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UNIT - 1 MANAGEMENT Introduction Management as a concept is universal and has been in use over the ages although the

word Management in todays sense of the term was not in vogue then. Evidently without using the principles of management it would not have been possible to construct the Great Wall of China or the Ta Mahal or the numerous ancient temples all over the world. !n the olden days where most businesses" predominantly farming and smithy" were family businesses the managing responsibility passed on from the head of the family to the ne#t in line capable of handling the activity. !t is only during and after the industrial revolution in the later half of the $%th Century that factories and plants started coming up for manufacturing goods for public use. &esources ' Men" Machines" Materials and Money came together and needed to be properly utili(ed. This was the time the importance of management" its scope and functions started coming into focus. Management is all the more relevant in todays et)set world where time is of essence and resources have enhanced values either because of e#cessive demand or their short supply. The need for management in a public activity arose from *uring +lant set up ) ,eed to distribute the responsibility of setting up of the factory - plant ) ,eed for proper planning" procurement" construction" erection of the plant ) ,eed for monitoring the progress of wor. and deployment of the resources ) ,eed for proper communication and effective coordination to ensure speedy setting up ) ,eed to tac.le problems that arise" innovate" implement new ideas and techni/ues. While &unning the +lant ) ,eed to ensure that all materials" m-cs and e/uipment are in place to convert into product ) ,eed to ensure that sufficient men are available to carry out the wor. ) ,eed to evaluate the wor. done" its /uality and deploy correct people for the ob ) ,eed to impart .nowledge and training to the people for the wor. on hand. ) ,eed to ensure that there is contentment of all with regard to all aspects ' starting from the wor. atmosphere and amenities provided to production" sales" profit" salaries and wages. ) ,eed to identify wor.ers aptitudes for different obs ' wor.ing" supervising" leading" etc. ) ,eed to set targets. Monitor" control and direct activity towards it. ) ,eed for inspection to ensure /uality goods and delivery of product on schedule ) ,eed to study customer need" .eep them satisfied and get customer feed bac.. ) ,eed to incorporate and implement suitable changes based on the feed bac.. Meaning Management is a creative process which integrates and utili(es various available resources effectively and efficiently to accomplish the goals of an organisation. !t involves planning" implementation" e#ecution" monitoring" controlling and directing various activities in achieving the goal through people" who in the process earn a living and satisfy their basic needs. Management involves on the one hand getting the best out of the people while catering to their needs and .eeping them contended and on the other hand utili(ing the resources in the best and most efficient manner to ma#imi(e the profits of the company. Where ever groups of people are involved in wor. towards a common goal there is need for management. *ifferent e#perts have defined management in different ways. 0ome of them are 1 Management is the conduct of affairs of business" moving towards its ob ectives through a continuous process of improvement and optimi(ation of resources ' Henri Fayol Management is the process of designing and maintaining an environment in which individuals" wor.ing together in groups" efficiently accomplish selected aims ) Koontz Management is an art of getting things done through people ) Mary Parker Follet Managers give directions to their organisations" provide leadership and decide how to use organi(ational resources to accomplish goals ) Peter Drucker Management is 2ttainment of Management goals in an effective and efficient manner through planning" organi(ing" leading" and controlling organi(ational resources ) ic!ard "# Dra$t Management is the comple# of continuously coordinated activity by means of which any underta.ing administration - public or private service conducts its business ) I"%

Management is guiding human and physical resources into a dynamic" hard hitting organisation that attains its ob ectives to the satisfaction of those being served and with a high degree of morale and sense of attainment on the part of those rendering the service ' "a&rence A# Alle'y Management has also been defined as the accomplishment of goals through others. Management is an art of getting things done through people using the companys resources for attaining its goals" where the ob gets done willingly and the people involved are also satisfied in all respects ' 2. 0. +rabhu" 2!T 3aculty Management is 44. 44. 44.. 444. 45 6 0em 0tudent" 2!T 7&e/uest each one of you to come up with your definition of management8 (!y )tudy Manage*ent at All + The study helps you wor. with people better and there)by get the best out of them and be more successful. !t helps you lead people" teach them" communicate with them" guide them" etc. !t also teaches you how to interact with superiors" understand them" gain .nowledge" implement instructions" etc. Nature and ,!aracteri)tic) o$ Manage*ent 9ased on the various definitions of management the Nature o$ Manage*ent can be e#plained to have the following features1 Management applies to any .ind of organisation 2ll managers carry out the same functions in any organisation ' planning" implementing" controlling The principles of management applies to all managers at all levels in the organisation The aim of all managers is the same ' to create a surplus. Managing is concerned with productivity which implies effectiveness and efficiency. The ,!aracteri)tic) o$ Manage*ent can be considered to be as under1 ) !t cannot be seen but its presence or lac. of it is felt - reflected in production - sales - revenue ) !t is universal and is applicable to all si(es and forms of organisations ) !t is a group activity and it involves getting things done with and through others ) !t is goal oriented and all actions of management are directed towards achieving specific goals ) Management is a science as well as an art ) Management is now emerging to be a profession ) !t is multi)disciplinary : has contributions from +sychology" 0ociology" 2nthropology" etc. ) !t should be stable" transparent and its approach to the goal simple yet effective. ) !t should be resilient as well as responsive to e#ternal variants vi(. economic" technological" social" political" ethical" 4 factors which affect production and achievement of goal ) !t should provide conducive wor. atmosphere as well as all basic amenities vi(. toilets" baths" canteen" etc. !T !0 2 *;,2M!C +<E,=ME,2 ' 0ituations continuously change. ,o two situations are identical. ,o two managers handle the same situation identically E$$iciency and E$$ecti-ene)) E$$iciency refers to the getting the ma#imum output with the least inputs. Managers have to deal with resources vi(. people" materials" tools" money" machines" 4 they are concerned with the efficient use of all resources. Therefore efficiency becomes an inherent element in the management process. ,ormally managers try to gain efficiency by reducing production time" machine hours" number of people used" re ection" inventories" etc. on the one hand while on the other increasing output" gaining time by clubbing deliveries or other operations. E$$ecti-ene)) is concerned with the achieving of the goals set by the organisation. !t refers to the end results. Efficiency on the other hand refers to how the end results are achieved. While trying to save money if a manager adopts a slow and time consuming process and the delivery of the product is so delayed that the sales is affected" it would not be considered effective. 7Christmas 0ales8 0imilarly is he puts more people on the ob and manufactures a number of items well in advance and in large /uantities and is unable to sell the items at competitive prices" it is still considered to be ineffective. 7Eg. *eveloping a ball point pen for application in space where there is no gravity. >02 spent an enormous amount of ? $@ million over a decade in research and development to develop such a pen. >00& decided to use pencils. The difference was in the fi#ing of the goal. >02 wanted to develop a pen that would write in space. >00&s goal was to have a writing implement in space. Therefore it becomes important to specify the re/uirement and fi# our targets correctly.8

