“Manage men tactfully – Meaning and

Concept; Process and Functions”

 Definition of Management

• Management is the co-ordination of all resources through the process of

planning, organizing, directing, and controlling in order to attain stated
objectives.

• Management is the art of knowing what you want to do and then seeing that it
is done in the best and cheapest way.

• Management is concerned with seeing that the job gets done; its tasks all centre
on planning and guiding the operations that are going on in the enterprise.

• Management is a multipurpose organ that manages a business and manages

managers and manages workers and work.
 Concepts of Management
• Management as an activity - Interpersonal,
Decisional, Informative.
• Management as a process – Social, Integrated,
Continuous, Interactive.
• Management as an economic resource.
• Management as a team.
• Management as an academic discipline.
 Nature and Characteristics of Management

• Management is goal-oriented.
• Management is universal.
• Management is an integrative force.
• Management is a social process.
• Management is multidisciplinary.
• Management is a continuous process.
• Management is intangible.
• Management is an art as well as science.
 Objectives of Management
• Organizational Objectives – Reasonable profits, survival
and growth of business, improving the goodwill of the
enterprise, etc.
• Personal Objectives – Fair remuneration for work
performed, reasonable working conditions, opportunities
for training and development, reasonable security of
service, etc.
• Social Objectives – Quality of goods and services at fair
price to customers, honest and prompt payment of taxes,
conservation of environment and natural resources,
preservation of ethical values of the society, etc.
 Role and Importance of Management

• Achievement of group goals.

• Optimum utilization of resources.
• Minimization of cost.
• Survival and growth.
• Generation of employment.
• Development of the nation.
 Definitions of Effectiveness and Efficiency

• Productivity implies effectiveness and

efficiency in individual and organizational
performance
• Effectiveness is the achievement of objectives
• Efficiency is the achievement of the ends with
the least amount of resources (time, money,
etc.)
Levels of Management
 Levels of Management
• Top Level – BoD, MD, GM, etc.
• Middle Level – Dept. Manager, Deputy
Manager, Asst. Manager, etc.
• Lower Level – Supervisor First Line.
 Top Level Management

• To make a corporate plan for the entire organization covering all areas of
operation.
• To decide upon critical matters such as introduction of new product,
opening new plant, shifting to new technology, etc.
• To decide corporate goals.
• To decide structure of organizations, creating various positions there in.
• To exercise overall managerial control.
• To make decisions regarding disposal and distribution of profits.
• To co-ordinate various sub-systems of the organization.
• To maintain liaison with outside parties.
• To provide direction and leadership to the entire organization as a whole.
 Middle Level Management

• To prepare departmental plan covering all activities of the

department within the basic framework of the corporate
plan.
• To establish departmental goals and to decide upon
various ways and means for achieving these goals to
contribute to organizational goals.
• To secure smooth functioning of the department.
• To issue detailed orders and instructions to lower level
managers and co-ordinate the activities of various work
units at lower level.
• To act as a link between top and lower level
managements.
Lower Level or Supervisory Level Management

• Planning of day-to-day work.

• Assignment of jobs and issuing orders and instructions.
• Supervising and guiding workers.
• Maintaining close personal contacts with workers to
ensure discipline and team-work.
• Evaluating operating performance.
• Sending reports and statements to higher authorities.
• Communicating the grievances and suggestions of workers
to higher authorities.
Management Functions
 Management Process
• Management is a process of the quality of both
physical as well as human resources to seek
objectives.
• It is a human and social process directed at
individuals to get things done.
• It is a result oriented process, directly related with
the task of determining objectives and devising ways
and means to accomplish them efficiently.
 Nature of the Process of Management

• Continuity
• Circular
• Social
• Composite (Synergistic; 2 + 2 = 5)
 Classification of Managerial Functions

• Luther Gullick used “POSDCORB” as the key word.

