PRINCIPLES AND PRACTICE OF

MANAGEMENT
SYLLUBUS
5 UNITS
UNIT 1 Introduction to management concept,
Evolution of management, social
responsibility 0f managers, and
Ethics in managing
UNIT 2- Planning ,Decision making, Organizing
UNIT 3- Staffing , Directing, Motivation
UNIT 4- Leadership, Controlling,
UNIT 5- Total Quality control

Suggested reading

1. Stoner, freeman &Gilbert jr MANAGEMENT(PH)
2. Koontz Harlod&Weihrich- Essentials of Management
3. Robbins &Coulter- MANAGEMENT(PH,9
TH
Edition)
4. Robbins S.P. and Decenzo David Fundamentals of
Management :Essential concepts and applications
(person education,6
th
edition)
5. Weihrich Heinz and koontz Harold- Management: A
Global and Entrepreneurial Perspective(McGraw hill,
12
th
edition)

CONTRIBUTION OF OTHER DISCIPLINES



ECONOMICS
SOCIOLOGY
PSYCHOLOGY
ANTHRPOLOGY
STATISTICS
MANAGEMENT
What is management?
The verb manage comes from the
Italian maneggiare (to handle especially
tools),
which in turn derives from
the Latin manus (hand)
French word mesnagement (later mnagement)
influenced the development in meaning of
the English word management in the 17th
and 18th centuries.
[1]---
Wikipedia

Management is the art of getting things done
Through other people.Mary Parker Follet

Management is simply the process of decision
making and control over the action of human
beings for the expressed purpose of attaining
pre- determined goals.



Management is the art of securing maximum
results with minimum efforts so as to secure
Maximum prosperity and happiness for both
employer and employee and give the public
best
possible service. JOHAN MEE
Management theory jungle



MANAGEMENT
The Process of PLANNING,ORAGANISING,LEADING,
And CONTROLLING the work of organization
Members and of using all available organizational
resources to reach stated organizational goals.
ORGANIZATION: Two or more people who work
together in a structured way to achieve a
specific goal or a set of goals.
Profit organizations: Coca- Cola , Microsoft etc
Nonprofit organizations: Cry, Government -
hospitals, church etc


MANGEMENT FUNCTIONS
OR
PROCESS OF MANAGEMENT

Organizing, planning, leading , controlling(4)
- Newmen and summer
Planning , Organizing, Commanding,
Coordinating And Controlling(5) Henry Fayol



POSDCORB
P--- PLANNING
O--- ORGANISING
S--- STAFFING
D--- DIRECTING
C--- COORDINATING
R--- REPORTING
B--- BUGETING
--Luther Gulik


Men and women
Material
Machines
Methods
Money
Markets


The meaning of management
BASIC
RESOURCES:
The 6Ms
PLANNING
ORGANISI
NG
ACTUATIN
G
FUNDAMENTAL FUNCTIONS:
The process of Management
STATED
OBJECTIVE:
End Results
cc CONTROLLIN
G
Planning: is the function that determines in advance what
should be done . It is a process of deciding the business
objectives and charting out the methods of attaining those
objectives .
Organizing: To organize a business is to provide it with
everything useful to its functioning i.e. personnel, raw
materials, tools capital
Structural consideration i.e. chain of command division of
labor and assignment of responsibility





Directing: This function can be called by various
name: LEADING,DIRECTING,MOTIVATING
ACTUATING
In this function the manager explains to his people
what they have to do and helps them do it to the
best of their ability.
Communication: is the process of passing
information and understanding one person to
another
Leadership: is the process by which a manager
guides and influences the work of his
subordinate.
motivation: arousing desire in the minds of
workers to give their best to enterprise.
Controlling: The process of monitoring
organizational progress towards goal
attainment.

ORGANIZING
Determining how best
to group activities and
resources
Setting the
organization s goals
and deciding how best
to achieve them
Monitoring and
correcting ongoing
activities to facilitate
goal attainment
CONTROLLING
Motivating members of
the organization to
work in the best
interests of the
organization
LEADING
PLANNING AND
DECISION MAKING
THE MANGEMENT
PROCESS
Efficiency vs. effectiveness
Effectiveness: A central element in the process
of management that entails achieving a stated
organizational objective.
Efficiency: A central element in the process of
management that balances the amount of
resources used to achieve an objective against
what was actually accomplished.

Balancing effectiveness and efficiency






TOO MUCH EMPHASIS ON EFFECTIVENESS
Efficiency
Limited
resources are
wasted
Effectiveness
The job gets done,
but
Balancing effectiveness and efficiency






TOO MUCH EMPHASIS ON EFFICIENCY
Effectiveness
The job does
not done ,
because
Efficiency
Available resources
are underutilized
Balancing effectiveness and efficiency






BALANCE EMPHASIS ON EFFECTIVENESS ANDEFFICENCY
Effectiveness
The job gets done , and-
---
Efficiency
Limited
Resources are not
wasted


1. Universality : it is common and essential element in all
enterprises. Managers perform more or less the same functions
irrespective of their position or nature of the organization. The basic
principles of management can be applied in all managerial
situations regardless of the size, nature and location of the
organization.
2. Purposeful: : Management is always aimed at achieving
organizational goals and purposes. The success of management is
measured by the extent to which the desired objectives are attained























Nature of Management


3 Social Process: Management essentially involves managing
people organized in work groups. It includes retaining,
Developing and motivating people at work, as well as taking care
of their satisfaction as social beings. All these interpersonal
relations and interactions make the management as a social
process.
4 Coordinating force: Management coordinates the efforts
of organization members through orderly arrangement of inter-
related activities so as to avoid duplication and overlapping.
Management reconciles the individual goals with the
organizational goals and integrates human and physical
resources.


