MANAGEMENT CONCEPTS AND

ORGANIZATIONAL BEHAVIOR-
2002BA101
UNIT-1
INTRODUCTION TO MANAGEMENT

Management: Nature and purpose-Science or an

art-Roles of manager-Patterns of management
analysis-Evolution of management thought-System
approach to operational management-Social
responsibility of managers-Ethics in management
MEANING
• Art of getting things done with and through
other people to achieve its objectives
DEFINITION OF MANAGEMENT
• Management is the art of knowing what you want to do and then
seeing that is done in the best and cheapest way”. – F.W.Taylor

• Harold Koontz, "Management is the art of getting things done

through and with people in formally organized groups.”
• Management is the act of getting people together to
accomplish desired goals and objectives using available
resources efficiently and effectively.

• Management acts as a guide to a group of people working in

the organization and coordinating their efforts, towards the
attainment of the common objective.
Characteristics/nature of Management
Characteristics of Management
• Universal- Require Management/Profit or Not for Profit organization
• Goal Oriented- Predetermined objective
• Continuous Process- Ongoing process/ Functional areas of
management
• Group activity- Individual needs expectations and belief.
• Dynamic function- PESTEL influence- formulate strategies and
implements them
• Intangible force- Neither be seen nor be touched but can feel its
existence.
LEVELS OF MANAGEMENT
Levels of Management
• Top-Level Management:
Board of Directors and Chief Executives who are responsible for defining
the objectives, formulating plans, strategies and policies.
• Middle-Level Management:
Departmental and division heads and managers who are responsible for
implementing and controlling plans and strategies which are formulated by
the top executives.
• Lower Level Management:
First-line managers, foreman, supervisors who are responsible in
reducing wastage and idle time of the workers, improving the quality and
quantity of output.
Functional Areas of Management

✓Production Management

✓Financial Management

✓Marketing Management

✓Human Resource Management

✓Materials Management
DIFFERENCE BETWEEN ADMINISTRATION AND
MANAGEMENT
Purpose of Management
• Optimum utilization of resources
• Minimization of costs
• Growth and development of business
• Better quality goods
• Ensuring regular supply of goods
• Discipline and morale
• Mobilizing best talent
• Promotion of research and development
• Minimize the element of risk
• Improving performance
• Planning for future
IS MANAGEMENT A SCIENCE OR AN
ART?
• MANAGEMENT AS A SCIENCE
• Science is obtaining information about a particular object by a
systematic pattern of observation, study, practice, experiments, and
investigation.
• The management process also follows the same pattern. Gathering
data and facts, analyzing them and making a decision based on
analysis, are the basic functions of the management.
• Management follows a systematic method to find a possible solution
for a problem.
Common Characteristics of Science and management

• Universally accepted Principles- Unity of Command (One Man , One Boss)

• Experimentation and Observation- Science is based on logic. Management
principles were developed based on experience of large number of
managers.
Ex: Fair Management of employee leads to Job satisfaction
• Cause and Effect relationship
Bonus- Work hard
Not treated well- less productivity
• Test of validity and Predictability
Unity of direction- Single Boss Vs Dual Boss
Concepts- Clear “concepts” of mental images of anything
formed by generalization from particulars.
Theories- Any branch of science has theories. Management
studies over the years developed many proved theories for
making management more realistic or scientific.
Management as an Art
Art implies application of knowledge and skills to trying about desired results
Common Characteristics of Art and Management
• Practical Knowledge- Manager cannot be successful by retaining a degree
• Personal Skills- Managers have personalised skills which differentiate
them from others.
• Creativity- Use human and non human resources effectively to achieve
the desired results
• Perfecting through practice- Artist can be more and more proficient
through practice.
Management is a Science as well as Art
• Science teaches us to know while art teaches us to do.
• To be successful, managers have to know and do
things effectively and efficiently. This requires a
unique combination of both science and art of
managing in them.
Roles of Manager
EVOLUTION OF MANAGEMENT THOUGHTS
➢ Classical Management Theory

✓ Scientific Management
✓ Administrative Management
✓ Bureaucratic Management

➢ Neo – Classical Theory or Behavioral Theory

➢ Modern Theory (Approach)

✓ System Approach
✓ Contingency Approach
• CLASSICAL APPROACH
▪ The classical approach is the theory of management that focuses on
the productivity, output and efficiency of workers, rather than the
differences in behavior that exist among them.