.alance /et&een e$$iciency and e$$ecti-ene)). Management must always strive to stri.e a balance between the two for the best of the company. When effectiveness and efficiency go hand)in)hand it spells success. Where the balance is not available it has been found that there is inefficiency causing wastage of resources and ineffectiveness in goals not achieved. Thus there is failure. 0co'e and Functional Area) o$ *anage*ent Management is applicable not ust to industries - businesses - plants. !t also applies to all activities in day to day life as well" be it a sport event" a social function" a family gathering or alumni meeting. !t applies to every individual" to a small group" to an industry or a large business conglomerate. The scope of management is very wide. The following areas would re/uire management ) *evelopment) +ersonnel ) +urchase ) +roduction ) Mar.eting ) *istribution ) 0ales ) Transport ) =ffice ) 3inance ) 0upply Chain 9usiness ) Maintenance ) Crisis ) 2fter sales service ) Customer feed bac. 2t a personal level there would be ) 0elf Mgmt. ) <ome Mgmt. ) Child Mgmt. ) <ome 3inance mgmt. ' Contingency Mgmt. The scope of Management is such that now a days it is also considered to be a. 2s an Economic &esource 0ince managers use the resources efficiently and effectively in the process of using the A Ms ' Money" Materials" Men" Machines and Methods and ensure that the companys goals are met and surplus is created" management is considered to be an Economic &esource. b. 2s a system of 2uthority !n Management there is a proper hierarchy and defined line of control. Therefore it is considered to be a system of 2uthority. c. 2s a separate Class 0ociologists consider the modern day management as a distinct class. Management class means aof managers at all levels of an organisation" all wor.ing towards a common ob ective ' =rganisational goals. !t is a .nown and accepted fact that Management class is responsible for the either the success or failure of an organisation. !n an industry the $unctional area) o$ Manage*ent could be grouped to be1 a. Mar.eting Management is a management process in which the goods move from Concept to the customer. 2ny business starts with the need for the item for the customer to his satisfaction. Mar.eting management involves four elements which are termed as the B +s ' 7$8 !dentification" selection and development of a Product" 7@8 determining its selling Price" 7C8 0election of a distribution channel for the item or service to reach the customers Place and 7B8 development and implementation of a Promotional strategy b. <uman &esource Management is defined as ac/uiring" developing" motivating and maintaining human resources to attain organisational goals. !t includes recruiting" selection" training" deployment" compensation" employee relations " employee welfare" career development" etc. c. 3inance Management is planning" directing" monitoring" organising and controlling of monetary resources of the organisation. !t deals with arranging for funds and allocation such that all" short term as well as long term needs are met. d. +roduction Management deals with the procurement of materials" tools" machinery" e/uipment and converting the materials into final products or service using the resources available. Function) o$ Manager) The functions of Managers or Management Cycle could be considered have the following functions1 ) +lanning ) =rganising ) 0taffing ) *irecting 7Deading8 ) Controlling +lanning is a function of the E#ecutive Devel or the *ecision Ma.ing Devel. !t involves setting missions" goals" ob ectives" 4 and the actions to be ta.en to achieve them. !t re/uires decision ma.ing involving choosing future course of action from alternatives available today. 0ome of the activities of planning are1 ) 3i#ing short and long term goals for the organisation ) 0electing policies and strategies towards achieving the same ) *eciding in advance what to do" where to do" how to do" when to do" who has to do" etc. ) !t is the activity of bridging the gap between where we are now and where we want be in future

=rganising is that part of management which establishes structure of the organisation and the roles people have to play within it. +roviding all necessary items and e/uipment for the organisation to function. This includes raw materials" tools" machines" personnel. The organi(ational structure also helps in creating a good environment for the people to function or perform well. =rganising involves1 ) *efining of different activities to procure goals ) Grouping these activities into departments ) 2ssigning such depts.. or group of activities to managers ) Empowering the managers by delegating authority ) +roviding interaction between managers and coordination of activity 0taffing is actually a <uman &esource Management function. 9ut all managers ought to have this management /uality since they are aware that no other resource can be successfully utili(ed without the human resource. They should also bear in mind that the company should neither be under staffed nor over staffed for the goals and targets to be met profitably. 0electing people for different obs" deploying them" accessing their wor." training them" fi#ing consideration or incentives for their wor. for ensuring their continued service is part of staffing. The activities could be summari(ed to be ) 3inding and selecting right people for the ob ) *eployment of the personnel and assessing their wor. ) +roviding training to develop s.ills for present and future obs and redeployment ) 2ppraising staff" planning their growth. ) Creating new position" promoting people for them to be motivated at all times to deliver *irecting is the ne#t most important function after planning" organising and staffing. *irecting has three facets ' Communication" Deadership and Motivation Communication is the processes of e#changing information" by which one understands the other better. 9etter the communication s.ills the better a manager can direct the activities of the people Deadership is guiding the people towards the goal by e#ample. !t is that /uality which influences the wor. of the subordinates and triggers in them an urge to follow you Motivation is the process by which the employees involved are sufficiently aroused and willing put in their best efforts towards achieving the targets set for them which helps meet the organi(ational goals Motivation could be financial as involving salaries" bonuses" profit sharing" rewards or non)financial involving awards" felicitations" praise" promotions" recognition" ob security" etc. . Controlling involves measurement of activity of subordinates" chec.ing against the targets or goals set and implementing the necessary changes - corrections to .eep the wor. on trac. and at a pace re/uired to achieve the goals set ' /ualitatively" /uantitatively and in time. Controlling necessarily involves three elements ' $. Establishing standards of performance" @. Measuring performance and comparing it with e#isting set standards and C. Ta.ing necessary corrective action to meet standards 7=r to reset standards where the productivity has increased8 +lanning Controlling Management Cycle *irecting =rganisation 0taffing

