1st Internal

7/27/2019 1st Internal

1/16

BCIPS, Dwarka, Sec 11, New Delhi 110075(GGSIPU, Dwarka, Sec 14, New Delhi 110075)

Page 1

MANAGEMENT PROCESS AND ORGANISATION BEHAVIOURIntroduction

Definitions of management:1.) As an art of getting things done:

Mary Parker Follet : Management is the art of getting things done throughothers.

Harold Koontz : The art of getting things done through and with people informally organized groups. It is the art of creating an environment in whichpeople can perform as individuals and yet cooperate towards attainment of groupgoals.

2.) Management as a process:

Management is the process of effec tive utilization of human and materialresources to achieve enterprise objectives.

George Terry: Management is a distinct process consisting of activities of planning, organizing, actuating and controlling, performed to determine andaccomplish stated ob jectives with the use of human beings and other resources.

3.) Management as a group of managers:

Management is a body or group of people which performs certain managerialfunctions for the accomplishment of predetermined goals.

These people are individually known as managers.

4.)Management as a discipline

Management is a multi disciplinary discipline/field of study. It has drawn heavilyfrom anthropology, psychology, sociology etc. and includes managementconcepts, principles, techniques and sk ills.

Nature of management

1) Goal oriented: The success of management is measured by the extent to whichthe organizational goals are achieved.

2) Focuses on effectiveness and efficiency


2/16


Page 2

3) Continuous process: consisting of functions such as planning ,organizing, staffing,directing and controlling.

4) Integrative force: the essence of Mgt. is integration of human and other resources toachieve the desired objectives.

5) Intangible force: it's presence is evidenced by the result of it s efforts -orderliness,informed employees, right spirit and adequate work output.

6) A science and an art.

7) Results through others: Managers must have the necessary ability and skills to getwork accomplished through the efforts of others.

8) System of authority: Management as a team of managers represent a system of authority, a hierarchy of command and control.

9) Multidisciplinary subject

10) Universal application: The principles and techniques of management are equallyapplicable in all kinds of organizations all around the world.

Management: a science and an art

Science: is a systematically organized body of knowledge based on proper findings and exact principles and is capable of verification.

Art: is the bringing about of a desired result through the application of skills.

If a science is learnt, art is practiced.

Management :

As a science:

i. Management has a systematised body of knowledge pertaining to its field.

ii. Scientific techniques are used to collect and analyse data about humanbehaviour.

iii. Several principles have been developed

which establish cause and effect relationship.

iv. Principles have a universal application.


3/16


Page 3

However, Mgt. is not a perfect or exact science as it deals with pe ople or humanfactor whose behaviour is very difficult to predict.

Moreover, management is a universal phenomenon, but its theories and principlesmay produce different results in different situations.

As an art:

A manager is an artist because he applies the knowledge gained from the studyof science of management for managing human and material resources.

Like an art, management is creative as managers create new situations neededfor further improvement.

It can be said that management is both a science and an art.

It s considered a science because it has an organized body of knowledge whichcontains universal truths.

It s also called an art because managing requires certain skills which are thepersonal possession of managers.

Managerial skills

A manager is one who directs the activities of other persons and undertakes theresponsibility for achievement of objectives through such efforts. Successfulmanagement seems to rest on three basic developable skills: technical, humanand conceptual. The relative importance of these three skills varies with the levelof managerial responsibility.

Technical Skill

The technical skill implies an understanding of and proficiency in a specific kind of activity, particularly one involving methods, processes, procedures, or techniques; it

involves specialised knowledge, analytical ability within that specialty, and proficiency inthe use of the tools and techniques of the specific discipline. Vocational and on-the-jobtraining programmes largely do a good job in developing this skill.


4/16


Page 4

Human Skill

This refers to the ability to work with, understand and motivate other people; the waythe individual perceives (and recognises the perceptions of) his superiors, equals, andsubordinates, and the way he behaves subsequently. The person with highly developed

human skills is aware of his own attitudes, assumptions, and beliefs about other individuals and groups; he is able to see the usefulness and limitations of thesefeelings. He is sufficiently sensitive to the needs and motivations of others in hisorganisation so that he can judge the possible reactions to, and outcomes of, thevarious courses of action he may undertake.

Conceptual Skill

This skill involves the ability to see the enterprise as a whole; it includes recognisinghow the various functions of the organisation depend on one another, and how changes

in any one part affect all the others; and it extends to visualising the relationship of theindividual business to the industry, the community, and the political, social andeconomic forces of the nation as a whole.