• The major contributors of classical approach are:

Frederick Winslow Taylor [ 1856 – 1915]

Henry Fayol [1841 – 1925]

Max Weber [1864 – 1920]

 • ELEMENTS OF SCIENTIFIC MANAGEMENT(FW TAYLOR)
• He is known as ‘father of scientific management’. His ideas about management
grew out of his wide-ranging experience in three companies: Midvale Steel Works,
Simonds Rolling Mills and Bethlehem Steel Co.
• Taylor concluded that scientific management involves a complete mental
revolution on the part of both workers and management, without this mental
revolution scientific management does not exist.
• Principles of scientific management propounded by Taylor are:
1. Science, Not Rule of Thumb- Decision should be based on scientific enquiry with cause and
effect relationship (Not by personal judgments).
2. Harmony, Not Discord - It becomes possible by (a) sharing a part of surplus with workers (b)
training of employees, (c) division of work (d) team spirit (e) positive attitude (f) sense of
discipline (g) sincerity etc.
3. Mental Revolution- Change in the attitude of the workers and management
4. Cooperation, Not Individualism –Mutual cooperation between workers and management
5. Development of each and every person to his or her greatest efficiency and prosperity.
Elements of Scientific management:
1. Separation of Planning and doing
2. Job analysis- Best way of doing things
3. Standardisation- Instruments and tools, period of work, amount of
work
4. Scientific selection and training of workers: Education, aptitude,
physical strength
 GENERAL ADMINSTRATION THEORY
• A theory of management that focused on describing what managers do and what
constitutes good management practice.
• Henri Fayol, the father of modern management, wrote on the basis of his practical
experience as a manager. Fayol held that there is a single “administrative science”,
whose principles can be used in all management situations no matter what kind of
organization was being managed. This earned him the title of “Universality”.
• Fayol’s contributions are published in his book, “The General and Industrial
Administration”. Fayol’s book falls into 2 parts. The first part concerned with the
theory of administration in which fayol divided the total industrial activities into six
categories which are:
• Technical [Production, Manufacturing]
• Commercial [Buying, Selling Exchange]
• Financial [Search for capital and optimum use]
• Security [Protection of Property and Persons]
• Accounting [Balance Sheet , Cost Analysis]
• Management [Planning, Organising, coordinating, Directing, Controlling]
BUREAUCRATIC MANAGEMENT(MAX WEBER)
• A form of organization characterized by division of labour, a
clearly defined hierarchy, detailed rules and regulations and
impersonal relationship.
• Principles of the theory are:
❑A well defined hierarchy.
❑Division of labour and specialisation.
❑System of Written Rules and Regulations.
❑Impersonal Relationship between managers and employees.
❑Selection & evaluation based on competence of employees.
❑Records.
 • NEO CLASSICAL THEORY
• Neo Classical began to consider the human side of an organisation and the social
needs of employees.
• The teamwork, communication are the requisites of the organisation and this can
be achieved only through behavioral approach.
• Contributors of Neo – Classical approach are:

Abraham Maslow [1908 – 1970]

Douglas McGregor [1906 – 1964]

Elton Mayo [1880 – 1949]

Chester Barnard [1886 – 1961]

ABRAHAM MASLOW
McGREGOR
Contribution of Elton Mayo
• George Elton Mayo (1880-1949): Mayo was a professor at the
Harvard Business School. He served as the leader of the team
which carried out the famous Hawthorne Experiments at the
Hawthorne plant of the Western Electric Company (USA)
during 1927-32.
• Originally the research was an application of Taylor’s
management science techniques
designed to improve production efficiency. Mayo discussed in
detail the factors that cause a change in human
behavior.
• Mayo’s first study involved the manipulation of illumination for one
group of workers and comparing their output with that of another group
whose illumination was held constant. He concluded that the cause of
increase in the productivity of workers is not a single factor like changing
working hours or rest pauses but a combination of these
several other factors.
• Considerate supervision, giving autonomy to the workers, allowing the
formation of small cohesive groups of workers, creating conditions
which encourage and support the growth of these groups and the
cooperation between workers and management lead to increase in
productivity.
Contributions of Chester Barnard (1886-1961)
• Chester Barnard (1886-1961): Chester Barnard, president of Bell Telephone
Company, developed theories about the functions of the manager as
determined by constant interaction with the environment.

