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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