Manage*ent 1 Ad*ini)tration There is a lac. of agreement between management writers over the meaning of the words Management and 2dministration. =ne group feel that administration is a separate set of people involved in the upper decision ma.ing level while management is the level e#ecuting the decisions of the management" hence the two are different. 2nother group feels that the word Management as a generic term includes administration also. 2ccording to this group the management is divided into two levels ' the upper level and the lower level. The upper level decides and controls while the lower one manages the functions.

!n an industrial scenario 2dministration is that body which decides the corporate policy" sets the target and goals of the organisation" decides on the location" physical si(e and production capacity of the plant" the product mi#" the machinery" the number of departments" the number of people in each department" finance arrangement ) provision" budgeting" allocation" deployment of funds" overall control over production as well as finance its distribution and collection of revenues. =n the other hand Management is the lin. between the administration and the employees who actually wor. to carry out the production activity and meet the goals as set. Employees could be wor.ing directly on machines" in assembly areas" inspection or in offices connected with purchases" stores" issue of tools and materials" billing" sales" mar.eting" transport" service" etc. 0ome consider administration to be a Thin.ing function while management to a *oing function !t must however be understood that principles of management apply to administrative offices also where planning" organising" staffing" directing and control is also applied. Meetings with board members" customers" government bodies" statutory bodies" managers" etc. need to be properly planned" scheduled as well as e#ecuted. The minutes of the meeting need to be recorded. &elevant information need to be circulated to the concerned managers" and so on. The differences between 2dministration and Management may be seen in the table below1 ,!aracteri)tic Ad*ini)tration Manage*ent E$. Main 3unctions +lanning" organising and staffing Deading" motivating and controlling E@. 0tatus 2cts as owner 2cts as an 2gency EC. 0.ills &e/uires good administrative s.ills &e/uires technical : Mgmt. s.ills EB. Devel in the organisation Top Devel Middle or Dower level EA. +osition Managing *irector" CE=" =wner Managers" supervisors" foremen" etc. EF. =b ectives Ma.es policies" ob ectives" goals !mplements the plans and policies to be achieved EG. !nvolvement ,o direct involvement in production *irectly involved in e#ecution of the or services plans and achieving set goals Manage*ent - a 0cience2 Art or Pro$e))ion Management can be called an artH it can also be called a science. !t can be called a techni/ue. Today management has been developed and fine tuned so much that it could be called a +rofession too. !t has all the necessary characteristics vi(. principles" s.ills" techni/ues" training methods" organi(ed associations" organisations" speciali(ed e#perts in the field" ethics and code of conduct" Management 0chools" 4 This certainly ustifies to be called a profession. Management involves getting the best out of people at all times towards achieving the set goals. <ealth" mental conditions" fatigue levels" moods of people vary. <ence handling people is a dynamic situation" continuously varying and getting the best out of them at all times is certainly an art. What a manager has to do" how he has to react" etc. are not e#plained in any boo. since situations and circumstances .eep changing. The manager handling a situation has to respond spontaneously" intuitively. This would differ from manager to manager and from situation to situation. <ence management can be termed an art also. 0cience means truth. !t also means organi(ed .nowledge where the details can be noted" analysed" recorded" statistical data can be formed" applied and used in predicting results" forecastingH forming empirical models for analysis etc. Management can be partly termed to be a science also since most statistical tools could be applied to recorded data and observations for useful conclusions. 9ut at the same time how a manager has to act can never be strictly defined. <e however always has to act ensuring the safety of the employees" the plant" and in the interests of the companys goals and policies. ole) o$ Manage*ent Managers have different roles to play with different people. They play one role when they interact with administrators" subordinates" visitors" customers" etc.H a different role when they solve problems" arbitrate" negotiate" etc.H and yet another role when they act as spo.esman" collect and disseminate information. The roles played by a manager could be broadly classified to be 1 !nterpersonal &oles" *ecision &oles and !nformational &oles.

