NATURE AND SCOPE OF MANAGEMENT
MANAGEMENT AS A SCIENCE , AN ART.
LEVEL OF MANAGEMENT
PROCESS/FUNCTIONS OF MANAGEMENT
F.W.TAYLOR'S SCIENTIFIC MANAGEMENT.
FAYOL'S THEORY OF MANAGEMENT
Influencing policy (training slides from Fast Track Impact)
Management concepts (unit -1)
1. NATURE AND SCOPE OF
MANAGEMENT
Dr. R. THANGASUNDARI, MBA., M.Phil., Ph.D.,
Research Adviser and Assistant professor
PG And Research Department Of Management
Studies,
Bon Secours College For Women, Thanjavur-06.
South India, India.
2. DEFINITION OF MANAGEMENT
Various definitions of management:
“Management is the art of getting things done through others.”
“Management is the art of getting things done through and with
people in formally organized groups.”
“Management is the art of directing and inspiring people.”
“Management is the art of getting things done through and with
people in formally organized groups.”
3. NATURE AND SCOPE OF MANAGEMENT
Universality:
It is a universal phenomenon in the sense that it is common and
essential in all enterprises. The principles of management can be applied
in all managed situations regardless of size, nature and locations of
organization. Universality also implies that managerial skills are
transferable and managers can be trained and developed.
Purposeful:
It is always aimed at achieving organization goals and purposes.
The success of management is measured by the extent to which desired
objectives are attained. The tasks of management are directed towards
effectiveness and efficiency.
Coordinating Force:
It coordinates the efforts of organizational members through elderly
arrangement of inter-related activities to avoid duplication of efforts.
4. Coordinating Force
It coordinates the efforts of organizational members through elderly
arrangement of inter-related activities to avoid duplication of efforts.
Intangible
It is intangible. Its presence can be felt by outcomes of its efforts in
the form of orderly, adequate, work output, employee satisfactions etc.
Continuous Process
It is an ongoing process. The cycle of management continues as long
as there is existence of organisation.
Composite Process
Management is a composite process made up of individual
components. All the functions are performed by several components in
orderly fashion.
6. OBJECTIVES OF MANAGEMENT:
Proper Utilization of Resources
The main objective of management is to use various resources
of the enterprise in a most economic way. The proper use of men,
materials, machines and money will help a business to earn sufficient
profits to satisfy various interests. The proprietors will want more
returns on their investments while employees, customers and public
will expect a fair deal from the management. All these interests will be
satisfied only when physical resources of the business are properly
utilized.
Improving Performance
Management should aim at improving the performance of each
and every factor of production. The environment should be so
congenial that workers are able to give their maximum to the
enterprise. The fixing of objectives of various factors of production will
help them in improving their performance.
7. Mobilizing Best Talent
The management should try to employ persons in various fields
so that better results are possible. The employment of specialists in
various fields will be increasing the efficiency of various factors of
production. There should be a proper environment which should
encourage good persons to join the enterprise. The better pay scales,
proper amenities, future growth potentialities will attract more people
in joining a concern
Planning for Future
Another important objective of management is to prepare
plans. No management should feel satisfied with today’s work if it has
not thought of tomorrow. Future plans should take into consideration
what is to be done next. Future performance will depend upon present
planning. So, planning for future is essential to help the concern.
8. PROCESS OF MANAGEMENT OR
FUNCTIONS OF MANAGEMENT
Planning
It is the basic function of management. It deals with chalking out a
future course of action & deciding in advance the most appropriate course
of actions for achievement of pre-determined goals.
Organizing
It is the process of bringing together physical, financial and human
resources and developing productive relationship amongst them for
achievement of organizational goals.
Staffing
The main purpose o staffing is to put right man on right job i.e.
square pegs in square holes and round pegs in round holes. Managerial
function of staffing involves manning the organization structure through
proper and effective selection, appraisal & development of personnel to
fill the roles designed un the structure”.
9. Directing
It is that part of managerial function which actuates the
organizational methods to work efficiently for achievement of
organizational purposes. It is considered life-spark of the enterprise
which sets it in motion the action of people because planning, organizing
and staffing are the mere preparations for doing the work.
Coordinating
Co-ordination is the unification, integration, synchronization of
the efforts of group members so as to provide unity of action in the
pursuit of common goals. It is a hidden force which binds all the other
functions of management.
Controlling
It implies measurement of accomplishment against the standards
and correction of deviation if any to ensure achievement of
organizational goals. The purpose of controlling is to ensure that
everything occurs in conformities with the standards.
10. Management as an Art, Science & Profession
Management as art
Management as Science
Management as a profession
11. Management as art
Prior theoretical knowledge
Every art form and artist uses predefined expertise and data to build upon
their ideas. Theories in public speaking, acting school basics for actors,
knowledge of tones in music, etc. are all examples of theoretical knowledge
which is used in specific art forms. Similarly, in Management, professionals are
given workflows and blueprints to analyze, test, and execute business ideas.
Personalized approach
Every artist has its own view of building forms of art. For example, every
musician has its own style; every painter prefers a specific niche, etc. Similarly,
in Management, every professional has its own way of approaching problems
and suggesting solutions.