• P = Planning
• O = Organizing
• S = Staffing
• D = Directing
• Co = Controlling
• R = Reporting
• B = Budgeting
 Planning (Sub-functions and elements)
• Forecasting
• Decision making
• Strategy formulation
• Policy making
• Programming
• Scheduling
• Budgeting
• Problem solving innovation
• Investigation and research
 Organizing (Sub-functions and elements)

• Functionalization
• Divisionalization
• Departmentalization
• Delegation
• Decentralization
• Activity analysis
• Task allocation.
 Staffing (Sub-functions and elements)

• Manpower planning
• Recruitment
• Selection
• Training
• Placement
• Compensation
• Promotion
• Appraisal etc.
 Directing (Sub-functions and elements)

• Supervision
• Motivation
• Communication
• Leadership
• Activating etc.
 Controlling (Sub-functions and elements)

• Fixation of standards
• Recording
• Measurement
• Reporting
• Corrective action
Qualities of a Good Manager
• Education
• Training
• Leadership
• Personality
• Scientific outlook
• Ability to do work
• Ability to get work done
 Qualities of a Good Manager (Cont…)

• Self confidence
• Honesty
• Technical proficiency
• Human touch
Evolution of Management Thought
 CLASSICAL THEORY

• Classical approach is the oldest formal school of thought

which began around 1900 and continued into the 1920s.

• Its mainly concerned with the increasing the efficiency of

workers and organizations based on management
practices, which were an outcome of careful observation.

• Classical approach mainly looks for the universal

principles of operation in the striving for economic
efficiency.
DEFINITION OF CLASSICAL THEORY

•Classical approach based on the belief

that employees have only economical and
physical needs and that the social needs &
need for job satisfaction either does not
exist or are unimportant.

• Accordingly it advocates high

specialization of labour, centralized
decision making & profit maximization.
 Classical Approach
• During the classical period, management
thought was focused on :-
• job content,
• standardization,
• division of labor, and
• scientific approach towards organization.
• It also was closely related to the industrial
revolution as well as the rise of large-scale
enterprise.
MAJOR CONTRIBUTORS

• FREDERICK WINSLOW
TAYLOR
(1856-1915)

• FRANK GILBERTH (1868-

1924) & LILLIAN
GILBERTH(1878-1972)
• HENRI FAYOL
(1841-1925)

• MAX WEBER
(1864-1920)
 Scientific Management Theory
• Frederick Winslow Taylor well-known as the founder of
scientific management.
• He recognized and emphasis the need for adopting a
scientific approach to the task of managing an enterprise.
• He tried to diagnose the causes of low efficiency in
industry and came to the conclusion that much of waste
and inefficiency is due to the lack of order and system in
the methods of management.
• He found that the management was usually ignorant of the
amount of work that could be done by a worker in a day as
also the best method of doing the job.
 Scientific Method
To make use of "scientific method" for achieving higher
efficiency. The scientific method consists essentially of

• Observation
• Measurement
• Experimentation and
• Inference
 Principles of Scientific Method
• Science, not rule of thumb
• Harmony, not discord
• Co-operation, not individualism
• Maximum output, in place of restricted output
• The development of each man to his greatest
efficiency and prosperity.
 Limitations
• Worker’s Criticism

– Speeding up of workers
– Loss of individual worker's initiative
– Problem of monotony
– Reduction of Employment
– Weakening of Trade Unions
– Exploitation of workers

• Employer's Criticism

– Heavy Investment
– Loss due to re-organization
– Unsuitable for small scale firms
 Administrative Theory
Henry Fayol is considered the father of modern theory of general
and industrial management.

Activities of Industrial Enterprise divided into six groups:

– Technical activities - Production, manufacture, adaptation.
– Commercial activities - buying, selling and exchange.
– Financial activities - search for and optimum use of
capital.
– Security activities - protection of property and persons.
– Accounting activities - stock-taking, balance sheet, cost,
and statistics.
– Managerial activities - planning, organization, command,
co- ordination and control.
Three major contributions to the theory of Management:

•A clear distinction between technical & managerial skills.

•Identified functions constituting the management process.
•Developed principles of management.

Fayol described management as a scientific process built up

of five immutable elements:

Planning,
Organizing,
Commanding,
Coordinating,
Controlling
 Principles of Management
1. Division of work
2. Authority and Responsibility
3. Discipline
4. Unity of Command
5. Unity of Direction
6. Emphasis on Subordination of Personal Interest to General or Common
Interest
7. Remuneration
8. Centralization/ Decentralization
9. Scalar Chain
10. Order
11. Equity
12. Stability of Tenure
13. Initiative
14. Esprit de corps (unity is strength)
 Bureaucratic Theory

• Max Weber, a German Sociologist developed the

bureaucratic model.

