Fundamentals of Mgt. Lec 1

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Fundamentals of Management

Part 1: Management Principles

Chapter 1: Nature of Management

1Fundamentals of Management



During this lecture we will

learn:

Concept of management

Basic elements of management

Nature of the managerial task

Modern Approaches to Management




Definition of Management

Management in business and humanorganization activity is simply the act of getting people together to accomplish

desired goals

According to the management guru PeterDrucker, “Organization and coordination

of the activities of an enterprise in accordance with certain policies and in achievement of clearly defined objectives”

Fundamentals of Management 3



WHAT IS MANAGEMENT?

An art more than a science

Deductive Method: General to ParticularInductive Method: Particular to General

Inherently social in nature

Getting things done through others




GOALS OF BUSINESS OR

MANAGEMENT

Business/economics traditionally definedas based on a sole primary motive of self-interest

Lead to thinking about profit-maximizationas the major goal of enterprise

Failed to account for the social nature of business/economics -- inaccurate based

on new science 5Fundamentals of Management



Is Administration and

management same?

Administration refers to the activities of the higher level of the management groupwho identifies the major aims and

policies.

Administration is a part of management




FOUR FUNCTIONS

First stated by Henri Fayol(1841-1925)-FrenchCEO

Now stated as

1. Planning

2. Organizing3. Directing

4. Controlling




PLANNING & ORGANIZING

Planning -- Setting firms goals plus theway to accomplish them

Organizing -- deciding structure of

decision-makingWhat will be done, by whom, for whom




DIRECTING & CONTROLLING

Directing-- Motivating employees toachieve firm‟s objectives

Controlling --

Monitoring progress toward goals

Taking corrective action




Scientific Management

Pioneers tried to find more efficientmethods and procedures for control

Aims at investigating every problem and

find best possible way to solve theproblems using the scientific methods orresearch




Scientific Management Contd.

F W Taylor, a management guru, listeddifferent principles to guide management:

• Each worker should have a large, clearly

defined, daily task

• Standard conditions are needed to ensure the

task is more easily accomplished

• High payment should be made for successfulcompletion of tasksFundamentals of Management 11



F W Taylor’s Principles cont:

Taylor also listed „new duties‟ of management:

• The Development of a true science

• The Scientific selection, education anddevelopment of workmen

• Friendly close co-operation betweenmanagement and workers




Administrative Management

Henry Fayol aimed at developing ascience of administration for management

He believed managers, at higher levels,are less dependent on technicalknowledge and more on a knowledge of administration


’ 14 f



Fayol’s 14 principles of

management:

1. Division of Labor

2. Authority

3. Discipline4. Unity of command

5. Unity of direction

6. Subordination of Individual Interest togeneral interest

7. Remuneration or Salary and wages


F l’ 14 i i l f



Fayol’s 14 principles of

management Contd:

8. Centralization

9. Scalar Chain

10. Order11. Equity

12. Stability of tenure of personnel

13. Initiative14. Esprit de corps




Max Weber (1864 – 1920)

More concerned with the basics of howenterprises are structured

Developed ideas about the structure of the organization that define what weknow as bureaucracy (structure and set of regulations in place to control activity,usually in large organizations andgovernment)


W b ’ ti



Weber’s perspectives on

Administrative Management are:

Division of labor

Hierarchy of authority

Formal selection

Career managers

Formal rules


H l ti t d



Human relations movement and

behavioral science

Deals with sciences of mankind and of behavior as individuals and in groups

Concerned with problems of fatigue andefficiency at work and

Problems relative to selecting and trainingemployees




Hawthorne Experiments

Focused toward psychological andbehavioral side of employees at work

Psychological Experiments of Elton Mayo disclosed or revealed components of the

job and work satisfaction

Experiments were divided into threephases




Hawthrone Experiments Contd:

1. Test Room Studies: assesses the effectof single variables upon employeeperformance

2. Interviewing Studies: consists of employees‟ surveys and interviews

3. Observational Studies: involves studyingthe “normal” group working


S t h t



Systems approach to

management

A system is an organized combination of parts, which forms interactions betweenthe parts and between the system and the

environment

Gives managers a way of looking atorganizations as a complete whole




System approach contd:

Systems can be divided into twocategories:

Deterministic : Behavior can be determined

Probabilistic : Behavior can only be estimated

A system includes different elements or

systems called sub-systems




Elements of a system

Sensing system

Information coding system

Physical processing system

Regulating and controlling system

Information and storage system

Goal setting or policy making system




Systems Approach Process

Open page no. 21 of the course book




Today’s Manager

Responsible for others and their ownwork

Managers are also:

Mediators of disputes

Politicians : Persuade and motivate

Diplomats : Representative of companies




ESSENTIAL SKILLS FOR MANAGERS

1. TECHNICAL SKILLS

2. HUMAN SKILLS

3. CONCEPTUAL SKILLS




Decisional Roles of Managers

Entrepreneur: Brings new ideas

Disturbance Handler: Handles or tacklesstrikes and lockouts

Resource allocator: Allocates or utilizesthe company‟s resources

Negotiator: Deals with suppliers andnegotiates for prices or for best services


Entrepreneurship and



Entrepreneurship and

Intrapreneurship

Entrepreneurship is a process of bringingcreative and innovative ideas andimplement them by combining factors of

production to create wealth and meet aneed

Intrapreneurship involves bringing newideas within the organization




In-class exercise

1. List five desired qualities a managershould have

2. List five desired qualities an employeeshould have

3. Let‟s say you are a Businessman or aBusiness woman, what objectives orgoals will you set for your business?




In-Class exercise contd:

4. Which function of management do youlike the most and why?


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Fundamentals of Mgt. Lec 1

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