Concept Of Management

MANAGEMENT PRINCIPLES & VALUES: ----------------------------------------------------------------------------------------------------------

Concept of Management

by:Ajay Kumar.

Concept of management: Nature

Management is a process of designing and maintaining environment in which individuals working together in group, efficiently accomplish selected goals. This basic definition need to

Concept of management: Purpose

2. As managers, people carry the managerial function of planning, organizing, staffing, leading and controlling. 2. Management applies to any kind of organization.

3. it implies to managers at all organizational levels. 4. aim of all managers is the same: to create the surplus. 5. managing is concerned with productivity; this implies effectiveness and efficiency.

All manage organizations which can be defined as a group of people working together to create a surplus. In business organization, this surplus is profit. In nonprofit organization, such as charitable organization, it may be satisfaction of needs.

Management is science or art:One of the enduring questions in the field of management is whether it is an art or a science. Webster's College Dictionary defines an art as "skill in conducting any human activity" and science as “any skill or technique that reflects a precise application

Reflected in the differences in these definitions is the use of precision in science, in that there is a particular, prescribed way in which a manager should act.

Thus, management as a science would indicate that in practice, managers use a specific body of information and facts to guide their behaviors, but that management as an art requires no specific body of knowledge,

Conversely, those who believe management is an art are likely to believe that there is no specific way to teach or understand management, and that it is a skill borne of personality and ability.

Those who believe in management as an art are likely to believe that certain people are more predisposed to be effective managers than are others, and that some people cannot be taught to be effective managers.

That is, even with an understanding of management research and an education in management, some people will not be capable of being effective practicing managers.

FOUNDATIONS OF THE MANAGEMENT AS A SCIENCE PERSPECTIVE:-

Practicing managers who believe in management as a science are likely to believe that there are ideal managerial practices for certain situations.

That is, when faced with a managerial dilemma, the manager who believes in the scientific foundation of his or her craft will expect that there is a rational and objective way to determine the correct course of action.

• This manager is likely to follow general principles and theories and also by creating and testing hypotheses For instance, if a manager has a problem with an employee's poor work performance, the manager will look to specific means of performance

Many early management researchers subscribed to the vision of managers as scientists. The scientific management movement was the primary driver of this perspective.

Scientific management, pioneered by Frederick W. Taylor, Frank and Lillian Gilbreth, and others, attempted to discover "the one best way" to perform jobs. They used scientific processes to evaluate and organize work so that it became more efficient and effective.

Scientific management's emphasis on both reducing inefficiencies and on understanding the psychology of workers changed manager and employee attitudes towards the practice of management.

Frederick W. Taylor's Principles of Scientific Management :1. Managers must study the way that workers perform their tasks and understand the job knowledge (formal and informal) that workers have, then find ways to improve how tasks are performed. 2. Managers must codify new methods of performing tasks into

3. Managers should hire workers who have skills and abilities needed for the tasks to be completed, and should train them to perform the tasks according to the established procedures. 4. Managers must establish a level of performance for the

FOUNDATIONS OF THE MANAGEMENT AS AN ART PERSPECTIVE:Practicing managers who believe in management as an art are unlikely to believe that scientific principles and theories will be able to implemented in actual managerial situations. Instead, these managers are likely to rely on the social and political environment surrounding

For example, as a contrast to the example given previously, a manager who has a problem with an employee's poor work performance is likely to rely on his or her own experiences and judgment when addressing this issue. Rather than having a standard response to such a problem, this manager is likely to consider a broad range of social and political factors, and is likely to take

Henry Mintzberg is probably the most well-known and prominent advocate of the school of thought that management is an art. Mintzberg is an academic researcher whose work capturing the actual daily tasks of real managers was ground breaking research for its time.

Mintzberg, through his observation of actual managers in their daily work, determined that managers did not sit at their desks, thinking, evaluating, and deciding all day long, working for long, uninterrupted time periods. Rather, Mintzberg determined that mangers engaged in very fragmented work, with constant interruptions and rare

Thus, Mintzberg revolutionized thinking about managers at the time that his work was published, challenging the prior notion that managers behaved rationa and methodically. This was in line with the perspective of management as an art, because it indicated that managers did not necessarily have routine behaviors throughout their

Another scholar that promoted the notion of management as an art was David E. Lilienthal, who in 1967 had his series of lectures titled Management: A Humanist Art published. In this set of published lectures, Lilienthal argues that management requires more than a mastery of techniques and skills; instead, it also requires that managers understand individuals and their motivations and help them achieve their goals.