5 Intangible :Management is intangible. It is an unseen force.
Its presence can be felt everywhere by the results of its effort
which comes in the form of orderliness, adequate work output,
satisfactory working climate, employees satisfaction etc.
6 Continuous process: Management is a dynamic and an
on-going process. The cycle of management continues to
operate so long as there is organised action for the achievement
of group goals.



7 Composite process: Functions of management cannot be
undertaken sequentially, independent of each other.
Management is a composite process made up of individual
ingredients. All the functions are performed by involving several
ingredients. Therefore, the whole process is integrative and
performed in a network fashion.
8 Creative organ :Management creates energetic effect by
producing results which are more than the sum of individual
efforts of the group members. It provides sequence
to operations, matches jobs to goals, connects work to physical
and financial resources. It provides creative ideas, new
imaginations and visions to group efforts.

9 Multidisciplinary : Management is basically
multidisciplinary . It implies that , although management has
been developed as separate discipline, it draws freely ideas
and concepts from various discipline i.e. psychology ,
sociology, anthropology, economics , statistics, operation
research
10 Dynamic nature of principles :Principle is a
fundamental truth which establishes a cause and effect
relationships of a function. Management principle are
flexible in nature and change with the change in
environment .due to Continuous development in field ,
many old principles are being changed by new one.


11. Relative , not Absolute principles: Management
principles are relative , not absolute , and they should be
applied according to the need of organization . Each
organization is different from others. The difference may exist
because of time, place, socio-cultural factors etc. A particular
management principle has different strength in different
conditions.
Management principles should be applied in
the light of prevailing conditions .

IMPORTANCE OF MANAGEMENT
1 Optimum Utilization of Resources :Management
tries to make effective utilization of resources . The resources are
scare in nature and to meet the demand of society , their
contribution should be maximum for general interest of society.
Management utilizes all the physical & human resources
productively. This leads to efficacy in management
2 Development of resources : Management develops
various resources . This is true with human as well as non
human factors.
3 Integrated various interest groups: There are various
interest groups and they put pressure over other groups for
maximum share in the combined out put. Ex: BUSINESS
ORGANIZATION shareholder , employees, government etc.





4.Essentials for Prosperity of Society:

5.Establishes Sound Organization:

6.Helps the employees in achieving personal
objectives

8. It helps in Achieving Group Goals It arranges the
factors of production, assembles and organizes the resources, integrates the
resources in effective manner to achieve goals. It directs group efforts towards
achievement of pre-determined goals. By defining objective of organization clearly
there would be no wastage of time, money and effort. Management converts
disorganized resources of men, machines, money etc. into useful enterprise. These
resources are coordinated, directed and controlled .
9. ENGINE FOR GROWTH :
10. PROMOTING INTERNATIONAL UNDERSTANDING:

MANAGEMENT ART OR SCIENCE
?
WHAT IS SCIENCE?
Science is body of knowledge developed
systematically based on observation,
measurement , experimentation and drawing
inferences based on data.
The knowledge can be verified through cause-
effect relationship, knowledge provides
principles , theory and laws.


Management satisfies characteristics of science:
Management knowledge is developed through a
number of system like input out put system,
organizational system etc
Management knowledge is developed through
observation , measurement and experimentation.
Inferences are drawn based on data analysis.
Management is a developing science
(can not be an exact science)like physics, chemistry

What is an art?
Art is related to bringing of a desired result
through the application of skill and creativity.
Science ---- WHY
Art ------------- KNOW HOW & SKILLS
Art is associated with application of knowledge or science or of
expertness in performance.
so management is both science and art
To be a successful manager , one requires knowledge of
management principles and the knowledge of how the
knowledge can be utilized.

Managing as practice is an art, the knowledge
underlying the practice is a science.
Management as a profession
Profession is an occupation for which specialized
knowledge , skill, and training are required
and the use of these skills is not meant for self
satisfaction but these are used for larger
interests of the society and success of the use
of these skills is measured not in the terms of
money alone.
Characteristics of a profession
1. Existence of an organised and systematized
body of knowledge: Management has developed as distinct
body of knowledge over the last seven eight decades. The
development of knowledge , in management is emerged duet to
requirement for managing complex and large organization in a better
way.
2. Formal method of acquisition of knowledge:
An individual can enter into a profession only after getting knowledge
and skills through formal training.
3. Existence of an association : an occupation should have
an association .if not so; the occupation can not be consider as
profession --AIMA


