1 Village to Global Village

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PGD TM/ITM 105:

Management Theory, Practice& Organisational Behaviour


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Management Theory Outline

Sr.No.

Topic Hours

1 Nature of Management, Development of

Management Thought, Approach to Management,

Policy, Procedure, Method and Rule, Planning &Forecasting

4

2 Objective & MBO, Decision Making, Organization,

Delegation of Authority & Decentralization3

3 Departmentation, Span of Management, Types of

Organization, Organization Charts & Manuals3

4 Staffing, Directing, Motivation & Leadership 2


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Course Planning

Sr. No. Topic Hours

1 Village to Global Village 1

2 Evolution of Management Practice 43 Planning & Decision Taking 3

4 Organising & Staffing 3

5 Control & Leading 2


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Village to the Global Village


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Management is the process of achievingorganizational objectives through peopleand other resources

What is Management?


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Copyright 2005 by Houghton

Mifflin Company. All rightsreserved.

What is a Manager?

Someone whose primary responsibility is tocarry out the management process

Someone who plans and makes decisions,

organizes, leads, and controlshuman, financial, physical,and information resources


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Management Defined

Management

The process of getting things done,effectively and efficiently, throughand with other people

Efficiency

Means doing the thing correctly; refers tothe relationship between inputs and

outputs; seeks to minimize resource costs

Effectiveness

Means doing the right things; goalattainment


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Efficiency and Effectiveness


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Copyright 2005 by Houghton

Mifflin Company. All rightsreserved.

Efficiency versus Effectiveness

Efficiency:Operating insuch a waythat resourcesare not wasted

Effectiveness:Doing the right

things in theright way at

the right times

SuccessfulManagement


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Village to the Global Village

Management thought & practice iscontextual, and has changed &

adapted to the needs of theenvironment


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The Village Economy (Agrarian)

Subsistence level, farm basedeconomy

Local RMs, Labour, Markets

Technology Tradition bound passed from father to son

Very low productivity

Poor infrastructure Political Entity - Feudal Lord

Value Creation difficult


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Gutenbergs Printing Press


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The Treadle Press


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Hand Weaving


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Hand Loom


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Hand Loom


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The Industrial Revolution (1800-1960)

Application of power formanufacturing process

Beginning of application of ModernTechnology

Beginning of Innovation in industry

Productivity

Management focused on increasingproduction & productivity


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The Industrial Revolution (2)

Expansion of markets due toincrease in Real Wages

Capital formation Exploitative use of labour

Continued dependence on skilledworker

Society divided into Feudal Rich &Peasants / Workers no middleclass


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Mass Production (1)

Manufacturing process broken downinto small relatively simple tasks

Workers job was to complete given

simple task within given time togiven quality standards

Quality & productivity was delivered

by the production system Dependence on skilled worker for

production broken


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Mass Production (2)

Skilled employees required only forsetting up & monitoring system

Management focused on increasing

production & productivity Dramatic increase in productivity Markets size due to increase in

Real Wages, focus was on meeting

basic needs of society Attitude to the customer was

paternalistic


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Mass Production (3)

Focus was on selling standardisedproducts at low cost throughextensive distribution network

Management orientation to themarket placeProduction Concept ProductConcept Selling Concept

Capital formation Some of the benefits of prosperity

passed on to labour


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Circular Looms


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Market Fragmentation Differentiated

Marketing (1)

Prosperity in the society led tocustomers preference shifting frommass marketed standardisedproducts to those products whichmet their needs more specifically

Management focused on finding outwhat customers want & satisfying

needs of customers Management orientation to the

market place -Marketing Concept


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Market Fragmentation Differentiated

Marketing (2)

Dramatic increase in product variety

Competition

Total markets size due toincrease in choice, market size forspecific product due tofragmentation of market

Cost pressure on manufacturers dueto providing increased variety & lossof economies of scale


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Global Markets

Manufacturers sought foreignmarkets to offset loss of economiesof scale in home markets

Attempt to create Global Marketsto sell a standardised Portfolio ofproducts across national markets


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The Third Wave

o Information technology istransforming society from itsmanufacturing focus to one ofservice


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The Changing Economy

Old Economy

National borders serve tolimit competition

Technology reinforces rigidhierarchies and limits accessto information

Job opportunities are forblue-collar industrial workers

Population is relativelyhomogeneous

Business is estranged from

its environment Economy is driven by large

corporations

Customers get what businesschooses to give them

New Economy

National borders no longerdefine an organizationsoperating boundaries

Technology opens uporganizations and makes

information more accessible

Job opportunities are forknowledge workers

Population is characterized bycultural diversity

Business accepts its socialresponsibilities

Economy is driven by smallentrepreneurial firms

Customer needs drive business


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A Global Marketplace

Global village

Refers to the concept of a boundarylessworld; the production and marketing of

goods and services worldwide

Borderless organization

A management structure in which

internal arrangements that imposeartificial geographic barriers are brokendown


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Global Competition

Multinational corporations (MNCs)

Companies that maintain significant operations intwo or more countries simultaneously but arebased in one home country

Transnational corporation (TNC)

A company that maintains significant operationsin more than one country simultaneously anddecentralizes decision making in each operation

to the local country Strategic alliances

A domestic and a foreign firm share the cost ofdeveloping new products or building productionfacilities in a foreign country


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1. Explain what is meant by the term management

2. Differentiate between efficiency and effectiveness

3. Describe the three waves in modern social history

and their implications for organizations4. Explain the importance of viewing management

from a global perspective

5. Identify the ways in which technology is changing

the managersjob

Summary & Implications

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