Definition Of Management Management And Administration Nature Purpose Science Or Art Development Of Management Thought Contribution Of Taylor And Fayol Types Of Business Organization
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Principles and practices of Management
Definition of Management Management and Administration Nature Purpose Science or Art Development of Management Thought Contribution of Taylor and Fayol Types of Business Organization.
Art
of making things done through others Mary peter follet
Knowing what to do and ensuring whether achieved in the cheapest way – F.W.Taylor
Nature & purpose
Process of designing & maintaining an environment in which individuals, working together in groups, efficiently accomplish selected aims. Helps the people to carry out the managerial functions of planning, organizing, staffing, leading and controlling Applies to any kind of organization Applies to managers at all organizational level Helps the manager to create surplus output Effective and efficient productivity (output/ input)
Interpersonal role – figurehead, liaison, leader Information role – recipient, disseminator, spokes person Decision role – entrepreneurial, disturbance handler, resource allocator, negotiator.
Particulars
Administration
Management
• Nature
•Thinking Function
•Doing Function
•Scope
•Determines broad objectives and policies
•Implements plans and achieves goal through people
•Level
•Top level function
•Skills •Represents •Usage
•Middle and lower level function •Conceptual and •Technical and human skill human skill •Owners who invest •Paid individuals capital who work for remuneration •Government , •Business Military, organization Educational
4
Administration
Management
5
Top Ten Companies
General Electric -Fairfield, CT, U.S. Procter & Gamble -Cincinnati, OH, U.S. Nokia -Espoo, Finland Hindustan Unilever -Mumbai, India Capital One Financial -McLean, VA, U.S. General Mills -Minneapolis, MN, U.S. McKinsey IBM -Armonk, NY, U.S. BBVA (Banco Bilbao Vizcaya Argentaria) -Bilbao, Spain Infosys Technologies -Bangalore, India
Management as a Science - It is a systematized body of knowledge - It is a Social Science - It is Scientific management SCIENCE –WHY? Methods of inquiry should be systematic Information can be ordered and analyzed. Results are communicable
Management as a Art ART-HOW? Managing as practice -It is concerned with application of knowledge - How to do things creatively and skillfully
6
Top Managers Chief Executive Officer
Vertical Specialization
Middle Managers Department managers Low level Managers Supervisor Office Mangers Workers Laborers Technicians
99 99 9 11 99 99 11 9
Horizontal Specialization
12
Companies which are running into success create surplus through productivity operations . Productivity =inputs/outputs Effectiveness and efficiency
F.w.taylor (1856-1951) Performing task could be determined by developing a true science of management Individual worker can be suitable task and responsibility Worker should be scientific education and development Cooperation between the management labour
Replacing the rule of thumb with science Harmony in group action Co-operation Maximum output Development of workers
1861-1919 50 –cent of bonus PERT, CPM Navy louts 123 Gannt chart
1878 -1972 Motion study Fatigue study Workers welfare ‘
1864-1920 Clearly defined regulations Technical competency Performance appraisal
1868-1933 Human relations Organizational structure Behavioral management
1886-1961 Personal goal and informal group Team and team work (motoral ,dupout ,GE)
1924 to 1933 Western electric company Relation ship between the change in the work place and productivity
Hawthorne experiment Study Changes in illumination
Relay assembly test.
Outcome Productivity increased(1927-32)
Motivational effect of the interest being shown in them
productivity varied(2009)
Other factors such as the weekly cycle of work or the seasonal temperature and so the initial conclusions were overstated and the effect was weak or illusory
1. Increased productivity
The workers felt that they are being watched
1.Changes in wages (Paid for overall Production) 2. Increased the break time (two 5 minutes, two 10 minutes, six 5 minutes)
2. Increased- Increaseddecreased
3.Providing food during breaks
3. Increased
4.Shortening the day time for 30 Minutes, Shortening more, returning to original
4.Increased- increasedpeaked up
Interview with workers
Upward communication increase positive attitude in the work environment
The workers feel pleased that their ideas are being heard.
