Ch1and Plan

Definitions - “Management” Management means what managers do - Management is the process of Getting the work done through the efforts of others - According to Taylor “Management is an art of knowing what you want to do and then just seeing that it is done in the best and cheapest way” - According to Knootz “It is an art of getting things done through and with people in formally organised groups” Management is a process involving Planning Organising, Staffing, Directing and controlling human efforts to achieve stated objectives in an organisation. -

Management – A continuous Process Planning Feedback

Organising Controlling

Staffing

Directing

Objectives of Management 1) 2) 3) 4) 5)

Effective Use of Resources Development of Resources To incorporate innovations Integration of human efforts Stability in the society

Characteristics of Management 1) 2)

Multidisciplinary Management is an activity - Activity to effective utilizations of “Resources” like 1. Man 2. Machine 3. Money 4. Material

5. Time 6. Energy 7. Power

Characteristics of Management (Continue) 3)

Management principles - A dynamic in nature - It changes as the Environment changes [ Ex. :- Mayavati and JP Association]

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Management principles - Relative, not absolute - Allowances are made for different changing environment [Ex. :- IT companies]

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Management - Science or Art “Science” - It is a body of systematised knowledge, - accepted and accumulated with reference to understanding of general truth, - concerning a particular phenomenon, subject or object of study “Art” - It is related with the bringing of a desired result through application of skills  Comparison between Science and Art Science - Advances by knowledge - Proves - Predicts - Defines - Measures - Impresses

Art - Advances by Practice - Feels - Guesses - Describes - Opines - Expresses

Characteristics of Management (Continue) 6)

Management as Profession “Profession” – Profession is an occupation for which specialised knowledge, skill and training are required  The use of skill is not for self-satisfaction but for larger interest of society  Success of use of skills is measured not in terms of money alone  Characteristics of Profession 1. Existence of Knowledge 2. Acquisition of Knowledge 3. Professional Association 4. Ethical Codes 5. Service Motive

Scientific Management 

Mr. F W Taylor has contributed in the development of principals of Scientific management. He is considered as a “Father of Scientific Management”

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The concept was introduced in the beginning of 20th Century.

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Scientific management is concerned with knowing exactly what you want men to do and see that they do it in the best and cheapest way.

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Tools and elements of Scientific management

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Separation of planning and doing

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Functional foremanship

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Job analysis [Motion study, Time study, Fatigue study]

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Standardisation [It is in terms of tools, work period, working condition, cost of production etc.]

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5. Scientific selection and training of workers

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6. Financial Incentives

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7. Economy

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8. Mental Revolution

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PRINCIPALS OF SCIENTIFIC MANAGEMENT

Replacing rule of thumb with science  Harmony in group Action  Co-operation  Maximum Output  Development of Workers 

Administrative Management -

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

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Henry Fayol, a French industrialist, has contributed in delivering management approach and is published as “Administrative Industrielle at Generale” in 1916 Fayol found that activities of industrial organisation could be divided into six groups Technical (Related to production) Commercial (Buying, selling and exchange) Financial Security (Protection of Property) Accounting Managerial Fayol has identified six managerial Qualities Physical (Health, Fitness)

Administrative Management (Continue…) 1. 2. 3. 4. 5. 6.

1. 2. 3. 4. 5.

Fayol has identified six managerial Qualities Physical (Health, Fitness) Mental (Judgement, decision power) Moral (Energy, Loyalty, Dignity) Education Technical Experience General Principles of Management Division of Work Authority and Responsibility Discipline Unity of Command Unity of Direction

Administrative Management (Continue…) 6. 7. 8. 9. 10. 11. 12. 13. 14.

Subordination of Individual to general interest Remuneration Centralisation Scalar Chain (Easy in communication) Order Equity Stability of Tenure Initiative Esprit de Corps

Hawthorne Experiments and Human relations -

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It is the neo-classical theory The Classical theory has not focused much on Human related aspects in the organisation This theory is conclusion of experiments carried out at Hawthron Plant of GE Company, Chicago Although GE was known for its benefits (Pension, sickness etc.) to Employees, the productivity was not up to mark. This problem was investigated by team of National Academy of Science They have made experiment to find out relation between productivity and physical working conditions. They have conducted research in four phases 1. Illumination Experiment (1924-27) :- Experiment to determine the effects of changes in illumination on productivity 2. Relay assembly test room Experiments (1927-28) :- Experiments to determine the effect of changes in hours and other working conditions on productivity