!nterpersonal &oles played by managers include 3igurehead" Deader and Diaison roles. 2 3igurehead &ole is a casual informal duty performed by managers. !t is a role they play when they attend parties or social functions of employees =& when they entertain customers and ta.e they to lunch or welcome and greet visitors to the plant and escort they round the facility. 2s a Deader a manager guides" motivates" directs and encourages his subordinates. <e also oversees that while the goals of the management are met the needs of the employees are also satisfied. 2s a Diaison man he acts as a lin. between the 2dministration and the employees. <e is also a lin. between the e#ternal people and the <igher >ps whom he .eeps informed of new ideas" methods" techni/ues which if implemented could improve productivity. *ecision &oles played by a manager include four different roles which include role as a &esource 2llocator" that of an 2rbitrator - *isturbance <andler" an Entrepreneur and ,egotiator 2s a &esource 2llocator a manager decides who does what" who get what and how much" who sits where" etc. !n short he distributes the resources and facilities available towards meeting the targets of the company. <e also delegates powers to have a proper line of control for monitoring the wor. being done. 2 2rbitrators-*isturbance <andlers &ole involves a manager in sorting out misunderstandings" sorting out problems between the employees etc during the course of his activity on a day to day basis. This arbitration wor. he not only does for internal problems but also e#ternal cases also involving customers" suppliers etc. 2n Entrepreneurs &ole is displayed by managers when they innovate" come up with new ideas" methods" techni/ues to speed up process and reduce employees fatigue by implementing new igs" fi#tures etc. with a view to meet the company goals. The ideas if not his could be from the .nowledge that he garners while interacting with friends and peers in other industries. This .nowledge he either implements or passes on to the higher ups with a view to .eep the company abreast of changing times. 2 ,egotiators &ole is played by managers when they negotiate on behalf of the employees" their needs with the management. +articularly so when there is an unrest amongst the employees and a discord between them and the management and there are stri.es" grievances and unsettled issues with the trade unions. !nformation &ole is that where the managers act as monitors" spo.esmen and disseminators. 2 manager Monitors the wor. being done. <e gathers information" verifies" chec.s and controls the production - activity. <e also gets information from his colleagues" friends and other managers The role of a spo.esman is played when a manager passes on information about policy decisions - revised targets" goals etc to his subordinates and feeds bac. information of the employees opinion - reaction - moods - trend to the higher ups. +roduction progress information is also passed on by him to the concerned directors - shareholders. 2s a disseminator he passes some of the information directly to his subordinates and to the bosses. "e-el) o$ Manage*ent Devels of Management are three ' Top Management" Middle Management and Dower Management. 2ll level managers however have planning" organi(ing and directing functions Top Management could be considered to consist of Chairman" Managing *irector" *irectors" +residents" 6ice)+residents" CE=s. These are by and large those who form the policies" set the targets and goals for the company or organi(ation. The s.ills involved in e#ecuting this level of management are conceptual s.ill and design s.ills. They do not ta.e part in the day)to)day activities of the organisation. Middle Management is that part of a management which is formed by a diverse group of managers that handle a variety of departments ranging from personnel" sales" mar.eting" production" purchase" maintenance" finance" transport" etc. 0ome managers could handle more than one department or portfolio at the same time. This level individuals possess a lot of interpersonal interaction s.ills" human relationship s.ills"

Dower Management has unior managers or foremen or supervisors who are officers and ust a step above those who wor.. The are the direct lin. between the middle - upper management and the wor.ing class. They possess a lot of technical s.ill as well as human relations s.ills. The management levels and their s.ills could be reflected in a pyramid shown below1 Top Management Conceptual and *esign 0.ills Middle Management !nterpersonal !nteraction 0.ills" <uman &elations 0.ills Dower Management" 3irst Dine =& 0upervisory Devel Technical 0.ills De-elo'*ent o$ Manage*ent T!oug!t !n the olden days management was neither evident as it is today nor was it taught as a sub ect. ,onetheless it was very much present in all activities even then" though not called by the term Management. <eads of families managed family businesses using the s.ills of hired hands" .ings had well organi(ed armies with proper hierarchy and line of control and responsibilities defined" enormous monuments were built where innumerous labourers would have been deployed" wor. e#tracted and tas.s accomplished. =bviously there ought to have been proper management principles in place for accomplishing the obs. Date $Gth and $%th centuries saw industrial revolution where a lot of inventions and discoveries were made. Technologies emerged over time. *ivision of labour evolved into proper planning" allocation of wor." control and supervision. !t is only in the @E th century when supply was short and demand increased that individual businesses were e#panded into partnerships and later to oint stoc. companies either privately or publicly held. This was necessary for faster production to meet larger demands on time" better utili(ation of labour)s.illed" semis.illed and uns.illed" proper e#ecution of wor. and line of control" 4 2s this development too. place the term Management emerged as a separate field of study which encompassed the all aspects of ma.ing available a product to the public. The management activity could be applied to procurement" personnel" manufacturing" inspection" mar.eting" sales" collection" finance" 4 Thus today we find that management has evolved into a scientific discipline of study and practice. The evolution of management has two parts ' Early Management 2pproaches and Modern Management 2pproaches. Early Manage*ent A''roac!e) Management has a history which is as old as man himself. Evidence of planning and management can be seen in the histories of !ndia and Greece. Iings are .nown to have used concepts of management ' planning" organi(ing" leading and controlling ' in carrying out various activities. Early management approaches could be categori(ed under the following four processes1 +sychological *evelopment +rocess 0cientific Management +rocess 2dministration Management and <uman &elations Movement +sychological *evelopment +rocess was prevailing in the $Gth century or earlier. 0ince proper .nowledge of management s.ills" abilities and training were not available in those days" it was felt that management abilities were inborn. This was ustified by the fact that a few showed e#traordinary management s.ills while others did not. Thus management was based on a psychological process in the early days. 0cientific Management +rocess evolved in the $%th and $Jth centuries. 0cientific development was brought about by the two important factors ' The effort of scientists to demonstrate the application of science and scientific methods to management and The effort to establish standard practices *uring this period of development a scientific approach was adopted !t used scientific methods to establish practices thus achieve higher efficiency. Thus came into e#istence 0cientific Management 2pproach. 3redric. Winslow Taylor" considered to the father of scientific management" conducted a

