Amity School of Business

Amity School of Business

BBA, SEMESTER I
MANAGEMENT FOUNDATIONS
(BBA 101) Module-1 (INTRODUCTION) Divya Goel
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Module-1 -INTRODUCTION

Contents:
Concept, Nature , scope and functions of Management. Levels of Management Evolutions and foundations of management theoriesClassical and Neo classical theories. Systems Approach to organization. Modern Organization theory.

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WHAT IS MANAGEMENT?
Management (from Old French mnagement the art of conducting, directing, from Latin Manu agere to lead by the hand) characterizes the process of leading and directing all or part of an organization, often a business, through the deployment and manipulation of resources (human, financial, material, intellectual or intangible).
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Management is the process of achieving the objectives of the business organization by bringing together human, physical, and financial resources in an optimum combination and making the best decision for the organization while taking into consideration its operating environment.

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WHY STUDY MANAGEMENT ?

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WHO ARE MANAGERS? Manager

Someone who works with and through other people by coordinating and integrating their work activities in order to accomplish organizational goals.

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Classification
First-line Managers Are at the lowest level of management and manage the work of non-managerial employees. Middle Managers Manage the work of first-line managers. Top Managers Are responsible for making organization-wide decisions and establishing plans and goals that affect the entire organization.

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Levels of Management
Top management Board chairman, company presidents, the executive vice presidents, i.e. the people who coordinate all the specialties and make policies for the company as a whole.

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Middle management- A vast and diverse group that includes sales managers, plant managers, personnel managers and many other department heads. Lower management- Foremen and white collar supervisors.

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MANAGERIAL SKILLS
Managerial Skills Professor Robert L. Katz has popularized the concept of "Managerial Skills" which was earlier developed by Henri Fayol.

Technical skills Human skills Conceptual skills

5 more skills can be stated : 1. Design skills 2. Administrative skills 3. Decision Making skills 4. Communication skills 5. Leadership skills
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Mintzbergs 10 Managerial Roles

DECISIONAL Entrepreneur Initiate improvement projects, identify new ideas, delegate idea responsibility to others Disturbance Handler Take corrective action during disputes or crises; resolve conflicts among subordinates; adapt to environmental crises Resource Allocator Decide who gets resources, scheduling, budgeting, setting priorities Negotiator Represent department during negotiation of union contracts, sales, purchases, budgets
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Mintzbergs 10 Managerial Roles

INTERPERSONAL Figurehead Performs ceremonial and symbolic duties such as greeting visitors, signing legal documents Leader Direct and motivate subordinates, training, counseling, and communicating with subordinates Liaison Maintain information links both inside and outside organization; use mail, phone calls, meetings
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Mintzbergs 10 Managerial Roles

INFORMATIONAL Monitor Seek and receive information, scan periodicals and reports, maintain personal contacts, Changes within and outside the organization Disseminator Forward information to other organization members; send memos and reports, make phone calls Spokesperson Transmit information to outsiders through speeches, reports, memos; represent departmental interests
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MANAGERS DO MANAGEMENT

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CHANGES IMPACTING THE MANAGERS JOB

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Functions of Management
Planning Organizing Staffing Directing Controlling
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Management Perspectives Over Time

2000 The Technology-Driven Workplace 2010 1990 The Learning Organization 2010 1980 Total Quality Management 2000 1970 Contingency Views 2000 1950 Systems Theory 2000 1940 Management Science Perspective 1990 1930 Humanistic Perspective 1990 1890 Classical 1940 2010 1870
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Classical Perspective: 3000 B.C.

Rational, scientific approach to management make organizations efficient operating machines. Classical perspective represent: Scientific Management (Taylor) Bureaucratic Organizations( Weber) Administrative Principles ( Henry Fayol)
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1. Scientific Management:
General Approach Developed standard method for performing each job. Selected workers with appropriate abilities for each job. Trained workers in standard method. Supported workers by planning work and eliminating interruptions. Provided wage incentives to workers for increased output.
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Frederick Winslow Taylor 1856-1915

1. 2. 3. 4. 5. Time and motion study Differential payment Drastic reorganization of supervision Scientific recruitment and training Intimate friendly cooperation between management and workers
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Principles of Scientific Management

Replacing Rule of Thumb with Science Harmony in group action Co- operation Maximum Output Development of Workers

