CHAPTER 1:

INTRODUCTION TO MANAGEMENT

Jagran Lakecity Business School

LEARNING OUTCOMES
After reading this chapter, we will be able to:

1. Define Managers and Management.

2. Describe the difference between managers and operative
employees.
3. Describe the primary functions of management.
4. Classify the three levels of managers and identify the
primary responsibility of each group.

Jagran
Jagran Lakecity
Lakecity Business
Business School
School
L E A R N I N G O U T C O M E S (cont’d)
After reading this chapter, we will be able to:

6. Summarize the essential roles performed by managers.

7. Describe the four general skills necessary for becoming a
successful manager.
8. Describe the value of studying management.
9. Management History.

Jagran
Jagran Lakecity
Lakecity Business
Business School
School
Why are Managers Important?

• Organizations need their managerial skills and abilities more

than ever in these uncertain, complex, and chaotic times.
• Managerial skills and abilities are critical in getting things
done.
• The quality of the employee/supervisor relationship is the
most important variable in productivity and loyalty.

Jagran
Jagran Lakecity
Lakecity Business
Business School
School
Who Are Managers?

• Manager
– Someone who coordinates
and oversees the work of
other people so that
organizational goals can be
accomplished.
– Ex. Insurance claim
supervisior.

Jagran
Jagran Lakecity
Lakecity Business
Business School
School
 Classifying Managers

• First-line Managers - Individuals who manage the work of non-managerial

employees.
• Middle Managers - Individuals who manage the work of first-line
managers.
• Top Managers - Individuals who are responsible for making organization-
wide decisions and establishing plans and goals that affect the entire
organization.

Jagran
Jagran Lakecity
Lakecity Business
Business School
School
 Levels of Management

Jagran
Jagran Lakecity
Lakecity Business
Business School
School
Where Do Managers Work?

• Organization - A deliberate arrangement of people assembled to

accomplish some specific purpose (that individuals independently could not
accomplish alone).
• Common Characteristics of Organizations
– Have a distinct purpose (goal)
– Are composed of people
– Have a deliberate structure

Jagran
Jagran Lakecity
Lakecity Business
Business School
School
What Do Managers Do?

Management involves coordinating and overseeing the work activities of

others so that their activities are completed efficiently and effectively.

Jagran
Jagran Lakecity
Lakecity Business
Business School
School
Effectiveness and Efficiency

• Efficiency • Effectiveness
– “Doing things right” – “Doing the right things”
– Getting the most output for – Attaining organizational goals
the least inputs

Jagran
Jagran Lakecity
Lakecity Business
Business School
School
Management Process Activities

Jagran
Jagran Lakecity
Lakecity Business
Business School
School
Management Functions

• Planning - Defining goals, establishing strategies to achieve

goals, and developing plans to integrate and coordinate
activities.
• Organizing - Arranging and structuring work to accomplish
organizational goals.

Jagran
Jagran Lakecity
Lakecity Business
Business School
School
 • Leading
– Includes motivating employees, directing the activities of
others, selecting the most effective communication
channel, and resolving conflicts
• Controlling
– The process of monitoring performance, comparing it
with goals, and correcting any significant deviations

Jagran
Jagran Lakecity
Lakecity Business
Business School
School
Management Roles

• Roles are specific actions or behaviors expected of a manager.

• Mintzberg identified 10 roles grouped around interpersonal
relationships, the transfer of information, and decision making.
• Interpersonal
– Figurehead • Decisional
– Leader – Entrepreneur
– Liaison – Disturbance hander
• Informational – Resource allocator
– Monitor – Negotiator
– Disseminator
– Spokesperson
Jagran
Jagran Lakecity
Lakecity Business
Business School
School
Management Roles

• Interpersonal roles
– Figurehead, leader, liaison
• Informational roles
– Monitor, disseminator, spokesperson
• Decisional roles
-Entrepreneur, disturbance handler, resource allocator, negotiator
• Technical skills
– Knowledge and proficiency in a specific field
• Human skills
– The ability to work well with other people
• Conceptual skills
– The ability to think and conceptualize about abstract and complex situations
concerning the organization

Jagran
Jagran Lakecity
Lakecity Business
Business School
School
Important Managerial Skills

Jagran
Jagran Lakecity
Lakecity Business
Business School
School
Rewards and Challenges of Being a Manager

Jagran
Jagran Lakecity
Lakecity Business
Business School
School
How Does Management Relate To Other
Disciplines?

