 17

Management Levels  Top Management  Middle Management  Lower/First-line/ Supervisory Mgt 18

Management Skills  Robert Katz- three basic skills 1. Technical Skills 2. Human Skills 3. Conceptual and Design Skills 19

Managerial skills 1) Technical skills:  job specific knowledge and techniques needed to efficiently perform the given tasks  an ability to use processes, systems, tools and techniques  e.g. operating a machine, preparing an account statement  Technical skills are more required at the lower/supervisory levels 20

Contd. 2) Human skills:  Interpersonal skills- an ability to work with other people individually and in a group  Communication skills: an ability to talk, listen and understand. Also includes presentation skills  Leadership skills: an ability to lead, guide, influence and motivate others –also include negotiation skills, an ability to understand the problems and resolve  Essential at all the levels 21

Contd. 3) Administrative/Organizational skills:  an ability to arrange the resources, implement the plans & decisions, coordinate the diverse activities, monitor and regulate the work  More essential at middle and lower levels 22

Contd. 4) Conceptual skills:  an ability to think and conceptualize the complex situations,  an ability to visualize and understand the future,  prepare the long term plans and strategies,  to diagnose problems and suggest solutions,  to identify the opportunities and manage the change  More essential at the top level 23

Managerial skills at different levels Cli ck Top to ed Middle it M Lower as te r te xt st Conceptual Human Technical 24

Managerial Roles: Henry Mintzberg- 10 different roles A) Interpersonal Roles: involve people and duties that are ceremonial and symbolic in nature 1. As Figurehead- performing ceremonial duties 2. As Leader- leading the subordinates by influencing, guiding and motivating them 3. As Liaison Officer-maintaining relations with insiders and outsiders 25

Managerial Roles: B) Informational Roles: involve collecting, receiving and disseminating information 1. As Monitor- the work of collection of information 2. As Disseminator- to supply information to those who need it 3. As Spokesperson- represent the organisation and speak to outsiders and media 26

Managerial Roles: C) Decisional Roles: making decisions or choices 1. As Entrepreneur- invest by starting and raising the funds 2. As Disturbance Handler- handles the troubles and brings peace 3. As Resource Allocator- provide resources to different heads or staff 4. As Negotiator- to enter into negotiation or contractual obligations with suppliers, creditors, union leaders, etc 27

Evolution of Managment  Historical Background of Mgt  How old is Management?  Pre-Industrial Revolution period  Industrial & Post-Industrial Revolution period  Growth of Business and Managerial Revolution  Development of Management as a science and a separate discipline 28

Evolution of Management  Classical Approach  Quantitative Approach  Behavioural Approach  Contemporary Approach 29

A)Classical Approach Developed through Three main streams namely;  Scientific Management  Administrative Theory or Functional Approach  Bureaucratic Management 30

Scientific Management  looks mgt from technical viewpoint to improve efficiency through men-machine relationships  Main contributors: F.W.Taylor, Harrington Emerson, Henry Gantt, Frank Gilbreth and Lillian Gilbreth, etc. 31

F.W.Taylor (1856-1915) -a pioneer in Efficiency Movement Main Elements/Tools of Scientific Management 1. Separation of planning and doing- division of work and specialization 2. Work study-time, motion and fatigue studies 3. Standardization-use of standard tools and techniques 32

Contd. 4. Scientific selection and training of workers 5. Financial incentives through differential wage payments 6. Economy- use of control techniques to reduce wastages 7. Mental revolution- from conflict to cooperation 33

Scientific Management-Principles 1. Replace rule-of-thumb methods with methods based on a scientific study of the tasks (Work Study and other studies) 2. Scientifically select, train & develop each employee rather than leaving them to train themselves 3. Provide detailed instruction & supervision to each worker in the performance of his task 4. Divide work nearly equally between managers & workers, so that the managers apply ‘scientific management principles’ to planning the work and the workers actually perform the tasks 34

General Administrative Theory  Henri Fayol (1841-1925) was a French management theorist. He proposed five primary functions of management 1. Planning 2. Organizing 3. Commanding 4. Coordinating 5. Controlling 35