Involves a lot of creativity
Every art form is heavily dependent on creativity. Creative thinking
produces beautiful art and is unique to the best artists. Similarly, in
Management, innovative solutions have given birth to amazing companies and
benchmark management principles that are used worldwide.
12. Management as Science
Systematic structure
Subjects of science like Chemistry and physics have defined
systematic principles and divisions. Each subsection has another set of
principles that help you experiment with new things in a particular domain.
Similarly, Management has a systematic structure of divisions and
principles.
Universal validity
The concepts and basic principles of Management have universal
validity. For example, the principles used in finance management are similar
in every company, and the rules are valid universally. These sets of
principles do not change with situations and applications.
Experiments
Concepts and principles of science are predefined and are always
experimented with trial and error to justify them and bring new inventions.
Similarly, concepts in Management are often tested to improve business
practices.
13. Management as a profession
Formal Education and systems
Like any profession, Management contains formal levels of education
and building systems to reach desired positions. To join the Management of
large corporations, students join and excel in degrees like BBA, MBA, etc.
Restricted entry
Entry to any management role is possible only for candidates with
certain set entry criteria. These criteria include educational qualifications,
experience, efficiency, knowledge of specific software, etc.
Code of conduct and associations
Management, like any other profession, contains a code of conduct and
ethics that every manager has to abide by. The presence of various
management associations is there, which regulates and certifies managers
for specific skills.
15. F.W. TAYLOR’S SCIENTIFIC MANAGEMENT
Science, not the Rule of Thumb
This rule focuses on increasing the efficiency of an organisation
through scientific analysis of work and not with the ‘Rule of Thumb’
method. Taylor believed that even a small activity like loading paper sheets
into box cars can be planned scientifically. This will save time and also
human energy. This decision should be based on scientific analysis and
cause and effect relationships rather than ‘Rule of Thumb’ where the
decision is taken according to the manager’s personal judgments.
Harmony, Not Discord
Taylor indicated and believed that the relationship between the
workers and management should be cordial and complete harmony.
Difference between the two will never be beneficial to either side.
Management and workers should acknowledge and understand each other’s
importance. Taylor also suggested the mental revolution for both
management and workers to achieve total harmony.
16. Mental Revolution
This technique involves a shift of attitude of management and workers
towards each other. Both should understand the value of each other and work
with full participation and cooperation. The aim of both should be to improve and
boost the profits of the organization. Mental Revolution demands a complete
change in the outlook of both the workers and management, both should have a
sense of togetherness.
Cooperation, not Individualism
It is similar to ‘Harmony, not discord’ and believes in mutual
collaboration between workers and the management. Managers and workers
should have mutual cooperation & confidence and a sense of goodwill. The main
purpose is to substitute internal competition with cooperation.
Development of Every Person to his Greatest Efficiency
The effectiveness of a company also relies on the abilities and skills of its
employees. Thus, implementing training, learning best practices and technology,
is the scientific approach to brush up the employee skill. To assure that the
training is given to the right employee, the right steps should be taken at the time
of selection and recruiting candidates based on a scientific selection.
17. FAYOL’S THEORY OF MANAGEMENT
Division of Work.
Specialization allows the individual to build up experience, and to
continuously improve his skills. Thereby he can be more productive.
Authority.
The right to issue commands, along with which must go the
balanced responsibility for its function.
Discipline.
Employees must obey, but this is two-sided: employees will only
obey orders if management play their part by providing good leadership.
Unity of Command.
Each worker should have only one boss with no other conflicting
lines of command.
18. Unity of Direction.
People engaged in the same kind of activities must have the same
objectives in a single plan. This is essential to ensure unity and coordination
in the enterprise. Unity of command does not exist without unity of
direction but does not necessarily flows from it.
Subordination of individual interest (to the general interest).
Management must see that the goals of the firms are always
paramount.
Remuneration
Payment is an important motivator although by analyzing a number of
possibilities, Fayol points out that there is no such thing as a perfect system.
Centralization (or Decentralization). This is a matter of degree depending
on the condition of the business and the quality of its personnel.
19. Scalar chain (Line of Authority).
A hierarchy is necessary for unity of direction. But lateral
communication is also fundamental, as long as superiors know that such
communication is taking place. Scalar chain refers to the number of levels
in the hierarchy from the ultimate authority to the lowest level in the
organization. It should not be over-stretched and consist of too-many levels.
Order.
Both material order and social order are necessary. The former
minimizes lost time and useless handling of materials. The latter is achieved
through organization and selection.
Equity.
In running a business a ‘combination of kindliness and justice’ is needed.
Treating employees well is important to achieve equity.
20. Stability of Tenure of Personnel.
Employees work better if job security and career progress are
assured to them. An insecure tenure and a high rate of employee
turnover will affect the organization adversely.
Initiative.
Allowing all personnel to show their initiative in some way is
a source of strength for the organization. Even though it may well
involve a sacrifice of ‘personal vanity’ on the part of many
managers.
Team Spirit (Esprit de Corps).
Management must foster the morale of its employees. He
further suggests that: “real talent is needed to coordinate effort,
encourage keenness, use each person’s abilities, and reward each
one’s merit without arousing possible jealousies and disturbing
harmonious relations.”