Sociology

Political Science Psychology

Management
Economics Philosophy

Anthropology

Jagran
Jagran Lakecity
Lakecity Business
Business School
School
Jagran
Jagran Lakecity
Lakecity Business
Business School
School
Scientific Management

• Frederick W. Taylor
– The Principles of Scientific Management (1911)
• Advocated the use of the scientific method to define the “one
best way” for a job to be done
• “Scientific Management consists in knowing what you (i.e.
management) want men to do exactly; and seeing to it that
they do it in the best and the cheapest manner.”
– Believed that increased efficiency could be achieved by selecting
the right people for the job and training them to do it precisely in
the one best way.
– To motivate workers, he favored incentive wage plans.
– Separated managerial work from operative work.

Jagran
Jagran Lakecity
Lakecity Business
Business School
School
Taylor’s Four Principles of Management

• Replacing Rule of thumb: Develop a science for each element of an

individual’s work, which replaces the old rule-of-thumb method.
• Development of workers: Scientifically select and then train, teach, and
develop the worker. (Previously, workers chose their own work and
trained themselves as best they could.)
• Cooperation: Heartily cooperate with the workers so as to ensure that all
work is done in accordance with the principles of the science that has
been developed.
• Harmony in Group Action: Divide work and responsibility almost equally
between management and workers. Management takes over all work for
which it is better fitted than the workers. (Previously, almost all the work
and the greater part of the responsibility were thrown upon the
workers).
Jagran
Jagran Lakecity
Lakecity Business
Business School
School
Contd.

(1) Determination of fair day’s task for each worker through scientific
methods (including the best way of doing a job). For determining a fair
day’s task for each worker, Taylor recommended the use of scientific
methods involving the conduct of the following three types of work
studies, viz.,
(a) Time study
(b) Motion study
(c) Fatigue study
(2) Scientific selection and training of workers:
The workers, under scientific management, must be properly selected by
adhering to a carefully- designed selection procedure.

Jagran
Jagran Lakecity
Lakecity Business
Business School
School
Contd.

(3) Standardisation of raw materials, tools and working conditions:

(i) Raw materials, tools, machines and other facilities of work must be of a
reasonably good quality; so that the quality of production is reasonable.
(ii) Another variety of standardization which Taylor refers to is uniformity in
providing work-facilities and work conditions to all workers, doing a similar
type of job

(4) Functional Foremanship:

The following chart illustrates the functioning of the scheme of the
functional foremanship:

Jagran
Jagran Lakecity
Lakecity Business
Business School
School
Contd.

Jagran
Jagran Lakecity
Lakecity Business
Business School
School
 Administrative Management

• General administrative theorists

– Writers who developed general theories of what managers do and
what constitutes good management practice
– Henri Fayol (France)
• Fourteen Principles of Management: Fundamental or universal
principles of management practice.
• He divided studying managements into three parts: managerial
qualities, elements of management and the general principles of
management.

Jagran
Jagran Lakecity
Lakecity Business
Business School
School
 Fayol’s Fourteen Principles of Management

• Division of work • Centralization

• Authority and responsibility • Scalar chain
• Discipline • Order
• Unity of command
• Equity
• Unity of direction
• Stability of tenure of
• Subordination of the personnel
individual interest to general
interest • Initiative
• Remuneration • Esprit de corps

Jagran
Jagran Lakecity
Lakecity Business
Business School
School
Weber’s Ideal Bureaucracy

Division of labour:
In a bureaucratic organisation, jobs are broken into smaller units
where each person carries out a specialised task. Work is divided
on the basis of specialisation. Each unit knows the areas in which it
operates, its area of competence and the area in which it should
not step.
Authority Hierarchy: Business follows
a hierarchy of authority where orders flow
from top to bottom and obedience flows
from bottom to top. Hierarchy facilitates
communication, coordination and
control within the organisation.

Jagran
Jagran Lakecity
Lakecity Business
Business School
School
Contd.

Appointments on the basis of merit:

All appointments or selections are based purely on merit on the job
Formal rules and procedures:
Rules and regulations are in writing to ensure uniformity, coordination and
consistency in behaviour. These rules are stable and provide continuity
and predictability to organisational behaviour. Every person knows the
outcome of his behaviour in specific situations.
Impersonal:
All individuals are treated at par irrespective of their position and status.
This ensures impartiality in managing people and events.
Official records:
All decisions and activities of the organisation are formally maintained in
official records and preserved for future reference.