4. Ethical code: There are some ethical standards for every
profession . Every individual of the concerned profession is expected to
maintain conformity with these standards .
5. Service motive :Service motive insists the professionals keep
social interest in the mind while charging fees for there professional
services . The success of any profession is not based on the money it
earns but by the amount of social service it provides . Management
provide more social service .
Obstacles to management being a profession
1.There is no uniform and standard criteria for the
evaluation of managerial performance.
2. Management executives have not uniform clients and
do not perform uniform activities.
3. Person without a degree or a diploma in management
are also doing well like persons have a degree or
diploma in management.
4. The theory of management of management is still
changing and new principles are also being developed.
MANAGEMENT VS ADMINSTRATION


There are three views
1.Administration is above management:
2. Administration is a part of management:
3.Mangement and administration are same:
1.Administration is above management: According
to one group of writers ,Sheldon(1923 philosophy of
management), Spriegal Milward : Administration involves
thinking". It is a top level function which is center around
the determination of plan, policies, and objectives of a
business enterprises.
On the other hand , Management , involves Doing. It is a
lower level function which is concerned with the execution
and direction of the policies and operations.
Accordingly, at top level , administration is more important
and one move down in organization Management become
more important.


Management vs. administration


1.Nature of work
Administration: It is concerned about the
determination of objectives and major policies of
an organization.
Management: It puts into action the policies and
plans laid down by the administration.

2.Type of function
Administration: It is a determinative function.
Management: It is an executive function.
3.Scope
Administration: It takes major decisions of an
enterprise as a whole.
Management: It takes decisions within the
framework set by the administration.

3.

4. Level of authority
Administration: It is a top-level activity.
Management: It is a middle level activity
5. Nature of status
Administration: It consists of owners who invest
capital in and receive profits from an enterprise.
Management: It is a group of managerial personnel
who use their specialized knowledge to fulfill the
objectives of an enterprise.

5.







Lower

Administration
(policy formulation)
Management
(policy execution)
O
r
g
a
n
i
z
a
t
i
o
n
a
l

l
e
v
e
l

Functions in organization
Top
2. Administration is a part of management:
According to second view EFL Brech and other , management
is comprehensive generic term which includes Administration
. Management as comprehensive generic function embracing
the entire process of PLANNING,ORGANISING,DIRECTING and
CONTROLLING.
Administration is only a branch of management. Which
encompasses two of its functions Planning and controlling


3.Mangement and administration are same:
According
to another view expressed by Peter drucker the basic
difference b/w Management &Administration lies in the use
of these words .
The governance of non business institution (govt., army,
church) is generally called Administration.
While governance of business enterprises called as
Management.
economic performance is chief dimension







Lower


Administration
(policy formulation)
Management
(policy execution)
L
e
v
e
l
s

o
f

m
a
n
a
g
e
m
e
n
t

Management functions
Top
Middle
Management functions at different level

Management skills

HENRI FAYOL identified three basic kind of skills
Every manager needs all three.
1. Technical skill: The ability to use the procedures,
techniques , and knowledge of a specialized field.
2. Human skill : The ability to work with, understand, and
motivate other people as individuals or in groups.
3.Conceptual skill : The ability to coordinate and integrate
all of an organization's interests and activities

Levels of management
It is differentiation of managers in to three
basic categories
1.First line managers: manage work of non
managerial employees . First line managers
are generally called as supervisors but may be
also be called as shift managers ,district
managers, department managers or office
managers.


2. Middle managers :are those found between the
lowest and top levels of the organization . These
managers manage the work of first line managers and
may have titles as regional managers , Project leader ,
store manager , or division manager.
3. Top managers : Top managers are responsible for
making organization wide decisions and establishing the
plans and goals that affect the entire organization. E.g.
executive vice president ,president, managing director ,
chief operating officer
TOP MANAGERS
MIDDLE MANAGERS
FIRST-LINE
MANAGERS
AREAS OF MANGEMENT
Levels of Management
ORGANIZATIONAL LEVELS
TOP
MIDDLE
SUPER
VISOAR
Y
HUMAN
TECHNICAL
CONCEPTUAL
Knowledge and skills required
Knowledge and skills required for management vary with the org .levels
QUALITIES OF MANAGER
1.Good Communicator
The ability to communicate with people at all
levels is almost always named as the most
important skill by managers and team
members. leadership calls for clear
communication about goals, responsibility,
performance, expectations and feedback.

2.Integrity
One of the most important things a manager is that his or her
actions, and not words, set the modus operandi for the team.
Good manager demands commitment to, and demonstration of,
ethical practices. Creating standards for ethical behavior for
oneself and living by these standards, as well as rewarding those
who exemplify these practices. integrity represents nothing less
than a set of values others share, behavior consistent with values
and dedication to honesty with self and team members. In other
words the leader "walks the talk" and in the process earns trust.

3. Enthusiasm :
Plain and simple, we don't like manager who are
negative - they bring us down. We want leaders with
enthusiasm, with a bounce in their step, with a can-
do attitude. we want to feel alive. We tend to follow
people with a can-do attitude, not those who give us
200 reasons why something can't be done.
Enthusiastic leaders are committed to their goals
and express this commitment through optimism.

