Introduction Management
Theory, Management and
Society
Definition of Management, nature, purpose,
Managing: science or art,
Evolution of management thought,
Systems approach to Management process,
Functions of managers
Social Responsibility of managers,
Ethics in managing.
Objectives
The nature and purpose of Management
concepts of productivity, effectiveness and
efficiency
Managerial functions
Contribution of scientist to the management
systems approach helps us understand
management
social responsibility of managers
Importance of ethics in managing
Management
Coordinating and overseeing the work activities of other so that their activities
are completed efficiently and effectively.
Management is the process of designing and maintaining an environment
in which individual working together in groups ,efficiently accomplish
selected aims.
Management is the accomplishment of results through the efforts of other
people (Lawrence A. Appley).
Management is the art of getting things done through and with the people
in formally organized groups. (Koontz H.)
Management is a process of planning, organizing, actuating and
controlling to determine and accomplish the objectives by the use of
people and resources. (Terry. G.)
Management is the process by which managers create, direct, maintain
and operate purposive organizations through systematic, coordinated,
cooperative human effort. (Me. Farland.)
Productivity
Productivity=output/Input
Effectiveness and Efficiency in
management
Efficiency(outputs) Effectiveness(objectives)
resources usage Goal attainment
low waste high attainment
management strives :
•For low resource waste (high efficiency)
•High goal attainment (high effectiveness)
An Organization
Deliberate arrangement of people to accomplish some specific purpose
System approach to the
management process
Systems approach to Management
Management is science or
Art?
Doing the things in light of the realities
of a situation is an art
Organized knowledge underlying the
practice may be referred as science
Manager :
Someone who coordinates and oversees the work of other people so
that organizational goals can be accomplished.
top executive, vice president, president,
manager managing director, chief operating officer,
chief executive officer, or chairperson.
regional manager, project leader, plant
middle manager
manager, or division manager
supervisor, shift managers, district
first line manager
managers, department managers,
office managers, Foreperson
non-managerial employees
workers
Management Functions
Planning
Controlling Organizing
Manage
-ment
function
Leading Staffing
Managerial Roles
Interpersonal role
– Figure head: Performs social duties as organization representative.
– Leader role
– Liaison Role: Communication with outsiders
Informational roles
– Recipient role: receiving information about operation of enterprise.
– Disseminator role : passing information to subordinates
– Spokesperson Role: Transmitting information to those outside the
organization
Decision roles
– Entrepreneurial role : develops new programme.
– Disturbance role : takes corrective action when organization faces sudden
disturbances .
– Resources allocator role : Allocates resources of all kind.
– Negotiator role : deals with various persons and groups
Evolution of management thought
Scientific management
Frederick W. Taylor : Sbop Management (1903)Principles of
Scientific Management (1911)Testimony before the Special House
Committee (1912) Acknowledged as the father of scientific
Management
His primary concern was to raise productivity through greater efficiency in
production and increased pay for workers. by applying the scientific method.
His principles emphasize using science, creating group harmony and
cooperation, achieving maximum output, and developing workers.
Henry [Link]
Called for scientific selection of workers and "harmonious cooperation"
between labor and management. Developed the Gantt chart
Frank & Lillan gilberth
is known primarily for his time and motion studies. Lillian, an industrial
psychologist, focused on the human aspects of work and the understanding of
workers' personalities and needs
Modern operational management theory
Henri Fayol Administration Industrielle et Generale
(1916)
Referred to as the father of modern management theory.
Divided industrial activities into six groups:
[Link], [Link], 3. Financial, [Link],
[Link], and 6. Managerial.
Recognized the need for teaching management.
Formulated 14 principles of management, such as
authority and responsibility, unity of command, scalar
chain and esprit de corps.
Henri Fayol, developed a set of 14 principles:
1. Division of Labor: allows for job specialization.
Fayol noted firms can have too much specialization leading to poor
quality and worker involvement.
2. Authority and Responsibility: Fayol included both
formal and informal authority resulting from special
expertise.
3. Unity of Command: Employees should have only one
boss.
4. Line of Authority: a clear chain from top to bottom of
the firm.
5. Centralization: the degree to which authority rests at the
very top.