Jagran
Jagran Lakecity
Lakecity Business
Business School
School
Hawthorne Studies

• A series of studies done during the 1920s and 1930s that

provided new insights into group norms and behaviors
– Hawthorne effect
• Social norms or standards of the group are the key
determinants of individual work behavior.
• Changed the prevalent view of the time that people were no
different than machines.

Jagran
Jagran Lakecity
Lakecity Business
Business School
School
Contd.

• 1. Illumination Experiments 2. Relay Assembly Test Room Experiments 3.

Mass Interviewing Programme 4. Bank Wiring Observation Room
Experiment.
• 1. Experiments to determine the effects of changes in illumination on
productivity, illumination experiments, 1924-27.
• 2. Experiments to determine the effects of changes in hours and other
working conditions on productivity, relay assembly test room experiments,
1927-28;
• 3. Conducting plant-wide interviews to determine worker attitudes and
sentiments, mass interviewing programme, 1928-30; and
• 4. Determination and analysis of social organisation at work, bank wiring
observation room experiments, 1931-32.

Jagran
Jagran Lakecity
Lakecity Business
Business School
School
 The following were the main conclusions drawn by Prof. Mayo on the
basis of Hawthorne studies:
• 1. Social Unit
• 2. Group Influence & Behaviour
• 3. Motivation
• 4. Supervision
• 5. Working conditions

Jagran
Jagran Lakecity
Lakecity Business
Business School
School
The Systems Approach

• Defines a system as a set of interrelated and interdependent

parts arranged in a manner that produces a unified whole
– Closed system : a system that is not influenced by and
does not interact with its environment
– Open system: a system that dynamically interacts with its
environment
– Stakeholders: any group that is affected by organizational
decisions and policies

Jagran
Jagran Lakecity
Lakecity Business
Business School
School
Contd.

• Barnard suggested social systems approach to management. His main

contributions to management thought can be described as follows:
• 1. Theory of Formal Organisation:
Barnard gave a theory of formal organisation. He defined it as "a system of
consciously co-ordinated activities of forces of two or more persons.“
According to him, organisation consisted of human beings whose activities
were co-ordinated and therefore becomes a system .
Three elements : (i) the willingness of persons to contribute efforts to the
co-operative system (ii) there should be an objective of co-operation and
(iii) proper communication system is necessary.

Jagran
Jagran Lakecity
Lakecity Business
Business School
School
Contd.

2. Organisational Equilibrium:
The persons working in the organisation have two roles—a personal role
and an organisational role. There should be a balance between what
employees get out of the organisation (money, status, recognition, etc.)
and what they contribute in form of time, knowledge, discomfort,
production, etc.
3. Acceptance Theory of Authority:
The decision as to whether an order has authority or not lies with the
person to whom it is addressed, and does not reside in persons of
authority or those who issue these orders.

Jagran
Jagran Lakecity
Lakecity Business
Business School
School
Contd.

4. Functions of the Executive:

Barnard postulated three types of functions for the executives in forma!
organisational set up. These functions are:
(a) Maintaining proper communication in the organisation
(b) Obtaining essential services from individuals for achieving
organisational goals
(c) Formulating purposes and objectives at all levels.
5. Informal Organisation:
Barnard was of the opinion that both formal and informal organisations
co-exist in every enterprise. Informal organisation refers to those social
interactions which do not have consciously co-ordinated joint purpose.

Jagran
Jagran Lakecity
Lakecity Business
Business School
School
Management as an Art or Science?

Management as a Science:
Science can be defined as a systematic and organised body of knowledge
based on logically observed findings, facts and events. Science comprises
of exact principles which can be verified and it can establish cause and
effect relations.
Main characteristics/features of science are:
1. Systematic body of knowledge
2. Scientific principles are derived on the basis of logical and scientific
observations
3. Principles are based on repeated experiments
4. Universal Validity
5. Replication is possible

Jagran
Jagran Lakecity
Lakecity Business
Business School
School
Management as an Art or Science

Management as an Art:
Art can be defined as systematic body of knowledge which requires skill,
creativity and practice to get perfection.
The main features of art are:
1. Systematic body of knowledge/Existence of theoretical knowledge
2. Personalised application
3. Based on Practice and creativity
Management: Both Science and Art:
Management is both science as well as art. Like science it has systematic
and well- organised body of knowledge and like art it requires personal
skill, creativity and practice to apply such knowledge in the best possible
way. Science and art are not in contrast to each other; both exist together
in every function of management.

Jagran
Jagran Lakecity
Lakecity Business
Business School
School
 Questions & Answers

Jagran
Jagran Lakecity
Lakecity Business
Business School
School