Bm 227 unit 1
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Transcript of Bm 227 unit 1
UNIT-1CONCEPTS OF MANAGEMENT
QAZI SAEED AHMAD ASSISTANT PROFESSOR
DEPARTMENT OF ELECTRONICS & COMMUNICATIN ENGINEERING
INTEGRAL UNIVERSITY LUCKNOW
MANAGEMENT CONCEPTS IN ENGINEERING BM227
What is Management?
Definition: Coordinating work activities so that they are completed efficiently and effectively with and through other people
Efficiency: getting the most output from the least input Effectiveness: completing activities so that the
organization’s goals are attained.
Management is…
EffectivenessEffectiveness
EfficiencyEfficiencyGetting workGetting workdone throughdone through
othersothers
Managerial Roles:
Figurehead
Leader
Liaison
Monitor
Disseminator
Spokesperson
Entrepreneur
Disturbance Handler
Resource Allocator
Negotiator
Interpersonal Informational Decisional
Management Functions
Planning
Organizing
Staffing
Leading
Controlling
Making Things Happen
Meeting the Competition
Organizing People, Projects, and Processes
Classical Management Functions
Updated Management Functions
Levels of Management
CEOCOOCIO
General MgrPlant Mgr
Regional MgrOffice ManagerShift Supervisor
Department ManagerTeam Leader
Top Level Management
Middle Level Management
First-LineManagement
Top ManagersResponsible for…
Creating a context for change
Developing attitudes of commitmentand ownership in employees
Creating a positive organizational culture through language and action
Monitoring their business environments
Middle ManagersResponsible for…
Setting objectives consistent with top management goals, planning strategies
Coordinating and linking groups, departments, and divisions
Monitoring and managing the performance of subunits and managers who report to them
Implementing the changes or strategiesgenerated by top managers
First-Line ManagersResponsible for…
Managing the performance of entry-level employees
Teaching entry-level employees how to do their jobs
Making schedules and operating plans based on middle management’s intermediate-range plans
Management Theory Pre-Classical Classical Approaches
Frederick Taylor: Scientific Management (1886) Frank and Lillian Gilbreth: Time/motion studies (later
1800s) Henri Fayol: 14 Principles of Management (1880s-1890s) Max Weber : Bureaucracy (1920s)
Behavioral Approaches The Hawthorne Experiment (1927) MacGregor’s Theory X and Theory Y (1960)
Quantitative Approaches Contemporary Approaches
Ouchi’s Theory Z (1981) Contingency Management
Classical Approaches
Frederick Taylor: Scientific Management (1886)
Frank and Lillian Gilbreth: Time and motion studies (later 1800s)
Henri Fayol: Fourteen Principles of Management (1880s-1890s)
Max Weber : Bureaucracy (1920s)
Frederick W. Taylor
Developed Scientific Management Laid foundation for the study of management Key ideas:
Management as a separate field of study Explicit guidelines for scientific study of management
functions Time studies for setting standards Functional specialization of managers’ duties Piece-rate Incentive systems
Taylor’s Principles of Management
The “one best way.” Management using scientific observation
Scientific selection of personnel Put right worker in right job, find limitations, train
Financial incentives Putting right worker in right job not enough A system of financial incentives is also needed
Functional foremanship Division of labor between manager and workers Manager plans, prepares, inspects Worker does the actual work “Functional foremen” , specialized experts, responsible
for specific aspects of the job
Frank & Lillian Gilbreth
Time and motion efficiency experts Developed therbligs, breakdown of manual skills into
16 actions Frank was a lazy bricklayer looking for an easier way and
Lillian was a psychologist. Endorsed piece-work and suggested a higher rate per unit
if his directions were followed. Disagreed with Taylor’s idea that management should
choose which workers took which jobs.
Henri Fayol
First came up with the five basic functions of management—Planning, Organizing, Staffing, Directing, Communicating, and Controlling
First wrote that management is a set of principles which can be learned.
Developed Fourteen Principles of Management
What Is Management? (According To Fayol)
Fayol's definition of management roles and actions distinguishes between Five Elements:
Prevoyance. (Forecast & Plan). Examining the future and drawing up a plan of action. The elements of strategy.
To organize. Build up the structure, both material and human, of the undertaking.
To command. Maintain the activity among the personnel.
To coordinate. Binding together, unifying and harmonizing all activity and effort.
To control. Seeing that everything occurs in conformity with established rule and expressed command.
1. Specialization of labor. Specializing encourages continuous improvement in skills and the development of improvements in methods.
2. Authority. The right to give orders and the power to exact obedience.
3. Discipline. No slacking, bending of rules. 4. Unity of command. Each employee has one and only one
boss. 5. Unity of direction. A single mind generates a single plan
and all play their part in that plan. 6. Subordination of Individual Interests. When at work,
only work things should be pursued or thought about. 7. Remuneration. Employees receive fair payment for
services, not what the company can get away with.