4.Empathy:
What is the difference between empathy and
sympathy? in sympathy the subject is principally
absorbed in his or her own feelings as they are
projected into the object and has little concern
for the reality and validity of the object's special
experience. Empathy, on the other hand,
presupposes the existence of the object as a
separate individual, entitled to his or her own
feelings, ideas and emotional history.

5.Ability to Delegate Tasks
Trust is an essential element in the relationship
of a manager and his or her team. You
demonstrate your trust in others through
your actions - how much you check and
control their work, how much you delegate
and how much you allow people to
participate. Individuals who are unable to
trust other people often fail as manager .
6. Cool Under Pressure
In a perfect world, task would be delivered on
time, under budget and with no major
problems or obstacles to overcome. But we
don't live in a perfect world . A manager with
a hardy attitude will take these problems in
stride. When leaders encounter a stressful
event.

7. A good listener:
Working with a team means that you need to
understand the attitudes of your employees.
Try to understand their motivations and in
case of problems try to find solutions for their
problems. A good listener is always someone
who has an open mind for suggestions of
employees of his team.

8. Self confidence:
Believe in yourself and your capacities. Don't
become nervous when something fails and be
optimistic for your next plans. Try to avoid
stress and don't fear that you can't reach your
goals.

9. Flexibility and patience:
A good manager needs to give commands about the
necessary tasks but it is important that you are
flexible with your team. Give your employees the
possibility to give their opinion how the work will be
executed.
Flexibility means that there is a possibility of making an
agreement. Don't take an attitude that you are the
boss and only you know the right decisions. Give your
employees the necessary time for their work. Patience
is the key to have success!

10.Problem Solving Skills
Although an effective manager is said to share
problem-solving responsibilities with the team,
we expect manager to have excellent problem-
solving skills themselves.

11. Team-Building Skills:
A manager provides the environment that holds the
team together in common purpose . In order for a team
to progress from a group of strangers to a single
cohesive unit, the manager must understand the
process and dynamics required for this transformation.
He or she must also know the appropriate leadership
style to use during each stage of team development.
The leader must also have an understanding of the
different team players styles and how to capitalize on
each at the proper time, for the problem at hand.

Evolution of management
The period between 1700 and 1850 highlights the
industrial revolution and writings of the classical
economist .
Adam smith wealth of nation (1937) division of
labour .
Turgout explained importance of direction and
control (reflections of on the formation and
distribution of riches 1922)
Jeans say -importance of planning

Early writing

Sun Tzu's The Art of War
Written by Chinese general Sun Tzu in the 6th century BC, The Art of
War is a military strategy book that, for managerial purposes,
recommends being aware of and acting on strengths and
weaknesses of both a manager's organization
Niccol Machiavelli's The Prince
Believing that people were motivated by self-interest, Niccol
Machiavelli wrote The Prince in 1513 as advice for the leadership
of Florence, Italy.
[5]
Machiavelli recommended that leaders use
fearbut not hatredto maintain control.


Evolution of Modern Management
Began in the industrial revolution in the late 19th
century as:
Managers of organizations began seeking ways to better
satisfy customer needs.
Large-scale mechanized manufacturing began to supplanting
small-scale craft production in the ways in which goods
were produced.
Social problems developed in the large groups of workers
employed under the factory system.
Managers began to focus on increasing the efficiency of the
worker-task mix.

The evolution of management thought can be
studied in three part as under
1.Early classical approaches :represented by
scientific management , administrative
management and bureaucracy
2.neo-classical approaches: represented by human
relations movement and behavioral approach.
3. Modern approaches: represented by
quantitative approach, systems approach and
contingency approach.

Figur 2.1
Source:
Job Specialization and the Division of Labor
Adam Smith (18th century economist)
Observed that firms manufactured pins in one of two
different ways:
Craft-styleeach worker did all steps.
Productioneach worker specialized in one step.
Realized that job specialization resulted in much higher
efficiency and productivity
Breaking down the total job allowed for the division of labor
in which workers became very skilled at their specific tasks.

Scientific management : F.W. Taylor(1856-1915)

Father of scientific management(26 years span)
Work in three company midavel steel , simonds
and rolling machines and Bethlehem steel.
contribution of f.w.taylor
1. time motion study: replaced the old rule of
thumb knowledge of work man. Each motion of
a job was to be timed with the help of stop
watch and shorter and the fewer motion were to
be developed.
F.W.TAYLOR (1856-1915)
FATHER OF SCIENTIFIC MANAGEMENT

Maximize worker capacity and
profits
PROBLEM: Get employees to
work at their maximum capacity
PRIMARY FOCUS: TASKS
2. Differential payment: Taylor introduced a new
payment plan called differential piece work , in
which he linked incentives with production. a
worker receive low piece rate if he produce a
standard number of piece and high rate if he
surpasses standard.
3. Drastic reorganization of supervision: Taylor
suggested two new concepts
(i) Separation of planning and doing
(ii) Functional foremanship
4.Sientific recruitment and training :Taylor
emphasized the need for scientific selection and development of
worker.
5. Intimate friendly cooperation between
Management and Workers : a complete mental
revolution on the part of management and labour was
required.
Taylor believed that management and labour had a
common interest in increasing productivity.
After Taylor Henry Gantt and gilbreth contributed
to scientific management
Gantt: 1.correct methods and skills are important
2.saw importance of human factor in
productivity and propound the concept of
motivation as we understand it today
3. introduced two new features in taylors
incentive scheme.
( a) a worker who finished a days assigned
workload was to win 50%bonus for that day.
(b) the foreman too was earn bonus for each who
reached the daily standard.