series of scientific e#periments promoting this approach. 0ome of the e#periments pertained to Wor. 0tudy" *ifferential +ayment" &eorganisation of 0upervision and 0cientific &e/uirement and Training. Wor. 0tudy which includes time and motion study studies various motions involved in a ob and the time re/uired for each motion. This study helped establish a standard time for the ob to be completed after eliminating unwanted motions. This study in the first place was necessitated by the observation that employees did not operate at their full capacity for fear of piece rate for obs being reduced if the production increased. *ifferential +ayment plan or differential piece wor. plan was introduced by 3W Taylor after establishing standard times for different obs. !n this plan a minimum wage was guaranteed for the wor.er who produced a specific /uantity of a ob based on the standard rate. <e was awarded incentive per piece for /uantity produced beyond the standard rate /uantity re/uired. This was thought that incentive would motivate the wor.ers to produce more. &eorganisation of 0upervision ensured that the wor.er ust had to carry out the wor. allotted to him. Earlier to it the wor.er had to select the method by which he preferred to do the ob as well as pic. the right the tools re/uired for it. The reorganisation of the wor. entrusted not ust the ob allocation wor. to the supervisor but also the tas. of specifying the method of doing it as well as providing the correct tools for the tas.. Thus the wor.er ust had to concentrate on the ob and produce the ma#imum /uantity possible during the given time. The tas. of counting the number of pieces done was also removed from the wor.er. Taylor also suggested that each function of a ob needed to have a foreman to oversee the obs being done. 0cientific &e/uirement and Training was thought of and suggested by 3 W Taylor. <e felt that a wor.er when properly trained in a scientific manner he would be able to complete any tas. in a more productive manner. !n other words he would be able to produce more /uantity in lesser time. Thus such training would help develop the wor.ers. !t was also his belief that good cooperation between management and wor.ers would lead to increased production. The concepts suggested by Taylor were further developed by Gantt and Gilbert. Gantt was of the opinion that the incentive scheme suggested by Taylor was not motivating enough. <e suggested that any wor.er if he meets the target of ob in the specified time should be provided with an incentive. 3urther the foreman for each section should be rewarded for every wor.er under him completing the days target. Thus the foreman or supervisor would also pay attention to all the wor.ers and provide sufficient training" guidance to wor.ers to come up to the mar. and more. Gantt also developed the bar chart for recording the achievements wor.ers on a daily basis. This would provided a ready rec.oner to reflect the wor.ers progress. These charts could be used for monitoring and controlling the entire product line or pro ect itself. These charts are followed even to this day. Gilberth has contributed a lot for the development motion and time studies. <e too. motion pictures of all operations and came up with $% basic motions which cover all activity which he called Therbligs. Each motion was identified by a symbol. <is contributions are listed below <e developed motion study with a view to minimi(e waste movements. 9ased on his motion picture studies he developed the 0!M= 70imultaneous motion8 chart. <e evolved principles of motion economy <e established Therbligs which are the fundamental motions in any activity. <e carried out fatigue study e#periments to determine fatigue due to repetitive wor.. 2dministration Management ) <enri 3ayol 7$%B$)$J@A8 is considered to be the father of administrative management. <e used the word 2dministration which until then was considered to be part of Management. <is theory was focused on development of principles applicable to middle and top level managers <is focus was above the shop level production and wor.ers. <is perspective was much wider covering administrative and managerial functions and process of managers. <e suggested that the activity of any business or organisation could be divided into si# groups $. 3inancial 7dealing with search for capital and optimal utilisation8 @. Technical 7production8 C. 2ccounting 7Ieeping proper trac. of all financial transactions8 B. Commercial 7mar.eting activity" buying" selling8 A. Managerial 7=r 2dministration dealing planning" organisation" coordinating" controlling8 and F. 0ecurity 7protection of personnel and property of the company8.

3ayols focus was on Managerial or 2dministrative activity. <e divided managerial activity into five functions ) +lanning" =rganising" Commanding" Coordinating and Controlling. These functions he said were common to all levels" all organisations" any business. 3ayol suggested $B principles of management as guidelines to the process of management practice which are as under1 $. *ivision of Wor. ' Management wor. cannot be done entirely by the owner or board of directors. *istribution of wor. to all levels where specialists could handle the wor. better leads to more wor. being done as well s better. Even at the wor.er level we .now that wor. is divided based on their aptitude" s.ills" level and training" e#perience" 4 @. 2uthority and &esponsibility Management deals with getting the wor. done through others. Therefore it is necessary that managers at different levels have the right to command" give orders and power to e#tract wor.. This is .nown as authority which could be of two types ' one derived from his position and the other by his personal power which is based on his .nowledge" e#perience" ability to lead" moral values" respect he commands" etc. &esponsibility and authority go hand in hand. When one e#ercises his authority he must be ready to bear the responsibility to carry out the wor. in the manner desired as well as face the conse/uences. While most desire authority" they fear responsibility. C. *iscipline is essential for the smooth functioning of any organisation. Most organisations have 0tandard Code of Conduct for employees as well as e#ecutives detailing their authority and responsibilities and the *os and donts which need to be the followed by all concerned. *iscipline in simple terms also means respect to authority" rules : regulations" service agreement. !t involves carrying out the wor. assigned dutifully towards meeting the goals set while giving due respect to the supervisors. *iscipline could be maintained by good supervisors" fair and clear agreements between the employer and wor.ers" udicious applications of punishments or penalties. B. >nity of Command ) Clear cut" well defined line of command. =ne person reports only to one superior. 2 person should get instructions from one person only to avoid confusion due to clashing instructions. This was 3ayols belief. <owever the importance of this restriction was not realised by him in the earlier stages when he recommended that there should be a foreman for each special field and each foreman should give instructions to the wor.er based on his speciality. A. >nity of *irection 2 common sense of direction towards achieving the companys goals and targets. 2ll individuals as well as departments aim and move cohesively towards the common goal. F. 0ubordination of individual interests to general interest ' The interest of every individual in an organisation would be to ma#imi(e ones own satisfaction through money" recognition" status" etc. This might not at all times be in the interest of the companys ob ectives which is to ma#imi(e production. <ence there is a need to subordinate individual interest to the general interest. 2lso" once it is decided upon as to what is to be done and how" pulling towards it cohesively is important although ones individual opinion regarding the what or how was different from the one ta.en. G. &emuneration for all should be fair based business conditions" cost of living" productivity of the employee and the capacity of the organisation to pay. There should not be unfair discrepancies in pay of employees carrying out similar activity unless ustified by more e#perience" additional responsibility etc. 3air wages boosts morale and efficiency and fosters goodwill between employees and management %. Centralisation is when the power is wielded from a central command. When the subordinates are given a freer hand to play and the authority to ta.e independent decisions it is called decentrali(ation. While decentrali(ation would ensure optimum utili(ation of all faculties of the personnel it should be on the basis of the circumstances" si(e of the company" the type of activity and the nature of the organisation structure. !t is mandatory that any decision or action ta.en is towards meeting the companys goals. J. 0calar Chain reflects the line of hierarchy from the top to the bottom. *irection should flow from the top to the bottom through the proper channel at all times e#cept in case of emergencies. 2lso at some times where swift action is re/uired the line could be short)circuited which is .nown as gang plan.. This can be done when two persons of same ran. in different hierarchical line contact each other directly. <owever it is re/uired that they .eep their respective bosses informed. $E. =rder reflects K&ight place for every thing and every man5. !t needs no effort to become disorderly while it ta.es substantial effort to be in order. Correct personnel" right duties and good oraganisation is re/uired for maintaining order. =rder emanates from an individuals personal orderliness" cleanliness" neatness" etc. $$. E/uity reflects that all treated e/ually. 3air ustice with due .indness. !t is e#pected of good managers that they are free of pre udices" personal li.es" disli.es. This ensures good industrial relations which is the foundation for a successful industry.