Lilienthal believed that combining management and leadership into practice, by not only getting work done but understanding the meaning behind the work, as effective managerial behavior. Thus, he promoted the idea of the manager as a motivator and facilitator of others. This manager as an artist was likely to respond differently to each employee and

Another proponent of the management as art school of thought is Peter Drucker, famed management scholar who is best known for developing ideas related to total quality management. Drucker argues that the discipline (i.e., the science) of management attempts to create

He is critical of the assumptions that make up the management paradigm, because these assumptions change over time as society and the business environment change. Thus, management is more of an art, because scientific "facts" do not remain stable over time.

Management vs administration:• Strategic management process: Goal setting Strategic planning

Strategy formulation

administration Strategy implementation Strategic control

Management:- the process of planning, decision making, organizing, leading, and controlling an organization’s human, financial, physical and information resources in an efficient and effective manner.

• Administration:Administration can be defined as the universal process of organizing people and resources efficiently so as to direct activities toward common goals and objectives

• Sponsor roles:

Managerial function:

Administrative function:

Leadership function:

Technical function:

Management Skills:In order to perform the functions of management and to assume multiple roles, managers must be skilled. Robert Katz identified three managerial skills that are essential to successful management: technical skills, human skills, and conceptual skills.

Technical skill involves process or technique knowledge and proficiency. Managers use the processes, techniques and tools of a specific area.

• Human skill involves the ability to interact effectively with people. Managers interact and cooperate with employees.

Conceptual skill involves the formulation of ideas. Managers understand abstract relationships, develop ideas, and solve problems creatively. Thus, technical skill deals with things, human skill concerns people, and conceptual skill

• manager's level in the organization determines the relative importance of possessing technical, human, and conceptual skills. • Top level managers need conceptual skills in order to view the organization as a whole.

• Supervisors need technical skills to manage their area of specialty. • All levels of management need human skills in order to interact and communicate with other people successfully.

• Skills distribution:-

L E V E L S:

TOP MANAGEMENT

MIDLE MANAGENENT

SUPERVISION

SKILLS:

CONCEPTUAL

HUMAN

TECHNICAL

SKILLS DISTRIBUTION AT VARIOUS MANAGEMENT LEVELS:-

As the pace of change accelerates and diverse technologies converge, new global industries are being created (for example, telecommunications). Technological change alters the fundamental structure of firms and calls for new

Organization and its pervasiveness:• Organizations are social units deliberately constructed and reconstructed to seek specific goals. Corporations, armies, schools, hospitals, churches, and prisons are included; tribes, classes, ethnic groups, friendship groups and families

– 1 Divisions of labor, power, and communication responsibilities, divisions, which are not random or traditionally patterned, but deliberately planned to enhance the realization of specific goals.

– 2) The presence of one or more power centers which control the concerted efforts of the organization and direct them toward its goals; these power centers also must review continuously the organization’s performance and re – pattern its structure, where necessary, to increase

– 3) Substitution of personnel i.e., unsatisfactory persons can be removed and others assigned their tasks. The organization can also recombine its personnel through transfer and promotion.)

• The book follows the definition of organizations as social units that pursue specific goals, which they are structured to serve, under some social circumstances. Therefore, the book has three foci: organizational goals; organizational structure;

THE NATURE OF ORGANISATIONAL GOALS :• An organizational goal is the desired state of affairs, which the organization attempts to realize. The organization may or may not be able to bring about this desired image of the future. But if the goal is reached, it ceases to be a guiding image for the organization and is

• The real goals of the organization are those future states toward which a majority of the organization’s means and the major organizational commitments of the participants are directed, and which, in cases

How goals are set: there are many factors that enter into the struggle to determine an organization’s goals. Organizational departments or divisions often play a prominent role in the process. Personalities are another important determinant. When a

• The danger of ‘over – measurement”: Organizations are constructed to be the most efficient and effective social units. The actual effectiveness of a specific organization is determined by the degree to which it realizes its goals. The efficiency of an organization is determined by the amount or

• When an organization has a goal, which is limited and concrete, it is comparatively easy to measure effectiveness. But when we come to organizations whose output is not material, statements about effectiveness are extremely difficult to validate. The same problem attends measuring

• The distortion of goals that arises from over – measurement of some aspects of the organizations output to the detriment of others is a larger category of distortion that arise in the relations of organizations to their goals.