Gantt also developed the idea of rating an
employees work publicly. every works progress
recorded on individual bar chart and inked in
black on days he or she completed the standard
and in red on days he and she fell below.
This system is called as Gantt chart is still in use
today
Frank and Lillian Gilbreth

Contributed to scientific management movement
as a husband and wife team.
Made motion and fatigue study
Classified all movements employed in industrial
work in to 17 basic type called therbligs.
According to gilbreths, motion and fatigue studies
raised workers morale , not only because of their
physical benefits but also because they
demonstrated management concern for the
worker.

Contribution of scientific management

1.Time and motion study made us, aware that the tools and physical
movements involved in a task can be made more efficient and
rational .
2.Scientific management stressed on scientific selection of workers ,
it has made us recognize that without ability and training a person
can not be expected to do his job properly.
3.Scientific management gave importance to work design encouraged
manager to seek that one best way of doing a job.
scientific management not only developed a
rational approach to solving a problems but also
contributed a great deal to the
professionalization of management.
Criticism of Scientific Management
1.Taylors belief that economic incentives are strong
enough to motivate workers for increased production
proved wrong. No man is entirely an economic man
2. taylors time and motion study is not accepted as entirely
scientific. This is because two time studies done by two separate
individuals may time the same job entirely differently.
3. Separation of planning and doing and greater specialization
inherent in the system tended to reduced the need for skill and
produce greater monopoly of work. Taking order form 7to8
bosses resulted in confusion .
4 Advances in methods and better tools and machines eliminate
some workers.



Taylors Theory of Scientific Management


Application in the Modern Workplace
Assembly Line Plants as Prototypical Examples
Prisoners of Taylorism
System of Remuneration (quotas - commission)
Re-Design - Reengineering
Benchmarking
Data are used to refine, improve, change, modify, and
eliminate organizational processes




Administrative Management

Henry fayol(1841-1925) father of administrative management .
He was a French mining engineer turned a leading industrialist and
successful manager.
Fayol developed broad administrative principles applicable to general
and higher level managerial levels.
He written a book general and industrial administration" in 1916.
Translated in English in 1929.
Fayol provided broader analytical framework of process of
administration.
His perspective ,unlike the taylor extended beyond the shop level and
physical production process and was of macro nature covering the
general administrative and managerial functions and process at
organizational level.



Henry fayol (1841-1925)
Father of administrative management


Fayol divided activities in to six groups: technical, commercial,
financial, accounting, security and administrative or managerial
Fayol defined management in to five functions : planning organizing
commending coordinating and controlling
Fayol presented 14 principles of management

Fayol presented 14 principles of
management
1. Division of work: Division of work in the management
process can produces more and better work with the same
efforts. Various function of management can not be
performed efficiently by a single proprietors or by a group of
directors. they must be entrusted to specialists in related field.
2. Discipline: the obedience to authority ,observance of the
rules, service and norms of performance respect for agreements,
sincere efforts for given jobs respect for superiors etc means to
maintain discipline .
a. good supervision at all level
b. clear and fair agreement b/w the employees and employer.
c. Judicious application of penalties




3.Authority and responsibility: manager should have
the right to give orders and power to exact obedience. A
manager may exercise forma authority and personal
power.
Responsibility is closely associated with authority.
4. Unity of commend: each employee should receive
instructions about a particular work from one superior
only.


5.Unity of direction: It means there should be
complete identity b/w individual and
organizational goals on the one hand and b/w
departmental goals on other hand.
6. Subordination of individual interests to general
interest :
7. Remuneration: The remuneration paid to the
personnel of the firm should be fair. It should be based
on general business conduct, cost of living ,productivity
of concern employees and capacity of firm to pay.
8. Centralization: if subordinates are given more role and
importance in the management and organization of the firm , it
is decentralization. Management must decide the degree of
centralization or decentralization of authority on the basis of
nature of circumstances , size of undertaking, the type of
activities and the nature of the organization.
9.Scalar chain :scalar chain means the hierarchy of authority from
the highest executive to the lowest one. It states the superiors
subordinates relationship and authority of superiors in relation
to subordinates at various levels. as per this principle , the
orders or communication should pass through the proper
channels of authority along the scalar chain. But in case there is
need for swift action , the proper channels of authority may be
short circuited by making direct contact (called gang plank)
with the concerned authority


10. Order: To put things in order need efforts
.Management should obtain orderliness in work
through suitable organization of men and materials.
The principle of right place for every thing and every
man should be observed by the management. To
observe this principle there is need for scientific
selection of competent personnel, correct assignment
of duties to personnel and good organization
11. Equity: equity means equality of fair treatment.
Employee expect management to be equally to every
body. Equity ensures healthy industrial relations b/w
management and labour which is essential for the
successful working of the enterprises .
12.Satbility of tenure of personnel: In order to motivate
workers to do more and better work it is necessary
that they should be assured security of job by the
management .
13. Initiative: initiative means to think out and execute
plan. Zeal and energy of employees are augmented by
initiative . Innovation is possible only where the
employees are encouraged to take initiative.