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Henry Laurence Gantt (1861-1919)

Abandoning the differential rate system as having too little motivational impact Gantt came up with new idea. He proposed that every worker who finished days assigned work load would win 50 percent bonus. The supervisor would earn a bonus for each workers who reached the daily standard , plus a extra bonus if all the workers reached it.
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Cont

This Gantt reasoned would spur super wiser to train their workers to do a better job. Every workers progress was rated publicly and recorded on individual bar charts black on days the worker made the standard and Red when he or she fell below it. Gantt originated a Charting system for production. The Critical Path Method (CPM) originated by DuPont and Program Evaluation and Review Technique (PERT), developed by navy and lotus 1-2-3 system were devised as a direct outcome of Gantt's contribution.
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Frank B. and Lillian M. Gilbreth

To the scientific management movement as a husband and wife team. Lillian and Frank collaborated on fatigue and motion studies or Time and Motion Studies and focus on ways on promoting the individual workers welfare. The ultimate aim of scientific management was to help workers reach their full potential as human beings In their conception motion and fatigue were intertwined every motion that was eliminated reduced fatigue.
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FRANK B. AND LILLIAN M.GILBRETH(18681924) AND (1878-1972)

Frank and Lillian Gilbreth Focused on increasing worker productivity through the reduction of wasted motion

Developed the micro chronometer to time worker motions and optimize performance How Do Todays Managers Use Scientific Management? Use time and motion studies to increase productivity Hire the best qualified employees Design incentive systems based on output
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Scientific Management
Contributions
Demonstrated the importance of compensation for performance. Initiated the careful study of tasks and jobs. Demonstrated the importance of personnel and their training.

Criticisms
Did not appreciate social context of work and higher needs of workers. Did not acknowledge variance among individuals. Tended to regard workers as uninformed and ignored their ideas 26

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2. Bureaucracy Organizations
Max Weber 1864-1920 is the contributor. Bureaucracy: implies an organization characterized by rules, procedures, impersonal relations and elaborate a rigid hierarchy of authority-responsibility relations. Prior to Bureaucracy Organizations European employees were loyal to a single individual rather than to the organization or its mission Resources used to realize individual desires rather than organizational goals

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Elements of Bureaucracy Organizations

Division of labor

Impersonal Relations

Hierarchy

Records and formal selection

Rules , Regulations & procedures

Administrative Class

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MAX WEBER
The Bureaucracy Theory - An Efficient Organization should be based on 5 principles. 1. A managers formal authority should be derived from the position held within the organization. 2. People should occupy positions in an organization based on their performance / Qualifications and not social standing or personal contact. 3. Each Positions authority , task responsibility and working relationship should be clearly specified. 4. Reporting relationships should be clear and Organizations hierarchy should enable effective Authority. 5. To control behavior , managers must create a well defined system of rules and norms.
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3. Administrative Theory/Principles
Contributors: Henry Fayol, Mary Parker, and Chester I. Barnard Focus:
Organization rather than the individual. Delineated the management functions of planning, organizing, commanding, coordinating, and controlling
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Henry Fayol (1841-1925) developed administrative theory which explains the process of managing an organization from top management perspective. Fayol gave five management functions: Planning, organizing, commanding, coordination, and controlling. Developed 14 universal principles of management. Fayol divided general and industrial management into following six functions 1. Technical activities (production, manufacture, adaptation). 2. Commercial activities (buying, selling and exchange). 3. Financial activities (search for and optimum use of capital). 4. Security activities (protection of property and persons). 5. Accounting activities (stock taking, balance sheet, cost, and statistics). 6. Managerial activities (planning, organizing, command, coordination and control)
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Henri Fayols universal 14 principles of management

Division of labor Authority Discipline Unity of command Unity of direction Subordination of individual interest Remuneration

Centralization Scalar chain Order Equity Stability and tenure of staff Initiative Esprit de corps
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FAYOLS CONTRIBUTION

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He gave overall concepts of general management and suggested the basic functions of management. He recommended the selection and training of workers and managers. He also advocated the use of organisation charts. He suggested certain qualities of managers winch include physical, mental, moral, educational technical and experience. Fayols theory of management was the first complete theory of management as we understand today. It incorporated proven principles, elements, procedures and techniques based on his practical experience. Henry Fayol came to be recognised as the founder of modern management theory.
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