HENRI FAYOL’s FOURTEEN PRINCIPLES OF MANAGEMENT
8. Centralization. Consolidation of management functions. Decisions are made from the top.
9. Scalar Chain (line of authority). Formal chain of command running from top to bottom of the organization, like military
10. Order. All materials and personnel have a prescribed place, and they must remain there.
11. Equity. Equality of treatment (but not necessarily identical treatment)
12. Personnel Tenure. Limited turnover of personnel. Lifetime employment for good workers.
13. Initiative. Thinking out a plan and do what it takes to make it happen.
14. Esprit de corps. Harmony, cohesion among personnel.
Application Of Fayol’s Principles
Change and Organization.Decision-making.Skills. Can be used to improve the basic effectiveness of a manager. Understand that management can be seen as a variety of activities, which can be listed and grouped.
Max Weber
Coined “bureaucracy”: the perfect office Well defined chain of command Clear division of work (job descriptions) Procedures for any situation Impersonality Employment and promotion based on technical
competence.
Behavioral Approaches
The Hawthorne Experiment (1927) Chester Barnard (1930s – 1960s) Herbert Simon (1947) MacGregor’s Theory X and Theory Y (1960)
Functions of Management
Planning and Decision Making
Defining goals, establishing strategy and developing sub plans to choose alternatives and coordinate activities
Organizing
• Deciding where decisions will be made
• Who will do what jobs and tasks
• Who will work for whom
Leading
Motivating
Inspiring
LeadingLeading
Controlling
Monitoring progress towards goal achievement and taking corrective action when needed
What is Scientific Management?
Role Differences Between Engineers and Managers
Role Differences Between Engineers and Managers
Behavioral Approaches
The Scope of ManagementLarge businesses: Most knowledge comes from large
profit-seeking organizations.Small and Start-Up Businesses: Management is key as
wrong decisions may never be recovered. This is how most businesses start. Compaq started by 3 in 1982. In 1994 76th largest with sales of $7b.
International management: Most large organizations derive a significant portion of their business from international markets.
The Scope of Management1. Subject-matter of management: Planning, organizing,
directing, coordinating and controlling are the activities included in the subject matter of management.
2. Functional areas of management: These include:Financial management includes accounting, budgetary control,
quality control, financial planning and managing the overall finances of an organization.
Personnel management includes recruitment, training, transfer promotion, demotion, retirement, termination, labor-welfare and social security industrial relations.
Purchasing management includes inviting tenders for raw materials, placing orders, entering into contracts and materials control.
The Scope of ManagementProduction management includes production
planning, production control techniques, quality control and inspection and time and motion studies.
Maintenance management involves proper care and maintenance of the buildings, plant and machinery.
Transport management includes packing, warehousing and transportation by rail, road and air.
The Scope of Management contd..Distribution management includes marketing, market
research, price-determination, taking market risk and advertising, publicity and sales promotion.
Office Management includes activities to properly manage the layout, staffing and equipment of the office.
Development management involves experimentation and research of production techniques, markets, etc.
3. Management is an inter-disciplinary approach: For the correct implementation of the management, it is important to have knowledge of commerce, economics, sociology, psychology and mathematics.
4. Universal application: The principles of management can be applied to all types of organizations irrespective of the nature of tasks that they perform.
5. Essentials of management: Three essentials of management are:
Scientific methodHuman relationsQuantitative technique6. Modern management is an agent of change: The
management techniques can be modified by proper research and development to improve the performance of an organization.
Nature of Management Universal process: Wherever there is human activity, there is
management. Without efficient management, objectives of the company can not be achieved.
Factor of production: Qualified and efficient managers are essential to utilization of labor and capital.
Goal oriented: The most important goal of all management activity is to accomplish the objectives of an enterprise. The goals should be realistic and attainable.
Supreme in thought and action: Managers set realizable objectives and then mastermind action on all fronts to accomplish them. For this, they require full support form middle and lower levels of management.
Group activity: All human and physical resources should be efficiently coordinated to attain maximum levels of combined productivity. Without coordination, no work would accomplish and there would be chaos and retention.
Nature of Management contd.. Dynamic function: Management should be equipped to face the changes in business
environment brought about by economic, social, political, technological or human factors. They must be adequate training so that can enable them to perform well even in critical situations.
Social science: All individuals that a manager deals with, have different levels of sensitivity, understanding and dynamism.
Important organ of society: Society influences managerial action and managerial actions influence society. Its managers responsibility that they should also contribute towards the society by organizing charity functions, sports competition, donation to NGO’s etc.
System of authority: Well-defined lines of command, delegation of suitable authority and responsibility at all levels of decision-making. This is necessary so that each individual should what is expected from him and to whom he need to report to.
Profession: Managers need to possess managerial knowledge and training, and have to conform to a recognized code of conduct and remain conscious of their social and human obligations.
Process: The management process comprises a series of actions or operations conducted towards an end.
Contribution of Chester Barnard to management science
He looked at organizations as systems of cooperation of human activity, and was worried about the fact that they are typically rather short-lived
This happens because organizations do not meet the two criteria necessary for survival: effectiveness and efficiency.
He give us a much more “realistic” view of what really goes on in formal organization. According to Barnard individual have only a limited amount of power. A person can do only so much when acting alone.
Barnard’s key concepts:Importance of an Individual's behaviour
Compliance Concept of "zone of indifference".
CommunicationFocused on importance of communication in informal organization.
Organizations made up of individual humans with individual motivations
Every large organization includes smaller, less formal groupings whose goals need to be harnessed to those of the whole - this is managements responsibility
Management efficiency vs. effectiveness
Authority only exists in so far as the people are willing to accept it
Other points
Thank You