14. Esprit the corps: This means team spirit. union
is strength
Management should create the team spirit
among the employee.

Contribution of administrative management

1.There should be clear line of authority , from the top
management down to lowest employee.
2.Authority and responsibility of each employees should be
communicated to him in writing.
3 .Each individual should perform one function only.
4.The span of control of a manager should never exceed
six.
5.Authority can be delegated but not responsibility

Other scholars contribution to administrative
management:
James D. mooney and Alan c. railey- two general
motors executive wrote a book on ward
industry1931 later renamed principle of
organization
colonelL.Urick of u.k. wrote a book The elements
of administration". in this book he assemble the
concept and principle of taylor, fayol, mooney,
raily and other early scholars of management
Criticism of fayols principles
1 many of fayols principles are contradictory and there is nothing in
fayols writing to indicate which one is to apply.(simon-
administrative behavior)
2 These principles are based on few case studies only and have not
been tested empirically.
3 These principles are stated as unconditional statements of what to
be done in all circumstances.
4 These principles (chain of command , unity of direction, and span
of control) result in to formation of mechanistic organization
structure , insensitive to employees social and psychological
needs .
5 Principle are based on that organization is a close system .but
organizations are open system
Bureaucracy: Max weber
Max weber a German sociologist, is know as the
father of bureaucracy.
About 1910 he made a study of different types of business and
govt. organizations and distinguish 3 basic types of
administration: Leader oriented.
Tradition oriented
bureaucratic.
He has written book the theory of social and
economic organization
21 April 1864 - 14 June 1920
Max weber-father of bureaucracy
Important features of bureaucratic administration
1.There is insistence on following standard rules :
Weber believed that the authority in an organization should not
be governed by the personal preferences of the employer but it
should governed by standard rules. this provide equality in
treatment of subordinates and continuity and predictability of
action .
2. There is a systematic division of work :
3. Principle of hierarchy is followed: Each lower officer is
under control and supervision of a higher one.
4. It is necessary for the individual to have knowledge of
and training in the application of rules: b/c these
forms the basis on which legitimacy is granted to his
authority


5.Administrative act , decisions and rules are
recorded in writing: this makes the organization
independent of people besides making peoples
understanding more accurate.
6.There is rational Personnel Administration: people are
selected on the basis of their qualities and paid
according to their positions in the hierarchy. promotion
are made systematically . There is an emphasis on
wining people's loyalty and commitment .
EXHIBIT 2.4: WEBERS IDEAL BUREAUCRACY
2-12
Limitations of Bureaucracy
1. Over conformity to rules:
2. Buck (responsibility)passing:
3. Categorization of queries:
4. Displacements of goals:
5. No real right to appeal:
6. Neglect of informal group
7. Rigid structure
8. Inability to satisfy the needs of mature
individuals


Neo classical approaches
THE HUMAN RELATION MOVEMET
The human relation movement emerged in part because
managers found that Taylor's scientific management and
fayols administrative management did not quiet achieve
complete production efficiency and work place
harmony. Managers still feel difficulties because
employees did not always follow predicted or rational
pattern of behavior.
Starts looking on People side of their organization.

Elton Mayo
Organizational Behavior (cont.)
Hawthorne Studies
- started in 1924 at Western Electric Company
began with illumination studies
intensity of illumination not related to
productivity
- Elton Mayo - studies of job design revealed the
importance of social norms as determinants of
individual work behavior - changed the dominant
view that employees were no different from any
other machines
2-16
Prof.Elton mayo and his colleagues at western
electric company plant from 1927 to 1932
performed experiments. Known as Hawthorne
experiments.
We can divide these experiments in to four parts
1.Illumination experiments
2.Relay assembly test room
3.Interviewing programme
4. Bank wiring test room

1.Illumination experiments:

This was the first phase of study. in this phase popular
belief that the productivity is positively correlated with
illumination was tested.
they form 2 groups of worker in different building. one
group called worker worked under constant level of
illumination and other group called test group called as
test group worked under changing levels of illumination.
Post test productivity of two groups was than compared it
was found that illumination affected production only
marginally.



2.Relay assembly test room

In this phase object of study was broadened. it now aimed
at knowing not only the impact of illumination on
production but also other factors as length of working
day , rest pause, their frequency and duration and other
physical conditions .
A group of 6 women workers , who were friendly to each
other, was selected for this experiment. the supervisor
and researchers acted as their friend, philosopher and
guide . During the study, several variation were made in
working conditions to find which combination of
conditions was most ideal for production.