• Based on observation, Weber concluded that many

early organizations were inefficiently managed, with
decisions based on personal relationships and loyalty.

• Weber envisioned Org. would be managed on an

impersonal, rational basis. This form of Org. is
known as Bureaucracy.
 Bureaucracy Model
• Hierarchy of authority.

• Division of labour based upon functional specialization.

• A system of rules.

• Impersonality of interpersonal relationships.

• A system of work procedures.

• Placement of employees based upon technical competence

• Legal authority and power.

 Features of Bureaucracy Model

• Rigidity, impersonality and higher cost of controls.

• Anxiety due to pressure of conformity to rules and

procedure.

• Dependence on superior.

• Tendency to forget ultimate goals of the organization.

 Conclusion

• Bureaucracy provides a rigid model of an

organization.
• It does not account for important human
elements.
• Bureaucratic Model is preferred where change
is not anticipated.
• It is followed in government departments and
in large business organizations.
 Neoclassical Theory
• Neo-classical Theory was modified, improved and
extended version of classical theory.

• The theory gave greater emphasis to individual and group

relationship in the workplace.

• The theory pointed out the psychological and social

aspects of the workers as an individual and group
relationship in the workplace.

• It gained importance after the World War I

 Features of Neoclassical Approach
(i) The business organization is a social system.
(ii) Human factor is the most important element in
the social system.
(iii) Importance of social and psychological factors
in determining worker productivity and satisfaction.
(iv) The aim of the management is to develop
social and leadership skills in addition to technical
skills. It must be done for the welfare of the workers.
(v) Morale and productivity go hand-to-hand in an
organization.
 Human Relation Approach

• Elton Mayo is generally recognized as the father of the Human

Relations Movement.

• The human relations movement arose that how people relate

and interact within a group.

• A famous series of studies of human behaviour in work

situations was conducted at the Western Electric Company,
Chicago from 1924 to 1933.

• In 1927 a group of researchers led by Elton Mayo and Fritz J.

Roethlisberger and Dickson at the Harvard Business School
conducted Hawthorne Experiment.
 Hawthorne Experiment
• The outcome of the Hawthorne studies was that
workers' attitudes are associated with productivity.

• The workplace is a social system and informal group

influence could exert a powerful effect on
individual behavior.

• The style of supervision is an important factor in

increasing workers' job satisfaction.
 Hawthorne Experiment
• The studies began as an attempt to investigate the
ways to increase worker’s productivity by assessing
working conditions related to things such as lighting
levels, rest periods, length of a work day, informal
groupings, informal relationships, patterns of
communication, patterns of informal leadership etc.

• The purpose to investigate the relationship between

the productivity of workers and the working
conditions at work place.
 Hawthorne Experiment
The Hawthorne experiment consists of four parts.

• Illumination Experiment.
• Relay Assembly Test Room Experiment.
• Interviewing Programme.
• Bank Wiring Test Room Experiment.
 Illumination Experiment

• This experiment was conducted to establish relationship

between output and illumination.

• When the intensity of light was increased, the output also

increased. The output showed an upward trend even when the
illumination was gradually brought down to the normal level.

• Therefore, it was concluded that there is no consistent

relationship between output of workers and illumination in the
factory.

• There must be some other factor which affected productivity.

 Relay Assembly Test Room Experiment

• In this experiment, a small homogeneous work-group of six girls was

constituted.

• This phase aimed at knowing the impact of length of the working day,
rest hours, and other physical conditions.

• Productivity and morale increased considerably during the period of

the experiment. Productivity went on increasing and stabilized at a
high level even when all the improvements were taken away.

• The researchers concluded that socio-psychological factors such as

feeling of being important, recognition, attention, participation,
cohesive work-group, and non-directive supervision held the key for
higher productivity.
 Mass Interview Programme
• The researchers interviewed a large number of workers with
regard to their opinions on work, working conditions and
supervision.
• Initially, a direct approach was used whereby interviews asked
questions considered important by managers and researchers.
• The researchers observed that the replies of the workmen were
guarded. Therefore, this approach was replaced by an indirect
technique, where the interviewer simply listened to what the
workmen had to say.
• The findings confirmed the importance of social factors at
work in the total work environment.
 Bank Wiring Test Room Experiment
• This group comprised of 14 workers.