Bank wiring room experiments
Productivity decreased
Feared that some of them would be fired out
1841-1925 Founder of classical organization Managerial behavior Technical –relating production Commercial –buying, selling Financial –capital and optimum use Security-protection of property Accounting-statistics Managerial
Division of work Authority and responsibility Discipline Unity of command Unity of direction Subordination of individual interest to the general interest Remuneration of personnel Centralization Scalar chain Order Equity
Stability tenure Initiative Esprit decrops-union strength
Describe the three branches of the traditional viewpoint of management: ◦ Bureaucratic ◦ Scientific ◦ Administrative
Explain the behavioral viewpoint’s contribution to management.
26
27
Bureaucratic Management Scientific Management Administrative Management
Copyright © 2005 by South-Western, a division of Thomson Learning All rights reserved
28
Refers to the use of rules, a set of hierarchy, a clear division of labor, and detailed procedures. ◦ Rules – formal guidelines for the behavior of employees on the job. ◦ Impersonality – employees are evaluated according to rules and objective data. ◦ Division of Labor – splitting work into specialized positions.
Copyright © 2005 by South-Western, a division of Thomson Learning All rights reserved
29
◦ Hierarchical Structure – ranks jobs according to the amount of authority in each job. ◦ Authority – who has the right to make decisions of varying importance at different organizational levels. Traditional authority Charismatic authority Rational,legal authority
◦ Lifelong Career Commitment – both the employee and the organization view themselves committed to each other over the working life of the employee. ◦ Rationality – is the use of the most efficient means available to accomplish a goal. Copyright © 2005 by South-Western, a division of Thomson Learning All rights reserved
30
Benefits ◦ Efficiency ◦ Consistency ◦ Functions best when routine tasks are needed
Drawbacks ◦ ◦ ◦ ◦ ◦
Rigid rules and red tape Protection of authority Slow decision making Incompatibility with changing technology Incompatibility with workers’ values
Definition of Management Management and Administration Nature Purpose Science or Art Development of Management Thought Contribution of Taylor and Fayol Types of Business Organization.
Art
of making things done through others Mary peter follet
Knowing what to do and ensuring whether achieved in the cheapest way – F.W.Taylor
Nature & purpose
Process of designing & maintaining an environment in which individuals, working together in groups, efficiently accomplish selected aims. Helps the people to carry out the managerial functions of planning, organizing, staffing, leading and controlling Applies to any kind of organization Applies to managers at all organizational level Helps the manager to create surplus output Effective and efficient productivity (output/ input)
Interpersonal role – figurehead, liaison, leader Information role – recipient, disseminator, spokes person Decision role – entrepreneurial, disturbance handler, resource allocator, negotiator.
