Perspective Management_1 (2022)

Management
Def: management is process of designing and maintaining an environment in which individuals work together in group efficiently accomplishing selected aims and objectives.

Managers carry out various managerial functions
Planning,
Organizing,
Staffing,
Leading and
Controlling

Management- Introduction
Management applies to any kind of organization.
Management is all about maximizing results with the utilization of minimum resources.
Globalization and IT

Managerial functions at different organizational levels
Top management
Middle management
First line supervisors

Goals of Manager and Organization
The job of a business managers is not only to make profits but also for many businesses , an important goal is long – term increase in the value of their common stock.
“we lost sight of profitability as the goal and substituted shareholder value measured by stock prices”.
-Micheal Porter

Characteristics of excellent and most admired companies
“In search of excellence” by Thomas peters and Robert waterman
The authors Identified eight characteristics of excellent enterprises Specifically, these firms
Were oriented towards action
Learned about the needs of the customers
Promoted managerial autonomy and entrepreneurship
Were driven by a company philosophy often based on the values of their leaders.
Achieved productivity by paying close attention to the needs of the people.
Focused on the business they knew best.
Had a simple organization structure with a lean staff.
Were centralized as well as decentralized, depending on the appropriateness.

Management- Science or an Art
Management like any other practice medicine, engineering, accountancy, music composition is an art( “know-how”).
Managers work better by using organized knowledge about management.
Organized knowledge underlying the practice may be referred to as a “Science”.
Science & Art are not mutually exclusive, they are complementary
As science improves , so should art as has happened in physical and biological science.

Evolution of Management Thought
Frederick Taylor- Father of scientific management, his primary concern was to raise productivity through greater efficiency in production and Increased pay for workers by applying Scientific Methods. He emphasized on using Science, creating group harmony, achieving maximum output, and developing workers.
Taylor’s famous book “Principles of Scientific Management” had underlined scientific approach to the management, they are as follows:
Replacing rules of thumb with Science (Organized Knowledge)
Obtaining harmony, rather than discord, in group action.
Achieving cooperation of human beings, rather than chaotic Individualism.
Working for maximum output, rather than restricted output.
Developing all workers to the fullest extent possible for their own and their company’s highest prosperity.

Henry Fayol- Father of Modern Management Theory. He divided Industrial activities into six groups viz. Technical, Commercial, Financial, Security, Accounting and managerial.
He formulated fourteen principles of management such as authority and responsibility, Unity of Command, Scalar Chain and Espirit de Corps.

Elton Mayo and F.J. Roethlisberger: The Hawthorne Studies, In Hawthorne plant of western Electric company a study on the influence of social attitudes and relationships on work groups on performance.

Max Weber: Theory of bureaucracy.
Theory of Bureaucracy

Max Weber was a historian that wrote about the emergence of bureaucracy from more traditional organizational forms (like feudalism) and it's rising pre-eminance in modern society.

Bureaucracy is a particular type of administrative structure developed through rational-legal authority. Bureaucratic structures evolved from traditional structures with the following changes:

1. Jurisdictional areas are clearly specified, activities are distributed as official duties (unlike traditional form where duties delegated by leader and changed at any time).

2. Organization follows hierarchial principle -- subordinates follow orders or superiors, but have right of appeal (in contrast to more diffuse structure in traditional authority).
3. Intential, abstract rules govern decisions and actions. Rules are stable, exhaustive, and can be learned. Decisions are recorded in permanent files (in traditional forms few explicit rules or written records).

4. Means of production or administration belong to office. Personal property separated from office property.

5. Officials are selected on basis of technical qualifications, appointed not elected, and compensated by salary.

6. Employment by the organization is a career. The official is a full-time employee and looks forward protected from arbitrary to a life-long career. After a trial period they get tenure of position and are protected through arbitrary dismissal.

Approaches to Management

The Managerial Roles Approach
Interpersonal Roles:
1. The Figurehead Role (performing ceremonial and social duties as the organization’s representative.)
2. The leader role
3. The liaison Role.
Informational Roles:
1. The recipient Role
2. The disseminator Role
3. the spokes person role
Decision Roles:
1. The Entrepreneur Role
2. the Disturbance-handler role
3. The resource allocator Role
4. The negotiator Role

Contingency Theory
Contingency theory is an outgrowth of systems design. Jay Galbraith (1973) states that in contingency theory
There is no one best way to organize.
Any way of organizing is not equally effective.

Contingency theory is guided by the general orienting hypothesis that organizations whose internal features best match the demands of their environments will achieve the best adaptation" (Scott p. 89). The termed was coined by Lawrence and Lorsch in 1967 who argued that the amount of uncertainty and rate of change in an environment impacts the development of internal features in organizations.

Decision theory is a body of knowledge and related analytical techniques of different degrees of formality designed to help a decision maker choose among a set of alternatives in light of their possible consequences. Decision theory can apply to conditions of certainty, risk, or uncertainty. means that each alternative leads to one and only one consequence, and a choice among alternatives is equivalent to a choice among consequences.

Input and Claimants:
Inputs from external environment may include people, capital, Managerial skills, as well technical knowledge and skills.

The Managerial Transformation process:
The transformation process can be viewed From different perspectives, thus one can focus on such diverse enterprise functions as finance, production, personnel, and marketing. The most comprehensive and useful approach for discussing the job of managers is to use the managerial functions of planning, organizing, staffing, leading and controlling as a framework for organizing managerial knowledge.

The Communication system:
Communication is essential in the selection, appraisal, and training of managers to fill the roles in this structure. Effective leadership and creation of an environment conductive of motivation depend on communication.

External Variables: Managers may have little or no power to change the external Environment, they have no alternative but to respond to it.
Output: The organization must indeed provide many “satisfaction” if it hope to retain and elicit contribution from its members. It must contribute to the satisfaction of not only the basic material needs like need for money for food and shelter or to have job security but also of the needs for affiliation, acceptance, esteem, and self actualization.
Reengineering the system: In the systems model of the management process, some of the outputs again becomes input. Eg: satisfaction and new knowledge or skills of employees becomes important human inputs, profits can be utilized in cash and capital goods such as machinery, equipments, and building.

7-S framework of McKinsey
The 7-S framework of McKinsey is a Value Based Management (VBM) model that describes how one can holistically and effectively organize a company. Together these factors determine the way in which a corporation operates.

Shared Value: The interconnecting center of McKinsey's model is: Shared Values. What does the organization stands for and what it believes in. Central beliefs and attitudes.

Strategy: Plans for the allocation of a firms scarce resources, over time, to reach identified goals. Environment, competition, customers.

Structure: The way the organization's units relate to each other: centralized, functional divisions (top-down); decentralized (the trend in larger organizations); matrix, network, holding, etc.

System: The procedures, processes and routines that characterize how important work is to be done: financial systems; hiring, promotion and performance appraisal systems; information systems.

Staff: Numbers and types of personnel within the organization.

Style: Cultural style of the organization and how key managers behave in achieving the organization’s goals. Management Styles.

Skill: Distinctive capabilities of personnel or of the organization as a whole. Core Competences.

The management process or operation approach:
This approach recognizes that there is a central core of knowledge about managing that is pertinent only to the field of management. Such as line and staff, departmentation, managerial appraisal, and various managerial control techniques involve concepts and theories. In addition this theory absorbs knowledge from other fields , including system theory, quality and reengineering concepts, decision theory theories of motivation and leadership, Individual and group behavior, social systems and cooperation and communications as well as applications of mathematical analyses and concepts.

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