• The production records of this group were compared with their

earlier production records.

• It was observed that the group evolved its own production

norms for each individual worker, which was made lower than
those set by the management. Because of this, workers would
produce only that much, thereby defeating the incentive
system.

• Those workers who tried to produce more than the group

norms were isolated, harassed or punished by the group.
 Bank Wiring Test Room Experiment
The findings of the study are:-

• Each individual was restricting output.

• The group had its own "unofficial" standards of performance.
• Individual output remained fairly constant over a period of
time.
• Informal groups play an important role in the working of an
organization.
 Behavioral Science Approach

• Behavioral science and the study of organizational behavior emerged in the

1950s and 1960s.

• Several Sociologists and Psychologists, e.g., A.H. Maslow, Douglas

McGregor, Argyris, F. Herzberg, Rensis Likert and J.G. Likert, Kurt Lewin,
Keith Davis and others have made significant contributions to the
development of this approach.

• The behavioral movement came from various psychologists who focused

on the individual behavior of employees.

• It focused on applying conceptual and analytical tools to the problem of

understanding and predicting behavior in the workplace.
 Behavioral Science Approach
• The approach has contributed to the study of management
through its focus on personality, attitudes, values, motivation,
group behavior, leadership, communication, and conflict,
among other issues.

• It highlights the group and group relationships broadly to

judge the group behavior in the organization.

• The behavioural approach suggests how the knowledge of

human behaviour can be used in making people more effective
in the organisation.
 Propositions of Behavioral Science Approach
• It is an inter-disciplinary approach and integrates the
knowledge of different disciplines for the study of human
behavior.
• An organization is a socio-technical system.
• Recognizes individual differences.
• Behavioral Approach recognizes goal conflicts in the
organization and suggests reconciliation of the goals of the
individuals and the organization for the effectiveness and
efficiency of the organization.
• This approach emphasized on informal group to influence on
the attitudes, behavior and performance of employees.
• Behavioral Science approach stressed upon groups, group
behaviour and group dynamics.
 Modern Theory

• Modern theory considers an organization as an adaptive

system which has to adjust to changes in its environment.

• An organization is now defined as a structured process in

which individuals interact for attaining objectives.

Three Approaches of Modern Theory:-

• Systems Approach – Kenneth, etc.

• Contingent Approach – Tom Burns, Woodward, etc.

 System Approach
• Meaning of "System": The word system is derived from the
Greek word meaning to bring together or to combine.
A system is a set of interconnected and inter-related elements
or component parts to achieve certain goals.

A system has three significant parts:

• Every system is goal-oriented and it must have a purpose or

objective to be attained.
• In designing the system we must establish the necessary
arrangement of components.
• Process of transformation to Conversion as per plan so that the
outputs can achieve the objective of the system.
 Elements of System Approach
• An organization is an unified and integrative system.

• The boundary of a system classifies into two parts:- An open

system; A close system
A system is considered an open system because it interacts with the
environment. The system boundary is rigid in close system.

• The whole of a system are called sub-systems

• Management as a system is dynamic

• Systems Approach follows the law of synergy.

• Feedback is the key to system controls.

 Contingency Approach

• It integrates the various approaches is known as ‘contingency’

or ‘situational’ approach.

• They found that methods that were effective in one situation

would not work in other situations.

• Contingency approach is that there is no single best way of

managing application in all situations.
 Features of contingency approach
• The contingency approach stresses that there is no one best style of
leadership .
• Contingency Approach is action-oriented as it is directed towards
the application of systems concepts and the knowledge gained from
other approaches.
• Contingency theory attempts to determine the predictable
relationships between situations, actions and outcomes.
• Management should ‘match’ or ‘fit’ its approach to the
requirements of the particular situation. Management has to
exercise the action subject to environmental changes.
• It emphasizes the multivariate nature of organisations.
 Sources

• https://www.businessmanagementideas.com/
management/neoclassical-
theory/neoclassical-theory-of-
management/19763
• https://www.wisdomjobs.com/e-
university/principles-of-management-and-
organisational-behaviour-tutorial-
366/evolution-of-management-thought-
12679.html