1 Perspective Management

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Session 1

Aug 06, 2012

Perspective Management

Session 1

Prof. Chhavi Gupta


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Reference Books Essentials of Management by Koontz & Weihrich

Management By Robbins & Coulter


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Scheme of Assessment

Perspective Management: 50 Marks

Internal Assessment: 20 marks

End-term Examination: 30 marks

Internals

Best 2 of 3 class tests ( 5*2= 10 marks)

Best 1 of 2 Assignments/ Presentations (5 marks)

Attendance, Class Participation and Overall Conduct (5

marks)

End Term Examination

Theory/Concepts plus application based


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Session Contents Learning Objectives

A. Introduction to management Various

interpretations and facets of management

B. The evolution of management thought

C. The organizational environments (PESTLE)

D. Managerial Functions, Roles and Skills

E. Social and Ethical responsibility of managers


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What do we mean by Management?


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A. Various Facets of Management

TopManagement

Middle

Management

LowerManagement/

Supervisors

Management as a system of authority

Interrelationships


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Management as an Economic Resource

One of the factors of production

Unifying force between money, materials, manpower, methods,

machinery

MANAGEMENT

Manpower

Materials

MachineryMethods

Money

Management is the

force that unifies

human as well asnon-humanresources in the

service of the

organizationalgoals.

It is a process of

getting results

with and through

people.


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Management as a discipline

MANAGEMENT

PsychologySociology

Economics

Anthropology

PoliticalScience

OperationsResearch Marketing

Finance

Human Resources

Strategy

Operations

IT

Communications


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Management as a process / set of functions

Planning

Organizing

StaffingLeading

ControllingINPUTS Men

Materials

Machinery Money

OUTPUTS

Goods

Service

Profit

Customersatisfaction


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Management: Science or Art?

Management as a Science Management as an Art

Systematized body of knowledge

Management is a social science

Management is an Inexact

science

Use of knowledge

Creativity

Personalized

Constant Practice

The Art of management is as old as civilization,

The Science of Management is young and developing

The ability to meet problems requires both sound knowledge & constant practice

Thus, managers need to combine their scientific knowledge with artistic problem

solving skills to emerge as winners in the competitive environment


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B. The Evolution of Management

Thought


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I. Early Management Thought

Early ideas about management strategy

Sun Tzu, The Art of War

Early ideas about leadership

Nicol Machiavelli, The Prince

Early ideas about the design and

organization of work

Adam Smith, The Wealth of Nations

Division of labor


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II. Classical Perspective

Scientific Management

Frederick W. Taylor

Four Principles of Scientific Management

1. Scientifically study each part of a task and develop the best methodof performing the task.

2. Carefully select workers and train them to perform the task by using

the scientifically developed method.3. Cooperate fully with workers to ensure that they use the proper

method.

4. Divide work and responsibility so that management is responsible forplanning work methods using scientific principles and workers areresponsible for executing the work accordingly.


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Administrative

Management

Henri Fayol -

Father of Modern

Management Theory

( 1841-1925)


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Webers Theory of Bureaucracy

Max Weber (1864-1920) - German Sociologist

Developed the principles of bureaucracy as a formal systemof organization and administration

Webers Principles of Bureaucracy

1. A managers formal authority derives from the position he holds

in the organization.

2. People should occupy positions because of their performance, not

because of their social standing or personal contacts.3. The extent of each positions formal authority and task

responsibilities and its relationship to other positions should be

clearly specified.

4. Authority can be exercised effectively when positions are arranged

hierarchically, so employees know whom to report to and whoreports to them.


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III. Behavioral Perspective

The Hawthorne Studies

The discovery that paying special attention to employees

motivates them to put greater effort into their jobs.

(from the Hawthorne management studies, performed from 1924 1932 at Western

Electric Companys plant near Chicago)

Human Relations Approach

Employee motivation

Abraham Maslow Hierarchy of Needs

Leadership style

Douglas McGregor Theory X and Theory Y


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IV. Contemporary Management Perspectives

Systems Theory

Views the organization as a system of interrelated parts

that function in a holistic way to achieve a common

purpose.

Contingency Theory

States that there is no one best way to manage anorganization Because what works for one organization may not work for another

Situational characteristics (contingencies) differ

Managers need to understand the key contingencies that determinethe most effective management practices in a given situation


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Total Quality Management

An organization-wide approach that focuses on quality

as an overarching goal.

The basis of this approach is the understanding that all

employees and organizational units should be workingharmoniously to satisfy the customer

The Learning Organization

The management approach based on an organization

anticipating change faster than its competitors to have

an advantage in the market over its competitors.


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Peter F. DruckerWorld Renowned management guru, thinker and writer

(1909-2005)


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Management and Society

Management science and practice undergoing

substantial changes due to a dynamic environment


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C. The Organizational Environments

Ecological

Legal

Elements of the broader environment which affect the industry and firms within it


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Political: Government type and stability Freedom of the press, rule of law and levels of bureaucracy and corruption Regulation and de-regulation trends Social and employment legislation

Tax policy, and trade and tariff controls Environmental and consumer-protection legislation

Economic: Stage of a business cycle

Current and projected economic growth, inflation and interest rates Unemployment and supply of labor Labor costs Levels of disposable income and income distribution Impact of globalization Likely changes in the economic environment

PESTLE


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PESTLE

Socio-cultural: Cultural aspects, health consciousness, population growth rate, age

distribution, Education, occupations, earning capacity, living standards Social diversity, immigration/emigration, ethnic/religious factors Media views, trends, advertisements, publicity Demographics: age, gender, race, family size Organizational culture, attitudes to work, management style, staff attitudes

Technological: Maturity of technology, New technological developments, research funding,

technology legislation Information technology, internet, global and local communications

Technology access, licensing, patents, potential innovation, research,intellectual property issues, advances in manufacturing

Transportation, energy uses/sources/fuels, rates of obsolescence, wasteremoval/recycling


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PESTLE

Legal: Current home market legislation, future legislation

International legislation

Regulatory bodies and processes

Environmental regulations, employment law, consumer protection

Industry-specific regulations, competitive regulations

Environmental: Ecological Environmental issues, environmental regulations


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D. Managerial Functions, Roles & Skills

Managerial Functions


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Interpersonal

roles

Source: Adapted from Henry Mintzberg, Managerial Work: Analysis from Observation, Management Science, 18 (October 1971):

Mintzbergs Managerial Roles (A)


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Mintzbergs Managerial Roles (B)


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Mintzbergs Managerial Roles (C)


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Types ofManagers


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Managerial Skills

Domain related skills ex. Engineering,finance etc

Technical Skills

An understanding of human behavior andgroup processes, and the feelings,attitudes, and motives of others, andability to communicate clearly and

persuasively.

InterpersonalSkills

Good judgment, creativity, and the abilityto see the big picture when confrontedwith information.

Conceptual Skills


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Managerial Hierarchy and Skills

Hierarchy SkillsDegree of Authority

& Scope of

Responsibility

Top

Middle-Level

First-LineHuman

Relation

skills High

Medium

Low


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Thank You!

1 Perspective Management

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