Surprisingly, the researchers found that production
has no relation with working conditions.
Researcher attributed this phenomena to the
following factors:
1.Feeling of importance among the girls as a result
of their participation in the research and the
attention they got .
2 warm informality in the small group and tension
free interpersonal and social relations as a result
of relative freedom from supervision and rules.
3 high group cohesion among the girls.

3.Interviewing programme

The knowledge about informal group process which was accidentally
acquired in the second phase made researcher design the third
phase. They wanted to know , what were the basic factors
responsible for human behavior at work.
They interview 20000 workers .at first , direct questions were asked
related to working conditions , supervision, living conditions etc.
secondly workers were free to talk about their favorite topics
related to their work environment. This study reveled that the
workers social relations inside the organization had an influence
on their attitudes and behaviors.



4. Bank wiring test room
This phase involved in depth observations of 14
men making terminal banks of telephones wiring
assembly., to determine informal group norms
and formal economic incentives on production.
It was found that the group evolved it own
production norms. Informal group and their influence
on production.
Rate busters :produced more than group norms
Rate chisellers : too slow in production
Squealers :those complaint to the supervisor
against there co-worker.


Contribution of human relation movement
1. A business organization is not only a techno
economic system but also a social system. It is
important to provide social satisfaction to the
workers.
2. There is no correlation b/w improved working
conditions and high production.
3. A workers production norms is set and enforced
by his group and not only by time and motion
study done by any industrial engineer. Those
who deviate from group norm are penalized by
their co-workers





4. Worker does not work for money only. Non
financial rewards also significantly affect the his
behavior and largely limit the effect of economic
incentive plan.
5. Employee centric, democratic and participative
style of management of supervisory leadership is
more effective than task -centric leadership.
6. The informal group and not the individual is
dominate unit of analysis in organization.


Limitations
1. Human relation writers saw only the human variable as critical
and ignored other variables.
2. They believe that organization can be turned in to big happy
family where it is always possible to find a solution which can be
satisfies everybody is not correct.
3. This approach provides an unrealistic picture about informal
groups by describing them as a major source of satisfaction for
industrial worker .(Robert dubin :industrial workers world : a
study of central life interests of industrial workers, social
problem).
4. This approach is production oriented and not employee oriented
as it claims.
5. This approach is based on a wrong assumption that satisfied
workers are more productive worker.
Social System Approach
Social system approach of management has extended the
implication of human relation approach.
Approach was introduced by vilfredo pareto, a sociologist.
His idea was later developed by Chester Barnard as concept of
social system approach. Written book the function
of executive
An organization is essentially a cultural system
composed of people who work in cooperation
a cooperative system can be developed by
understanding the behavior of people in groups .

Features of social system approach

1.organization is a social system , a system of
cultural relationships.
2. Relationship exist among the external as well as
internal environment of the organization.
3.Coopration among the group member is
necessary for the achievement of organizational
objectives.
4. For effective management , efforts should be
made for establishing harmony b/w the goals of
the organization and various groups therein .
Chester barnard
SOCIAL SYSTEM APPROACH Contd
Contributors
Pareto, Chester Barnard
Uses
Organizational decisions should not be based on
desires of one group alone but should reflect the
interests of all the parties.
Limitations
Broader than management & its practice
Overlooks many management concepts principles &
techniques that are important to practising managers.

DECISION THEORY APPROACH

Manager Decision maker
OrganizationDecision making unit.
Features
Management is decision making.
Members of Organisation -decision makers and
problem solvers.
Decision making -control point in management
Increasing efficiency -the quality of decision
MIS, process & techniques of decision making are the
subject matter of study.

DECISION THEORY APPROACH

Contributors
Simon, Forrester, etc.
Uses
Tools for making suitable decisions in
organizations.
Limitation
Does not take the total view of management
Decision making -one aspect of management

WHAT IS ETHICS?
Ethics is a set of rules that define right and
wrong conduct.
Ethical rules tell us when our behavior is
acceptable and when it is disapproved and
considered to be wrong.
Ethical rules are guides to moral behavior.
For many, religious beliefs and organizations
are a major source of ethical guidance and
moral meaning.

WHAT IS BUSINESS
ETHICS?
Business ethics is the application
of general ethical rules to
business behavior.

Global Ethical Issues
Wages and hours

Child labour

Discrimination

Legal and ethical business
practices

Product safety and quality

Environment

IMPORTANCE OF ETHICS FOR MANAGER
(i) Business is the part of the society . Social values must become the guiding
principles for doing business.
(ii) When an organization fails to behave in accordance with the societys
expectations , it may lose its image, market share and its very right to exists.
(iii) Manager is expected to serve as a trustee of various interest groups such as
customers , workers, shareholders and suppliers.
(iv) Consumers are no longer on the mercy of business firm . They have
powerful organized association to discipline the business firms . To avoid any
confrontation with the consumer associations, it is advisable for business
firm to follow ethical practices.
(v)Various law reflect the ethics of society . If a business is not ethical , it will
attract the intervention of government.
(vi) For every manager , job is the center of life. Job values must be in harmony
with social values if manager is to live happily
Tools for promoting ethical practices
In small organization it is simple to decide on ethical issue and follow them.
In large organizations which have multilevel and multilevel operations and involve
a huge and diverse work force , maintaining ethical practice is a complex task.
Managerial tools
1 Establishment of mission statement
2 laying down core values
3 formulating business policies and procedures
4 Formulating code of conduct for business
5 Establishing grievance handling mechanism
6 Ethical dilemma workshops.