Henri Fayol and his fourteen Principles of Management 1. Division of work: among employees leads to specialization and improves efficiency 2. Authority & Responsibility:  Authority is the right to give orders and the power to demand obedience  Responsibility is the duty to discharge the given task or duty 3. Discipline:  Follow or obey and respect rules and regulations of the org 36

Contd. 4. Unity of command:  Each employee should have only one boss at a time to give orders. It avoids conflicts and chaos 5. Unity of direction:  the activities having the same objectives, should have one plan of action and one head to guide subordinates to achieve unity and coordination 37

Contd. 6. Subordination of Individual interests to the general interest:  Organization's interests must always get preference over individual interest 7. Remuneration: payment of fair remuneration to motivate employees 38

Contd. 8. Centralisation and Decentralisation  Centralisation-concentration of all authorities in one/few hands  Decentralisation- dispersal of all major authorities to subordinates  Fayol suggested a proper balance between Centralisation and Decentralisation 39

Contd. 9. Scalar chain (line of authority):  Formal chain of command from top to bottom in the organization for effective communication 40

Scalar Chain A BE C F Gang Plank(Passage) DG 41

Scalar Chain  The flow of communication/information is both ways-downward and upward  It may take some time but in formal structure, it has to be like that only, otherwise it would create a lot of problems or chaos  However, in emergency situations, this flow can be broken and a direct communication link can be established through a ‘Gang Plank’ 42

Contd. 10. Order: Orderliness- everything must be properly arranged  people and materials should be in the right place and at the right time 11. Equity: fair and kind treatment to employees- no exploitation 12. Stability of tenure of personnel:  ensuring stability and long-term employment. Giving employees job security to remove their fear 43

Contd. 13. Initiative:  giving opportunity and freedom to employees to think about new ideas, to plan and execute. This encourages them to give innovative ideas 14. Esprit de corps:  Harmony, unity and team spirit among all 44

Bureaucratic Management given by Max Weber-(1864-1920) a German Sociologist  Main emphasis on…  formal & uniform rules & procedures  Hierarchy of authority  Specialization, Career advancement on merit, etc.  In India, the entire Government machinery is based on Bureaucratic Structure  It is, at times, too much rigid & time consuming due to ‘Red Tapism’ and it results into a lot of delays 45

B) Human Relations Approach or Behavioural Approach (Neo-classical)  Early contributors: Elton Mayo, Mary Parker, Robert Owen, Chester Barnard, Hugo Munsterberg, etc.  Classical approach focuses on Jobs whereas this approach focuses on people performing the jobs  Elton Mayo’s Hawthorne Experiments proved that the Jobholder is more important than the Job 46

i)Human Relations Approach  The Hawthorne Experiments revealed that productivity could be increased not only by improving the lighting levels (physical conditions) but through informal social relations among the members of the work- group  A factory or an office is not only a work place but also a place for social interaction  A concept of ‘Social Man’ was introduced 47

Contd.  The Hawthorne studies discovered that workers were highly responsive to additional attention from their managers and the feeling that their managers actually cared about, and were interested in, their work  The studies also found that although financial motives are important, social issues are equally important factors in worker’s productivity 48

For reference  The Hawthorne studies were a series of investigations conducted by Elton Mayo and Fritz Roethlisberger. The investigations were a part of a refocus on managerial strategy with emphasis on the socio-psychological aspects of human behaviour in organizations. These studies were conducted in the 1920s at the Hawthorne plant of the Western Electric Company.  The hypothesis of research was that if workers are given a choice in choosing their co-workers, everyone works together as a group, everyone is treated special, and everyone is supervised by a sympathetic supervisor, the productivity of workers will increase. One of the key findings of the research was that monetary incentives combined with good working conditions are not as important as meeting workers’ need and desire to work as a group and feel included in decision making. 49

For reference  The studies originally looked into whether workers were more responsive and worked more efficiently under certain environmental conditions, such as improved lighting. The results were surprising: Mayo and Roethlisberger found that workers were more responsive to social factors—such as the people they worked with on a team and the amount of interest their manager had in their work—than the factors (lighting, etc.) the researchers had gone in to inspect.  The Hawthorne studies discovered that workers were highly responsive to additional attention from their managers and the feeling that their managers actually cared about, and were interested in, their work. The studies also found that although financial motives are important, social issues are equally important factors in worker productivity. 50