To acquire the Human Skill, the executive must develop his own personal pointof view toward human activity so that he will (a) recognise the feelings andsentiments which he brings to a situation, (b) have an attitude about his ownexperience which will enable him to re-evaluate and learn from them, (c) developability in understanding what others by their actions and words are trying tocommunicate to him and (d) develop ability in successfully communicating his

ideas and attitudes to others.Managerial Roles

Described by Mintzberg .

A role is a set of specific tasks a person performs because of the position he/sheholds.

Roles are directed inside as well as outside the organization.

There are 3 broad role categories:

1. Interpersonal2. Informational3. Decisional


5/16


Page 5

Interpersonal RolesRoles managers assume to coordinate and interact with employees and providedirection to the organization.

Figurehead role: Acting as a symbolic Head.

Leader role: train, counsel, mentor and encourage high employeeperformance.

Liaison role: link and coordinate people inside and outside theorganization to help achieve goals.

Informational Roles

Associated with the tasks needed to obtain and transmit information for management of the organization.

Monitor role: analyzes information from both the internal and externalenvironment.

Disseminator role: manager transmits information to influence attitudesand behavior of employees.

Spokesperson role: use of information to positively influence the waypeople in and out of the organization respond to it.

Decisional Roles

Associated with the methods managers use to plan strategy and utilize resourcesto achieve goals.

Entrepreneur role: deciding upon new projects or programs to initiateand invest.

Disturbance handler role: assume responsibility for handling anunexpected event or crisis.

Resource allocator role: assign resources between functions and

divisions, set budgets of lower managers. Negotiator role: seeks to negotiate solutions between other managers,

unions, customers, or shareholders.


6/16


Page 6

Evolution Of Management Thought

Classical Theory

Neo-classical theory (Human relations approach)

Behavioral Theory

Systems approach

Classical Theory

Also known as the traditional theory, it signifies the beginning of the systematicstudy of management.

It incorporates three viewpoints:

1) Scientific Management by F.W. Taylor

2) Administrative management by Henry Fayol

3) Ideal Bureaucracy by Max Weber

Features Of Classical Theory

1) It lays emphasis on the Formal organization .

2)The role of human element in organization is ignored.

3) Impact of external environment on the organizational working is ignored i.e.organizations are treated as closed systems .

4) It believes that the efficiency of the organization can be increased by making eachindividual efficient.

5) It is based on the centralization of authority.

6) It is assumed that there is no conflict between the individuals and the organization. Incase of any conflict, the interests of the organization should prevail.


7/16


Page 7

7)Money is considered to be the main motivator as people are supposed to beRational Economic persons .

Contributions/Merits of classical theory

It highlighted the universal nature of management.It provides a scientific basis for management practice.

It focuses on financial incentives as motivators.

It gives supreme importance to the organization and its objectives

Criticism of classical theory

Narrow view of organization/Assumption of closed systemNeglecting the human assets.

Economic rewards as main motivators/no focus on non-monetary rewards.

Lack of empirical verification.

Lack of universality of principles.

Excessive emphasis on rules and regulations (which limit individual initiative.)

Scientific Management approach (F.W. Taylor)

According to Taylor," Scientific Management is the substitution of exact scientificinvestigations and knowledge for the old individual judgment or opinion (rule of thumb) in all matters relating to the work done in the shop.

Principles of scientific management

Replacement of old rule of thumb method.

Scientific selection and training of workers.

Cooperation between labour and management.

Maximum output.


8/16


Page 8

Equal division of responsibility between the managers and the workers.

Techniques of scientific management

1)Scientific task setting- to determine a fair day s work.

2)Work study:

Method study- conducted to know the best method of doing a particular job.

Motion Study- to eliminate useless motions/movements.

Time study or work measurement- to determine the precise time required for each element of the work. It helps in fixing the standard time required to do aparticular job.

Fatigue study- helps in reducing fatigue (physical or mental) among the workers.

3)Planning the task and separating planning from execution.

4)Standardisation

5)Scientific selection and training

6)Differential piece-wage plan (to attract highly efficient workers)

7)Specialisation

Mental Revolution

The aim of scientific management is to change the attitudes of workers andmanagement towards each other. Taylor called it Mental Revolution .

It has three aspects :

1) All out efforts for increase in production.

2) Creation of the spirit of mutual trust and confidence.

3) Inculcating and developing the scientific attitude towards problems.

The Mental Revolution laid emphasis on the following:

Science, not rule of thumb


9/16


10/16


Page 10

Bureaucracy ( Max Weber)

Weber said that there are three types of legitimate authority:

1) Rational-legal authority- Obedience is owed to a legally established position or rank within the hierarchy of an organization.

2) Traditional Authority- Resulting due to belonging to a certain class or occupying a traditionally recognized position(eg. A royal family)

3) Charismatic authority- Based on the followers belief that a person has somespecial power or appeal.