• Barnard saw organizations as social systems that require human

cooperation.

• Barnard believes that organizations were made up of people with

interacting social relationships.

• The manager’s major functions were to communicate and stimulate

subordinates to high level of efforts.
• The principles are:
• Channels of communication should be definitely known.
• The line of communication must be as direct or short as
possible.
• The complete line of communication should usually be
used.
• Competence of the persons serving at communication
centers that is
officers, supervisory heads, must be adequate.
Systems Approach to the Management
• Ludwig von Bertalanffy is recognized as the founder of general
system theory.
• The system approach is based on the concept that an organization is
a system.
• A system is defined as a number of interdependent parts functioning
as a whole for some purpose.
• Here there are five components: inputs, a transformation process,
outputs, feedback, and the environment.
• Open versus closed systems.
• According to Ludwig, there are two basic types of systems:
• closed systems and open systems.
• Closed system are not influenced by and do not interact with their
environments.
• Open systems interact with their environment. All organizations are
open systems, although the degree of interaction may vary.
How does the systems approach contribute to
our understanding of management?
• Researcher envisioned an organisation is made up of “Interdependent
factors”
• Individual, groups, attitude, motives, formal structure, goals, status
and authority
• All the interdependent units are working together to achieve the
organizational goals.
• No organization is self contained
 Contingency Approach
• The contingency approach to management suggests that there is no
particular best way to manage. The management activities such as
planning, controlling, leadership, or organization are completely dependent
on the circumstances and the environment.
• The classical, behavioral, and management science schools assumed
a universal approach.
• They proposed the discovery of "one-best-way" management principles
that applied the same techniques to every organization.
• However, experienced managers know that not all people and situations
should be handled identically.
• Therefore, the contingency approach holds that universal solutions and
principles cannot be applied to organizations.
• In simple terms, the contingency theory suggests that what managers do in
practice depends on, or is contingent upon, a given set of circumstances - a
situation.
• SOCIAL RESPONSIBILITY OF MANAGERS
• Social responsibility is defined as the obligation and commitment of managers to
take steps for protecting and improving society’s welfare along with protecting
their own interest.
• The managers must have social responsibility because of the following reasons:

• Responsibility towards shareholders

• Responsibility towards consumers
• Responsibility towards employees
• Responsibility towards creditors
• Responsibility towards suppliers
• Responsibility towards the government
• Responsibility towards competitors
• Responsibility towards general public
ETHICS IN MANAGEMENT
• Management ethics‟ is related to social responsiveness of a firm. It is
“the discipline dealing with what is good and bad, or right and
wrong, or with moral duty and obligation.
• It is a standard of behavior that guides individual managers in their
works”.
• The principles by which a manager leads his company will dictate
everything from employee ethics to company morale and
productivity.
• Every company needs to set an ethics policy that applies to everybody
in the company, from the highest executive level to the mail clerk.
• Established policies and ramifications for violations enable a company
to effectively manage issues.
Ethical theories
In organisations, managers compete for information, influence and
resources.
The Utilitarian theory suggests that the plans and actions should be
evaluated by their consequences. The underlying idea is that plans or
actions should produce the greatest good for the greatest number of
people.
The theory on based rights holds that all people have basic rights.
Examples are the rights to speak and write.
The theory of justice demands that decision makers be guided by
fairness and equity, as well as impartiality.
Institutionalizing Ethics
Theodore Purcell and James Weber suggest that this can be
accomplished in three ways.
• 1. by establishing an appropriate company policy or a code of ethics
• 2. by using a formally appointed ethics committee and
• 3. by teaching ethics in management development programs.