Hawthorne Experiments and Human relations (Continue……….) 3. Mass interviewing Programme (1928-30) :- Conducting plant-wide interviews to determine worker attitudes and sentiments 4. Bank wiring observation room Experiment (1931-32) :- Determination and analysis of social organisation at work 1. Illumination Experiment 2. Relay Assembly Test Room Experiment To check on relation between Productivity and Working condition. The following were the changes and resultant outcomes: - The incentive system was changed (Productivity increase) - Two five minute rests, one in morning and other in evening and were increased to ten minutes. (Productivity increase) - The rest period was reduced to 5 minute but frequency was increased (Productivity decreased) - The rest was reduced to two of 10 minutes with coffee and snacks

Hawthorne Experiments and Human relations (Continue……….) - Changes in working hours and workday were introduced like cutting an hour off the end of the day. the leave time reduced by half hour and than 1 hour gradually (Productivity increase) -

With every change, absenteeism rate decreased, morale increased and less supervision required

3. Mass Interview Programme Some major findings of the Programme were as follows:- A complaint is not necessarily an objective recital of fects - Objects, persons and events are carriers of social meanings - Personal situation of the worker involves sentiments, desires and interests of person - The social organisation of the company represents a system of values from which worker derives satisfaction or dissatisfaction

Hawthorne Experiments and Human relations (Continue……….) - The social demands of the worker are influenced by social experience in groups both inside and outside the work plant 4. Bank wiring observation room Experiments - These experiment was carried out to analyses functioning of small group and its impact on individual behaviour - Group of 14 male worker was selected: nine workmen, three solder men, and two inspectors. - The wages was based on individual output and bonus was on the based of group output - The assumption was about high output but in actual it’s not so. The reasons for restricted output were 1. Fear of Unemployment 2. Fear of rising standards 3. Protection of slower workers 4. Satisfaction on the part on Management

Hawthorne Experiments and Human relations (Continue……….)  Major findings of Hawthorne Experiments 1. Social Factors in output 2. Group Influence 3. Conflicts (Between formal and Informal Groups) 4. Leadership (Leader with human relation approach can get more respect) 5. Supervision (Friendly to workers, attentive, genuine) 6. Communication  Criticism of Hawthorne Experiment 1. The Hawthorne researchers didn’t give sufficient attention to the attitudes that people bring with them to workplace means they haven’t recognise forces like class consciousness, the role of unions etc. 2. The Hawthorne plant was not typical plant because it was unpleasant place to work itself 3. The study was made on workers as a means to end, and not an end himself

Systems Approach - System is an assemblage of things connected or interrelated so as to form a complex unity - Features of System 1. A system is basically a combination of parts, subparts 2. Parts and subparts of a system are mutually related to each other 3. A system is not merely the totality of parts and subparts but arrangement is more important 4. A system can be identified because it is having boundary 5. The boundary of a system classified it into two parts; Open and Close system 6. System transforms inputs into outputs - Difference between Close system and open system Open System Close system - Interaction with environment - No interaction with environment - It import energy and export output - Self-contained and Self-maintaining - Affected by environment so needs to - No need of setting once set be set - Have feedback mechanism - No feedback mechanism

Features of Management as a System -

Management as a social System Management as Open System Adaptive Dynamic Probabilistic Multilevel and Multidimensional Multivariable An integrated Approach

Implication of System Approach - Morale of Story of Blind people trying to describe elephant

Limitations of System Approach 1. 2.

Abstract Approach Lack of Universality

PLANNING Planning is the selection and relating of facts and making and using of assumptions regarding the future to achieve the desired result

Features of Planning 1.

It is a process so continuous by nature

2.

It is primarily concerned with looking into future

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It involves selection of suitable course of action

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It is undertaken at all levels of the ofganisation

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It is flexible and dynamic

Importance of Planning 1. 2. 3. 4. 5. 6.

Primacy of Planning To offset Uncertainty and change To focus attention on objectives To help in co-ordination TO help in control To increase Organisation Effectiveness

Planning process

Perception of Opportunity

Establishing Objectives

Planning Premises

Identification of alternatives

Establishing Formulation Choice of Evaluation of sequence of of supporting alternatives Alternatives activities plans Planning Premises :- All those factors affecting on Planning are known as planning premises. It is divided in 1. Internal factors (Mission, Policy, Objectives of organisation) 2. External factors (Political, Social, Technological, Economical, International)

Types of Planning

Based on various dimensions types of planning are Dimensions Coverage of activities Importance of contents Time period Approach adopted Degree of formalisation  1. 2. 3. 4.

Difference between Range of choice Types of environment Primacy Level of formulation

Types of Planning Corporate and Functional Planning Strategic and Operational Planning Long term and short term Planning Proactive and reactive Planning Formal and Informal Planning Strategic Broad External First Priority Top Level

Operational Planning Narrow Internal Second Priority Middle Level