Weber s theory of bureaucracy recognizes rational -legal authority as the mostimportant type in organizations. Under traditional authority, leaders are notchosen for their competence and charismatic theory is too emotional andirrational.

Characteristics/Features of bureaucracy:

A bureaucratic organization emphasizes on the following:

Division of work (leading to specialization)

Hierarchy of positions

Rules and regulations

Impersonal conduct (no room for emotions and sentiments)

Staffing (contractual relationship between the employee and the employer)

Technical Competence (basis of selection and promotions)

Official Records-Decisions and activities of the organization are formallyrecorded and preserved safely for future reference which is made possible by anextensive filing system.


11/16


12/16


Page 12

The essence of the human relations philosophy is to cultivate and develop anenvironment where the employees both as individuals and in groups are willingto contribute their best to the organizational goals.

Hawthorne studies:

Experiments were conducted by Elton Mayo and team in 1927 at the Hawthorneplant of Western electric company, Chicago.

The following set of studies were conducted:

1) Illumination experiment.

2) Relay assembly room experiment

3) Bank wiring observation room experiment.

4) Mass interview programme.

Contributions of human relations approach/Hawthorne studies:

Focus on Social system

Effect of Social environment

Group dynamics

Informal leader

Necessity of two way communication.

Importance of non- economic Reward.

Criticism/Limitations:

1) Limited focus on work

2) Over stretching of human relations

3) Over stress on socio-psychological factors

4) Negative view of conflict


13/16


Page 13

Behavioral Science Approach:

Its an extension and improvement over human relations approach.

In this, the knowledge drawn from Behavioral sciences namely, Psychology,

sociology and anthropology is applied to explain and predict human behavior (focuses on OB)

This approach emphasizes on increasing productivity through motivation andleadership.

This approach says that:

1) An organization is a socio-technical system.

2) Individuals act and react differently in various situation depending on thedifference in their attitudes, perceptions and value systems.

3) People have their own needs and goals which may differ from organizationalgoals. Attempts should be made to achieve fusion between the two.

4) There is a wide range of factors influencing inter-personal and group behaviour of people in organizations.

Broad features of Behavioral science approach:

1)It is an Interdisciplinary approach and integrates the knowledge drawn from differentdisciplines for studying human behavior.

2)It not only focuses on the cause and effect relationship but also prescribes ways andmeans to solve organizational problems.

3)It suggests reconciliation of the individual and organizational goals for better organizational climate and effectiveness.

4)It focuses attention on people from humanistic point of view.


14/16


Page 14

Systems Approach to management:

It s based on the generalization that an organization is a system and its componentsare interrelated and interdependent

System Defined A system consists of a number of interdependent parts functioning as a whole for some purpose.

A system is composed of related and dependent elements which when ininteraction form a unitary whole.

Key Concepts:

Integration is the key variable in systems analysis. It is defined as theinterrelatedness of the many parts within the whole.

The concept of Wholism is cen tral to the systems approach: No part of thesystem can be accurately analysed apart from the whole system and the wholesystem cannot be accurately perceived without understanding all its parts.

All analysis starts with the existence of the whole. The parts and their interrelationships should then evolve to best suit the purpose of the whole.

Possible modifications in each part should be weighed in relation to possibleeffects on every other part.

Each part has some role to perform so that the whole can accomplish itspurpose.

Every system has a boundary: These are more precisely defined in case of physical and biological systems than in case of social systems.

Law of synergy: The output of a system is always more than the combined outputof its parts.

A system can be either open or closed.

Closed system is one that is not influenced by, and does not interact with, itsenvironments. Such systems are mostly mechanical and have predeterminedmotions or activities that must be performed regardless of the environment.


15/16


Page 15

Open system is one that is influenced by, and is continually interacting with, itsenvironment.

Contributions of systems approach

It examines interrelationship and interdependency among organizational partsand concentrates on the working of various subsystems so as to ensure thesurvival and growth of the system.

It stresses the dynamic, multi-dimensional and and adaptive nature of organizations and acknowledges environmental influences which were ignoredby the classical theory.

It represents a balanced thinking and stresses on an integrated view rather than

analyzing problems in isolation.

Business as a system:

A business enterprise is an important system which is created to satisfy humanwants through the production and distribution of goods and services.

Like any system it gets the inputs from it s environment and supplies its outputto it.

Business system gets feedback or information from its environment or

suprasystem, according to which it modifies it s functioning. Features of business System:

1. Goal orientation

2. Creativity

3. Complexity

4. Interdependence of components

5. Diversity (in the range of inputs, methods and outputs)

6. Dynamism

7. Inbuilt control mechanism


16/16

Documents

1st Internal