6. Unity of Direction: One plan of action to guide the
organization.
7. Equity: Treat all employees fairly in justice and respect.
8. Order: Each employee is put where they have the most
value.
9. Initiative: Encourage innovation.
10. Discipline: obedient, applied, respectful employees needed.
11. Remuneration of Personnel: The payment system
contributes to success.
12. Stability of Tenure: Long-term employment is important.
13. General interest over individual interest: The organization
takes precedence over the individual.
14. Esprit de corps: Share enthusiasm or devotion to the
organization.
Behavioral sciences
Focuses on the way a manager should personally manage
to motivate employees
Hugo Munsterberg (1912)
Application of psychology to industry and management
Walter Dill Scott (1910, 1911)
Application of psychology to advertising, marketing,
and personnel.
Max Weber (translations 1946, 1947)
Theory of bureaucracy.
A formal system of organization and
administration to ensure effectiveness and
efficiency.
Vilfredo Pareto (books 1896-1917)
Referred to as the father of the social systems
approach to organization and management.
Elton Mayo and F J Roethilsberger (1933)
Study of worker efficiency at the Hawthorne Works of the
Western Electric Co. during 1924-1932.
Worker productivity was measured at various
levels of light illumination.
Researchers found that regardless of whether the
light levels were raised or lowered, productivity
rose.
Systems theory Chester Barnard The Functions of the Executive
(1938)
The task of managers is to maintain a system of cooperative
effort in a formal organization. Suggested a comprehensive
social systems approach to managing
Modern management thought
(Major contributors include Chris Argyris, Robert R. Blake, C. West
Churchman, Ernest Dale, Keith Davis, Mary Parker Follett, Frederick Herzberg, G. C.
Homans, Harold Koontz, Rensis Likert, Douglas McGregor, Abraham H. Maslow,
Lyman W. Porter, Herbert Simon, George A. Steiner, Lyndall Urwick, Norbert Wiener,
and Joan Woodward.)
W. Edwards Deming (after World War II) Introduced quality control in
Japan.
Laurence Peter (1969) Observed that eventually people get promoted to
a level where they are incompetent.
William Ouchi (1981) Discussed selected Japanese managerial practices
adapted in the U.S. environment
Thomas Peters and Robert Waterman (982) Identified characteristics of
companies they considered excellent.
Social responsibility of managers
Social Responsibility: the manager’s duty to
nurture, protect and enhance the welfare of
stakeholders.
There are many ways managers respond to this
duty:
Obstructionist response: managers choose not
to be socially responsible.
– Managers behave illegally and unethically.
– They hide and cover-up problems.
Defensive response: managers stay within the law but make no
attempt to exercise additional social responsibility.
Put shareholder interest above all other stakeholders.
Managers say society should make laws if change is needed.
Accommodative response: managers realize the need for social
responsibility.
Try to balance the interests of all stakeholders.
Proactive response: managers actively embrace social
responsibility.
Go out of their way to learn about and help stakeholders
Corporate social responsibility
The serious consideration of the impact of the
company's actions on society.
Social Responsiveness
The ability of a corporation to relate its
operations and policies to the social
environment in ways that are mutually
beneficial to the company and to society
REACTION
OR
PROACTION
PROACTION
Ethics
Ethics: a set of beliefs about right and wrong.
– Ethics guide people in dealings with stakeholders
and others, to determine appropriate actions.
– Managers often must choose between the
conflicting interest of stakeholders.
Managerial ethics: If a manager makes a decision
falling within usual standards, is willing to
personally communicate the decision to
stakeholders, and believes friends would approve,
then it is likely an ethical decision.
Managers should behave ethically to avoid
harming others.
Managers are responsible for protecting and
nurturing resources in their charge.
Unethical managers run the risk for loss of
reputation.
This is a valuable asset to any manager!
Reputation is critical to long term management
success.
All stakeholders are judged by reputation
Three Views of Ethics
– Utilitarian view - ethical decisions are
made on the basis of their outcomes or
consequences
– Rights view - respects and protects
individual liberties and privileges
– Theory of justice view - managers impose
and enforce rules fairly and impartially