• Distortions due to over measurement are comparatively mild, since the main goals of the organization remain intact, though certain aspects of these goals become over – emphasized at the expense of other sometimes more important ones. Goals –

GOAL MODELS AND SYSTEM MODELS:-

• The goal model approach defies success as a complete or at least a substantial realization of the organizational goal. It is not the only means of evaluating success. Rather than comparing existing organizations to ideals of what

Using a system model we are able to see a basic distortion in the analysis of organizations that is not visible or explicable from the perspective of goal – model evaluation. The latter approach expects organizational effectiveness to increase with the assignment of

therefore any theory of organizations in general must be highly abstract. The system model is not free from drawbacks; it is more exacting and expensive when used for research. The goal model requires that the researcher determine the goals the organization is pursuing – and no more. A well – developed

– An awareness of the needs of the organization to operate successfully will guide the researcher who is constructing a system model for study of a specific organization. At present, organizational theory is generally constructed on a high level of abstraction, dealing mainly with general

The differences among various organizational types are considerable Instead of focusing on goals of the delivery service organizations, three indices were constructed each measuring one basic element of the system.

• These were; • 1) Station productivity. 2) Intra organizational strain as indicated by the incidence of tension and conflict among organizational subgroups.

The classical goals theory: • The Classical administration theory, presented in works by Gulick ad Urwick, made the division of labor its central tenet. The Classical approach rests firmly on the assumption that the more a particular job can be broken down into its simplest

• The division of labor has to be balanced by a unity of control. • The tasks have to be broken up into components by a central authority in line with a central plan of action; the efforts of each work unit need to be supervised; and the various job efforts leading to the final product have to be coordinated. This leads to a pyramid of control leading up to

There are one to four basic principles which propose for specialized work in the organization and which will lead to optimal division of labor and authority:-

– 1) The first principle stated that specialization should be by purpose of the task. Workers who serve similar goals and sub- goals in the organization should be attached to the same organizational division. There would be as many divisions in the organization as there are

– 2) The second principle of specialization suggests that all work based on a particular process should be grouped together, since it must share a special fund of knowledge and requires the use of similar skills or

– 3) The third principle states that specialization according to type of client is another basis for division of labor. – 4) The fourth principle says that jobs performed in the same geographical

DECISION – MAKING THEORY :

• The theory of decision – making is a non- organizational theory that deals with decisions made by individuals. Decision – making itself is divided in a way that makes the higher- in- rank set the wider policy lines while the lower echelon administrators break the policy down into more detailed decisions. In this way, the whole organization can be viewed as an efficient tool,

– ORGANISATION STRUCTURE :

• The structuralist approach is a synthesis of Classical school (formal) and the Human relations (informal). The structuralist sees the organization as a large, complex social unit in which many social groups interact.

• Two groups within the organization whose interests frequently come into conflict are management and the workers. The structuralists attempt to find some clues to the source of dissatisfaction of the workers:

1) It is observed that the modern factory hand is alienated from his work since he owns neither the means of production nor the product of his labor. 2) The worker has little conception of the whole work process or of his contribution to it; his work is meaningless.

• 3) He has little control over the time at which his work starts and stops or over the pace at which it is carried out.

• THE BUREAUCRATIC STRUCTURE :

• The features of the bureaucratic structure are as follows:• 1) It is a continuous organization of officials bound by rules, which facilitate standardization and equality in the treatment of many cases.

•2) It provides a specific sphere of competence which involves:• a) a sphere of obligations to perform functions which have been marked off as part of a systematic division of labor, •b) The provision of incumbent with the necessary authority to carry out these functions, and

• 3) The organization of offices follows the principle of hierarchy; each lower office is under the control and supervision of a higher one. • 4) The rules which regulate the conduct of an office may be technical rules or norms

• 5) It is a matter of principle that the members of the administrative staff should be completely separated from ownership of the means of production or administration. • The rules which regulate the conduct of an office may be technical rules or norms

• 6) In order to enhance the organizational freedom, the resources of the organization have to be freed of any outside control and the incumbent cannot monopolize the positions. • 7) Administrative acts, decisions, and rules are formulated and

• ORGANISATIONAL CONTROL AND LEADERSHIP :

• Classification of means of control: The means of control applied by an organization can be classified into three analytical categories • a) Physical control: the use of gun, a whip or a lock, the threat to use physical sanctions is all

• b) Material control: Material reward consists of goods and services. The granting of money, which allows one to acquire goods and services, is classified as material because the effect on the recipient is similar to that of material means. The use of material means for control

• c) Symbolic control: these include normative symbols, those of prestige and esteem and social symbols those of love and acceptance. The use of symbols for control purposes is referred to as normative, normative – social, or social – power.

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