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Amity School of Business

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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 theories-Classical and Neo classical theories.

Systems Approach to organization.

Modern Organization theory.

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WHAT IS MANAGEMENT?Management (from Old Frenchmnagement 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 otherpeople 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-managerialemployees.

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, theexecutive 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

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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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Mintzbergs10 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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INTERPERSONAL

Figurehead Performs ceremonial and symbolicduties such as greeting visitors, signing legal

documents

LeaderDirect and motivate subordinates, training,

counseling, and communicating with subordinates LiaisonMaintain information links both inside and

outside organization; use mail, phone calls,

meetings12

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INFORMATIONAL

MonitorSeek and receive information, scan periodicalsand reports, maintain personal contacts, Changes within

and outside the organization

DisseminatorForward 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

1930Humanistic Perspective

19901890Classical

1940

1950

2000

Systems Theory

2000

2010

The Technology-Driven Workplace

1990

2010The Learning Organization

1970Contingency Views

2000

1980Total Quality Management

2000

1940Management Science Perspective

1990

20101870

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Classical Perspective: 3000 B.C.

Rational, scientific approach to

managementmake organizations efficientoperating 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 andeliminating interruptions.

Provided wage incentives to workers forincreased output.

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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 DuPontand

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 andmotion 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(1868-

1924) 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 ManagementContributions 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

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2. Bureaucracy Organizations Max Weber 1864-1920 is the contributor.

Bureaucracy: implies an organization

characterized by rules, procedures, impersonalrelations and elaborate a rigid hierarchy ofauthority-responsibility relations.

Prior to Bureaucracy Organizations

European employees were loyal to a singleindividual rather than to the organization or itsmission

Resources used to realize individual desiresrather than organizational goals

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Elements of Bureaucracy Organizations

Hierarchy

Rules , Regulations &procedures

Impersonal Relations

Records and formal

selection

Administrative Class

Division of labor

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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 Organizationshierarchy

should enable effective Authority.

5. To control behavior , managersmust 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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FAYOLSCONTRIBUTION

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 suggestedcertain qualities of managerswinch 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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