1 Establishment of mission statement : statement clearly
states what business want to be. Mission statement clarifies as to where
all other policies of org. should be directed.
2 laying down core values: core values of the organization are
based on its vision and mission .examples of core values are :impartiality ,
technical excellence, respect , honesty etc
Disney theme park core values are :safety , show and efficency.





Corporate social responsibility
What an organization does to influence the society in which it exists ?
The assumption of social responsibilities by the business implies recognition
and understanding of aspirations of the society and determination to
contribute to its achievement------ Geroge A Stteiner

Social responsibility of business means obligation to act in a manner which will
serve the best interest of society

it is different from legal obligation --- it relates to voluntary efforts
E.g. TISCO set up Tata steel Rural Development Society
Finolex Hope foundation
Nokia contract with luxer for recycle pen
Aircel Save our Tiger
Charity principle : Doctrine of social responsibility requires more
fortunate individual to assist less fortunate members of society.
Tata memorial hospitals , Birla mandir
Stewardship principle : Doctrine that requires business and
wealthy individuals to view themselves as steward or caretakers holding their
property in trust for benefit of society.
Why social responsibility?
Business primary responsibility to maximize profit?
(i) Social entity : Business is creation of society and so it should respond to the
demands of society. i.e. resources,
(ii) Moral justification : Every business use capital , Physical and human resources of the
society for achieving its purpose . It also dependent on the society for the
acceptance of its output or goods or services. Business firms also use various social
infrastructure like roads , power and water supply etc.
(iii) Public image :
(iv) Avoidance of govt. interventions:
(v) consumer Awareness:
Social responsibility towards different interest groups
1. Responsibility towards owners or Investors: The owners and investors provide
funds to business . They expect high rate of return on investment .
(a) To ensure faire and regular return on investment of owner or shareholder.
(b) To ensure safety of investment
(c) To strengthen financial position of company so as to ensure capital of
company.
(d) To keep owner well informed about the progress and financial position of the
company
(e) To safe guard the asset of business .
(f) To protect the interests of all type of investors in business .
2. Responsibilities towards Employees : worker are source of labour. Their
cooperation must be achieved for realization of business objectives. The
manager/ management should fulfill following obligation towards the
workers:
(a) To pay reasonable wages and salaries to its employees so that they may
satisfy their needs and live a good life.
(b) To provide good working conditions to maintain the health of the workers.

(c)To provide service benefits such as housing and medical facilities, insurance etc
(d) To win cooperation of workers by creating better human relations .
(e) To recognize workers participation in management
(f) To provide adequate opportunities to workers to develop their skills through
training and education.
3 Responsibilities towards customers: Customers satisfaction is ultimate aim of all
business activities. This is more than offer a product at lower price. Adulteration
of goods, poor quality , lack of service and courtesy to customer , misleading
through dishonest advertisements etc.
(a)To produce goods which meet the needs of the consumers of different classes,
tastes and with different purchasing power.
(b) To provide goods to customers at reasonable prices .
(c) To handle customers grievances quickly and carefully.
(d)To ensure regular supply of goods and services.
(f) To ensure that advertisement and other statements issued by the business are
truthful.
(g) To follow fair trade practices.



4. Responsibilities toward suppliers: Management should deal with suppliers
judiciously. It should offer fair terms and conditions regarding price, quality , delivery of
goods and payments. In the absence of fair dealing , suppliers will not supply them the
goods on credits.
(a) To ensure regular payments to suppliers .
(b) To assist small scale suppliers by placing orders with them .
(c) To avoid exploitation of the suppliers.
(d) To help the suppliers in improving the quality of their products .
5. Responsibility towards government :
(a) To abide by the law of the nation and also the policies or guidelines issued by the
government.
(b) To pay taxes honestly and in time to government
(c) To avoid corrupting government employees.
(d) To encourage fair trade practices in country.
(f) To adopt fair dealing in foreign trade.
6. Responsibility towards community and society :
(a) To work for improvement of environment where the plant is located.
(b)To provide for welfare of local community through opening dispensaries- swarnjayanty H
(c)To take step against air , water and noise pollution.
(d)To ensure efficient use of national resources.

(e)To generate employment opportunity.
(f) To provide high quality product to society
(g)To improve the quality of life of worker s.
(h)To preserve and promote social and cultural values .
(i)To promote national integration

Corporate social responsiveness : a theory of social
responsibilities that focus on how company respond to issues , rather than
trying to determine their ultimate social responsibility
Two approaches 1. how to individual company respond to social issues
2 dealing with the forces that determine social issues to which business has to
responded
Ackerman was among the first to suggest that responsiveness not responsibility should be the goal
of corporate social endeavors.
Corporate response to social issue has a life cycle
corporate recognition of problem

Study of problem

Considering the way to deal with it

Implementation of solutions