$@. 0tability of Tenure of +ersonnel reflects that the wor.ers should have a sense of security of their obs. =nly then they would be motivated to wor.. Lob insecurity reflects in bad wor. in view of the wor.er thin.ing about alternative obs and not paying attention to the wor. on hand. $C. !nitiative reflects the freedom to thin. out and e#ecutive new plans or ideas. $B. >nity or Espirit de Coprs. >nion is strength. Management should create the necessary team spirit in the organisation. There should be unity at all levels. =nly when there is team spirit does the team wor. as one and wins.. <armony" understanding" unity" cooperation" are /ualities that add for achieving common goals. 3ayol gave two suggestions towards improving team spirit ' one was that K*ivide and &ule5 policy should be avoided and second as much as possible verbal communications must be used to overcome misunderstandings. Written communication leads to bitterness. <uman &elations Movement Taylors and 3ayols management techni/ues did not achieve the increase in productivity that was anticipated nor did it show the harmony at wor. place sought. The behavior of the wor.ers was unprecedented and appeared to be irrational. This was mainly due to the fact that the theories did not consider the human side of the organisation. The need to focus on the human side was addressed by Elton Mayo which carried out a number of e#periments" spread over a few years" at Western Electric Company plant at <awthorne. The e#periments are popularly .nown as <awthorne e#periments. They are broadly classified as ) ) ) ) !llumination E#periments &elay 2ssembly Test &oom !nterviewing +rogramme 9an. Wiring test &oom

The findings of the e#periment highlighted the fact that any business does not necessarily succeed by ust focusing on technical matters" production" sales" revenues" profit etc. but it is also a socialistic human system. !t is also important to create a humane atmosphere for wor.ers for sustained improved productivity. =ther than salary a wor.er also e#pects a sense of belonging- acceptance by his cowor.ers and superiors" some respect" appreciation" praise" etc. &ather than tas. centered supervisory set up a wor.er centered" participatory supervisory setup wor.s better. Modern Manage*ent A''roac!e)# Modern management could be divided into four categories ' 9ehavioural 2pproach" Muantitative 2pproach" 0ystems 2pproach and Contingency 2pproach 9ehavioural 2pproach is an improvement over the <uman &elations. !n this approach the methods and findings of psychology and sociology are applied for better understanding of organisational behavior. Maslow" McGregor" <er(berg" Warren 9ennis are some of the well .nown behavioural scientists who have contributed significantly to management through behavioural approach. They were of the opinion that the classical rigid method of management was highly mechanical" routine and demanding in nature and thus demorali(ing. They believed in employee motivation" leadership" communication" development" satisfaction" etc. for better management. &ather than a strict hierarchical line of authority they also insisted in a fle#ible structure involving the wor.ers in discussions and meeting while ta.ing decisions since any decision would also affect them. This was e#pected to resolve problems better and give satisfaction to the wor.ers Muantitative 2pproach is also .nown as =perations &esearch 7=&8. !t was developed during the second world war to find solutions to new and comple# problems arising. The need was felt to .now in advance as to how a particular solution would wor. without have adverse effects. The Muantitative approach was developed by a team of interdisciplinary members who formed a mathematical model to simulate any given problem. !t included feasibility" events" costs" constraints" etc. 9ased on an appropriate mi# of the critical parameters the best solution was then adopted. !n todays management re/uirements a similar mi# of critical variants is analysed in a mathematical model and the best possible option adopted for either minimi(ing time" cost or increasing production" increasing profits" etc. Each final re/uirement would throw up a different method of carrying out the tas.. 0ystems 2pproach tries to view the organisation as a whole rather than different separate departments. 2 system is a set of independent parts which when put together forms a single entity or body or organisation