Particulars
Administration
Management
• Nature
•Thinking Function
•Doing Function
•Scope
•Determines broad objectives and policies
•Implements plans and achieves goal through people
•Level
•Top level function
•Skills •Represents •Usage
•Middle and lower level function •Conceptual and •Technical and human skill human skill •Owners who invest •Paid individuals capital who work for remuneration •Government , •Business Military, organization Educational
4
Administration
Management
5
Top Ten Companies
General Electric -Fairfield, CT, U.S. Procter & Gamble -Cincinnati, OH, U.S. Nokia -Espoo, Finland Hindustan Unilever -Mumbai, India Capital One Financial -McLean, VA, U.S. General Mills -Minneapolis, MN, U.S. McKinsey IBM -Armonk, NY, U.S. BBVA (Banco Bilbao Vizcaya Argentaria) -Bilbao, Spain Infosys Technologies -Bangalore, India
Management as a Science - It is a systematized body of knowledge - It is a Social Science - It is Scientific management SCIENCE –WHY? Methods of inquiry should be systematic Information can be ordered and analyzed. Results are communicable
Management as a Art ART-HOW? Managing as practice -It is concerned with application of knowledge - How to do things creatively and skillfully
6
Top Managers Chief Executive Officer
Vertical Specialization
Middle Managers Department managers Low level Managers Supervisor Office Mangers Workers Laborers Technicians
99 99 9 11 99 99 11 9
Horizontal Specialization
12
Companies which are running into success create surplus through productivity operations . Productivity =inputs/outputs Effectiveness and efficiency
F.w.taylor (1856-1951) Performing task could be determined by developing a true science of management Individual worker can be suitable task and responsibility Worker should be scientific education and development Cooperation between the management labour
Replacing the rule of thumb with science Harmony in group action Co-operation Maximum output Development of workers
1861-1919 50 –cent of bonus PERT, CPM Navy louts 123 Gannt chart
1878 -1972 Motion study Fatigue study Workers welfare ‘
1864-1920 Clearly defined regulations Technical competency Performance appraisal
1868-1933 Human relations Organizational structure Behavioral management
1886-1961 Personal goal and informal group Team and team work (motoral ,dupout ,GE)
1924 to 1933 Western electric company Relation ship between the change in the work place and productivity
Hawthorne experiment Study Changes in illumination
Relay assembly test.
Outcome Productivity increased(1927-32)
Motivational effect of the interest being shown in them
productivity varied(2009)
Other factors such as the weekly cycle of work or the seasonal temperature and so the initial conclusions were overstated and the effect was weak or illusory
1. Increased productivity
The workers felt that they are being watched
1.Changes in wages (Paid for overall Production) 2. Increased the break time (two 5 minutes, two 10 minutes, six 5 minutes)
2. Increased- Increaseddecreased
3.Providing food during breaks
3. Increased
4.Shortening the day time for 30 Minutes, Shortening more, returning to original
4.Increased- increasedpeaked up
Interview with workers
Upward communication increase positive attitude in the work environment
The workers feel pleased that their ideas are being heard.
Bank wiring room experiments
Productivity decreased
Feared that some of them would be fired out
1841-1925 Founder of classical organization Managerial behavior Technical –relating production Commercial –buying, selling Financial –capital and optimum use Security-protection of property Accounting-statistics Managerial
Division of work Authority and responsibility Discipline Unity of command Unity of direction Subordination of individual interest to the general interest Remuneration of personnel Centralization Scalar chain Order Equity
Stability tenure Initiative Esprit decrops-union strength
Describe the three branches of the traditional viewpoint of management: ◦ Bureaucratic ◦ Scientific ◦ Administrative
Explain the behavioral viewpoint’s contribution to management.
26
27
Bureaucratic Management Scientific Management Administrative Management
Copyright © 2005 by South-Western, a division of Thomson Learning All rights reserved
28
Refers to the use of rules, a set of hierarchy, a clear division of labor, and detailed procedures. ◦ Rules – formal guidelines for the behavior of employees on the job. ◦ Impersonality – employees are evaluated according to rules and objective data. ◦ Division of Labor – splitting work into specialized positions.
Copyright © 2005 by South-Western, a division of Thomson Learning All rights reserved
29
◦ Hierarchical Structure – ranks jobs according to the amount of authority in each job. ◦ Authority – who has the right to make decisions of varying importance at different organizational levels. Traditional authority Charismatic authority Rational,legal authority
◦ Lifelong Career Commitment – both the employee and the organization view themselves committed to each other over the working life of the employee. ◦ Rationality – is the use of the most efficient means available to accomplish a goal. Copyright © 2005 by South-Western, a division of Thomson Learning All rights reserved
30
Benefits ◦ Efficiency ◦ Consistency ◦ Functions best when routine tasks are needed
Drawbacks ◦ ◦ ◦ ◦ ◦
Rigid rules and red tape Protection of authority Slow decision making Incompatibility with changing technology Incompatibility with workers’ values
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