which has a defined tas.. Each constituent part has a specified function and the collective functioning of each and every part achieves the tas. of the organisation. While the classical approach emphasises on structure and tas." the behavioural approach stresses on peoples re/uirements and /uantitative approach is based on mathematical modeling the systems approach is an integrated one and deals with the entire system as one. 2 system can be considered to be an =pen 0ystem when it has interaction with the outside world and a Closed 0ystem when its interaction is within the organisation. Contingency 2pproach is one of the more recent developments in the field of management. !t attempts to integrate all management approaches. Lust as it is .nown that no method can be considered to be the best method and only method" it is .nown that a perfect solution for a given problem in a particular organisation need not necessarily be a wor.able solution in another one. This system re/uires to have managers identify the correct techni/ue or solutions to li.ely problems or circumstances such that in the event of the problem arising the particular techni/ue already decided upon may be applied. Contingency approach could be applied in preparing and organisational structure and applying proper degree of decentrali(ation" in motivational behavioural approaches" in establishing a proper communicative system" resolving conflicts" training" development activities etc. The manage also has the liberty to carry out minor correction while implementing the techni/ue as the situation or problem demands. ,ontri/ution) and "i*itation) o$ 0cienti$ic A''roac!# =b ectives of 0cientific Management The ob ectives of scientific management are1 ) To assess industrial and mar.et tendencies and to regulari(e continuous production ) To perform planned and balanced operations ) To earn more by minimising waste wor. and movements for given material and manpower input ) To provide a healthy and safe wor.ing atmosphere ) To give better opportunity for wor.ers through scientific methods of wor.ing and training ) To develop self reali(ation and self satisfaction of wor.ers by improving their morale ) To ensure a happier and better social life for wor.ers ) To promote ustice among wor.ers by treating them e/ual. !t must however be noted that the incentive theories as suggested by Taylor did not bring as much results as e#pected. The scientific approach had developed a rational approach to solve problems of an organi(ation and contributed to the professionalism of the management. Taylors theories could not be considered completely scientific since there was never K=ne and only one" =& the 9est way5 to do a ob. There could always be another way or method. 0eparation of planning and doing functions coupled with greater speciali(ation led to greater monotony of wor.. 2lso the schemes did not consider the individual wor.ers personal problems away from the wor. area and between wor.ers which had negative affect on the wor.. Contributions Time and motion studies made aware that the use of proper tools and imparting proper training to wor.ers the tas. was made more efficient and rational. The stress laid by scientific management on scientific selection of wor.ers helped concerned people recogni(e that without proper aptitude" ability and training a person cannot be e#pected to perform his tas. properly. The importance that scientific management gave top wor. design" method and layout encouraged management to search for =ne 9est Way of doing the ob. Thus scientific management not only developed a rational approach to solving organi(ational problems but also contributed a great deal to professionalisation of management. Dimitations Taylors beliefs that economic incentives were strong enough to motivate wor.ers proved wrong. +eople not only have financial needs but other needs as well ' such as security needs" social needs" egoistic needs" etc. These needs come into play after the basic monetary needs were met. Time and motion study is not entirely scientific. Two different people timing the same ob may time the ob differently. There is no such thing as =ne 9est Way. ,o two wor.ers could wor. be e#pected to wor. at the same level of concentration - attention" rhythm. They would also have different learning speeds for new obs.

,ontri/ution) and "i*itation) o$ Ad*ini)trati-e A''roac!# Contributions 9oth Taylor and 3ayol both wor.ed towards increasing production. While Taylor wor.ed from the base to the top" 3ayol wor.ed at it from 2pe# to bottom. 3ayols principles were more widely accepted . The theories could be summari(ed to have the following principles among other1 ) There should be a clear line of authority from top to the last employee as in the military ) The authority and responsibility should be communicated in writing ) Each individual should perform only one function ) The span of control of each manager should never e#ceed si#. ) 2uthority can be delegated but not responsibility. ) Mgmt. is a dynamic function involving +lanning" organisation" staffing" directing" controlling ) The principles on which this is based is applicable universally ) 2ll managers perform the same functions although the degree of comple#ities could vary ) Management principles are not restricted to businesses but apply to all group activities. ) Management culture is not culture bound but is transferable from one environment to another. Dimitations 3ormation of small groups having specific obs led to the wor.ers having their own goals which was at odds to that of the management !t led to dissatisfaction of wor.ers since in did not give opportunity to show - use all their abilities !ncreased overhead costs as speciali(ation at one level led to need for better coordination at higher levels Monotony *ifferent methods" e/ually good led to a /uestion of which to method to applyN Theories e#pounded based on a few case studies. ,ot tested empirically. When tested empirically they have been seen to fail. They principles are stated as to what to be done in all circumstances. What is needed is conditional principles of management" !t is incorrect to detail an employees responsibility in every aspect while in a fast changing - turbulent - technological e#plosive situation an employees ob should be as less defined giving scope for change with time and development. The principles are insensitive to employees needs. +articularly social and psychological. +rinciples are based on assumptions that orgs. 2re closed systems while they are in fact open systems. Therefore the rigid structures which the principles tend to create do not wor. under unstable conditions Managerial 0kill) Managers perform a variety of activities and play a variety of roles which are comple# and re/uire different s.ills to perform successfully. 2 s.ill is an individuals ability to convert .nowledge into action. !n order to discharge ones duties a manager must have the following s.ills Technical 0.ills ' includes .nowledge and proficiency in performing activities involving methods" processes" procedures" 4. Inowledge related to speciali(ed fields li.e engineering" computers" accounting" manufacturing" etc. These s.ills are more important at lower levels than at upper management levels since lower management is re/uired to deal directly with people doing technical wor." to instruct" direct and supervise them. <uman &elations 0.ills ' involve ability to wor. well with people both individually as well as in groups. 0ince managers interact with people this s.ill is important. <uman relations s.ill includes ' &ecognition of feelings and sentiments of people" Ludging possible reactions and outcome of different courses of action and Communication" leading" motivating" inspiring 2ll these s.ills are important at all levels of management since interacting with people is involved at all levels. Conceptual 0.ills ' involve ability to thin. and conceptuali(e abstract and comple# situations. This s.ill helps managers to analyse and act according to environmental constraints. These are more re/uired at top management. Competency Competence means a combination of .nowledge" s.ill" behaviour and attitude that contribute to personal effectiveness. =rganisations have developed methods to pic. managers with based on competencies by conducting appropriate tests and interviews. Managerial Competencies are a set of specific .nowledge" s.ills" behavior and attitudes that managers need to be effective in a wide range of obs in different organisations

Mr ,arayanmurthy of !nfosys once said that only about @AO of all engineers are employable. 0ame is the case with M92s. 2nd the percentage is going down every year. WhyN. 9ecause of lac. of proper competencies. Technical s.ill is garnered in colleges which alone doe not get engineers a ob. 0oft s.ills are also re/uired. What is a competencyN 2ny specific s.ill or characteristic inherent in an individual which ma.es him or her successful in a given situation" ob or circumstance is called a competency. 0ome of the competencies re/uired by global managers are 0elf Competency is the overall ability of a person to .now his own strengths and wea.ness" traits" behaviours" attitudes and the capacity to control negative tendencies and develop oneself towards growth Communication Competency refers to the ability to transmit information" feelings" emotions etc accurately. The s.ill involves verbal" non)verbal as well as e)communication. Good listening as well as being sensitive to others is essential for being good communicators *iversity Competency is essential in todays world. 2ny wor. place has a variety based on age" race" gender" ethnicity" s.ills" education" e#perience" religious beliefs" personal life styles etc. *iversity competency involves ability to wor. in diversity" supporting it as well as learning from it. Ethics Competency refers to overall capacity to incorporate values and the ability to distinguish right from wrong" good from bad" do from dont do. Cross Cultural Competency becomes important in modern multinational involvement wher one comes across peoples of different cultural bac.grounds. 2ppreciating the uni/ueness of each culture is important in developing a global mindset or open mindset. !nterpersonal 0.ills and Conflict resolution s.ills or Competency are re/uired while wor.ing in groups or organisation where departmental and hierarchical differences are removed or not defined. Change Competency refers to the ability to adapt to change and change with it. Dot of managers fail because they either cannot cope with it or do not change. 6T> *ec. @EE% 7EF2DA$8 $.a. *efine Management and bring out its nature and characteristics. b. 9riefly e#plain the functional areas on Management c. Dist out the levels of management and also list the roles of management *ec. @EEJ 7EF2DA$8 $.a. What is the scope of Management. b. 9ring out the differences between administration and management. c. E#plain modern approaches to management *ec. @E$E 7EF2DA$8 $.a. *efine Management. E#plain the contributions of Taylor to scientific management b. 9riefly e#plain whether management is a science or art. *ec. @E$$ 7EF2DA$8 $.a. *efine Management. E#plain the functions of Management. b. 9riefly distinguish between administration and management. c. 9riefly e#plain the contributions of 3. W. Taylor to the scientific management Lune. @EEJ 7EF2DF$8 $.a. *efine Management. b. With a neat s.etch e#plain the functions of Management c. 9riefly e#plain the concepts of Modern Management 2pproaches *ec. @EEJ 7EF2DF$8 $.a. *efine Management. *istinguish between 2dministration and Management b. Comment on the true nature of Management. !s it a science or an artN c. E#plain the contributions of 3. W. Taylor to the theory of management Lune. @E$E 7EF2DF$8 $.a. *efine Management. What is the nature and characteristic of Management. E#plain its functions b. !s Management a science" art or professionN E#plain. c. What are the modern management approaches. E#plain briefly the contingency approach of management Lune. @E$$ 7EF2DF$8 $.a. E#plain the different s.ills and their importance at different levels of management b. What are the nature and characteristics of managementN EA $E EA EA EA $E $E $E $E EA EA E@ $@ EF EB E% E% E% EA EG E% EG

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General Course =b ectives At the end of the Course the student should be able to 1# *efine" describe and summari(e what management and leadership is all about. 3# *iscuss the evolution of the management discipline since the !ndustrial &evolution. 4# &ecogni(e the importance of planning in each and every activity which helps an organi(ation to move towards e#cellence 5# Classify the various types of organi(ational structures and show the significant difference between various structures. 6# +oint out the importance of measurement and correction of performance in order to ma.e sure that organi(ational ob ectives and the plans devised to attain them are accomplished 7# *iscuss how entrepreneurs have contributed to the economic development of our country 8# *iscuss how employment problem has been address by the 0mall 0cale !ndustries 9# Enumerate the Government support to 00!s through various Central Government 2gencies" 0tate Government 2gencies and Govt. !ndustrial +olicy &esolutions :# *escribe the importance of a *etailed +ro ect &eport for the success of any industry Unit 1 Dearning =b ectives 2t the end of the unit the student must be able to 1 $. 2ppreciate the nature and scope of management. @. E#plain the scope and functional areas of management C. *iscuss !s Management an 2rt" 0cience or +rofession B. *efine the role and levels of management and the .ills associated with each level A. *iscuss the differences between early and modern management thoughts. &eview Muestions e-ie& ;ue)tion) $. *efine Management and bring out its nature and characteristics. @. 9riefly e#plain the functional areas on Management C. Dist out the levels of management and also list the roles of management B. What is the scope of Management. A. 9ring out the differences between administration and management. F. 9riefly e#plain whether management is a science or art. G. E#plain the contributions of Taylor to scientific management %. E#plain modern approaches to management 2ssignment Muestions $.a. E#plain the different s.ills and their importance at different levels of Management. b. What are the ,ature and Characteristics of ManagementN c. *istinguish between Management and 2dministration @.a. !s Management a 0cience" +rofession or an 2rt N b. What are the Modern management 2pproachesN E#plain Contingency 2pproach c. *efine Management. E#plain functions of Management C.a. E#plain 3 W Taylors contribution to Management. b. E#plain <enri 3ayols contribution to Management. 7%8 7G8 7A8 7A8 7G8 7%8 7$E8 7$E8

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