ManagementEngineering Unit 1 into of management.ppt

management engineering study material

1. Unit 1-Introduction of Management

2. Concept of Management - Divisions
•Management as process
•Management as group of people
•Management as a discipline

3. Management as Process
•Management scholars like Kimball, Koontz, O'Donnell, Newmann,
Summer, Stanley Vance, Theo Haimann, F.C. Hooper and E.F.T Breach
all call it a process. It is evident from the following definitions also:
•According the Kimball, management may be broadly defined as the
art of applying the economic principles that underlie the control of
men and materials in the enterprise under consideration
•According to Koontz, "Management is the art of getting things done
through and with people in formally organized groups”
•According to Theo Haimann, "Management is the function of getting
things done through people and directing the efforts of individuals
towards a common objective"

4. •According to Sisks, "Management is the process of working with one
another to effectively achieve organizational objectives by efficiently
using limited resources in changing environment”
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•A process can be defined as a systematic method of handling
activities
•But the management process is often considered a complex one – An
identifiable flow of information through interrelated stages of
analyses directed towards the achievement of an objective or set of
objectives
•The activities through which these objectives can be achieved are
classified into operational and managerial

5. •This group of definitions puts emphasis on the various functions
performed by managers in organizations though there is no
uniformity in these functions in various definitions
•These definitions are more relevant to understand the exact nature
and scope of management
•Management is a process involving planning, organizing, directing
and controlling human efforts to achieve stated objectives in an
organization

6. Management as Group of people
•According to this approach human factor plays an important role in
accomplishing business objectives. Management is concerned with
those who have been managing the affairs of the business. Managers
are assigned duties and are also granted requisite authority to
perform their duties efficiently and thus, management is effective
direction, coordination and control of individual and group efforts to
accomplish business objectives.
•This approach is advocated by management authorities like Taylor,
Wilson and others.
•As per F.W. Taylor's approach, "Management is the art of knowing
exactly what you want your men to do and then seeing that they do it
in the best and cheapest way."

7. •In this group of definitions, management is defined as a process of
coordinated efforts of people in organizational settings
•Management is the direction of people and not of things
•Lawrence Appley defines management as the accomplishment of
results through the efforts of other people
•Koontz has defined management as the art of getting things done
through and with people in formally organized groups
•These definition offer a better definition of management but the
flaw arises in that they do not specify functions or activities involved
in the process of getting things done by or with the cooperation of
other people

8. Management as a Discipline
•Some times the term 'Management' is used to connote neither the
activity nor the personnel who exercise it, but as a substantive
subject, a body of knowledge and as a subject of study. Management
is being taught in different college and universities as a distinct
subject.
•Thus, management, as such is a process, an activity, a discipline and
as effort to coordination, control and direct individual and group
efforts towards desired goal of any business.

9. Importance of Management -
•Effective utilization of resources
•Management aims to utilize resources effectively due to the scarcity of
resources premise
•Since demand of society has to be met, the contribution of scarce resources
should be maximum for its general interest
•Management not only decides in which way a particular resource be used,
but also takes action to utilize the particular resource in the best way

10. •Development of Resources
•Management develops various resources, both human and non-human
•Lawrence Appley has emphasized that management is the development of
people
•Most resource development is carried out in an organized way and
management leads these activities

11. •To Incorporate Innovations
•Changes are rampant in both technology and social processes and structure
•Such changes have to be incorporated to keep the organization alive and
kicking
•Management helps organizations to strategize for the future by helping them
acquire / develop high levels of competence, specialization and technology

12. •Integrating various Interest Groups
•Organized efforts of businesses witness pressures from various interest
groups for maximum share in the combined output
•Pressure groups such as shareholders, employees, governments, vendors,
etc. put various demands on the organization
•Management has to balance these pressures so as to ensure optimum
allocation of output / resources

13. •Stability in Society
•Management provides stability in society by modifying or changing
resources/ output in accordance with the changing social environment
•Today, innovation sways society and it is management’s role to provide
integration between traditions and innovations

14. Management as an Art
According to Mary Parker
Follett, Harold Koontz and
several others management
authors called management
“An Art of getting things
done through people”.

15. Management is an art due to
the following reasons:
Intelligence
Initiative
Innovative

16. Individual Approach
Application & Dedication
Goal Oriented

17. Management as a Science
Science is a systematic body
of knowledge which is
universally accepted. F. W.
Taylor father of scientific
management was perhaps
the first person to consider
management as a science.

18. Sciences can be broadly
divided into two groups:
•Physical Sciences
•Social Sciences
Management is a social
science because it deals with
human beings.

19. Frederick W. Taylor’s principles of scientific
management
Managers must:
- Study the way that workers perform their
tasks
- Understand the job knowledge that
workers have
- Find ways to improve how tasks are
performed
- Give written work rules
- Hire workers who have skills and abilities
needed for the tasks to be completed
- Train workers to perform according to the
established procedures
- Establish a level of performance
acceptable and fair linked to a good pay
system

20. Managers who believe in
management as a science are
likely to believe that there
are ideal managerial
practices for certain
situations.

21. Management
as an Art vs. as a Science
Art:
1)based on
practice and
creativity
2)it is a
theoretical body
of knowledge
3)has
personalized
application
Science:
1)based on
experimentation
2)is a systematized
body of knowledge
3)has universal
application

22. Conclusions
From the study above, we say that:
management is both, art and science.
According to ASME (American Society
of Mechanical Engineers):
“Management is the art and the science
of preparing, organizing and directing
human efforts to control the forces and
utilize the material of nature for the
benefit of men.”
Management has got two faces like a
coin; on one side it is art and on the
other side it is science.
“Management is a mixture of an art
and science – the present ratio is about
80% art and 20% science.” – Dean
Stanley.

23. WHO IS A MANAGER?WHO IS A MANAGER?
A Manager is the person responsible for planning and
directing the work of a group of individuals, monitoring
their work, and taking corrective action when necessary.
A manager is a person responsible for supervising and
motivating employees and for directing the progress of an
organization.

24. FUNCTIONS OF A MANAGERFUNCTIONS OF A MANAGER

26. ROLES & RESPONSIBILITIES OF A ROLES & RESPONSIBILITIES OF A
MANAGERMANAGER
INFORMATIONALINFORMATIONAL
ROLEROLE
INTERPERSONALINTERPERSONAL
ROLEROLE
DECISIONALDECISIONAL
ROLEROLE

27. INTERPERSONAL ROLE OF A MANAGERINTERPERSONAL ROLE OF A MANAGER
The roles in this category involve
 providing information and ideas.
FigureheadFigurehead 
- A manager has social, ceremonial and legal responsibilities. He is
expected to be a source of inspiration. People look up to him as a person with
authority, and as a figurehead.
LeaderLeader 
- This is where manager provide leadership for his team, his department
or perhaps his entire organization; and it's where he (manager) manage the
performance and responsibilities of everyone in the group.
LiaisonLiaison 
- Managers must communicate with internal and external contacts. He
needs to be able to network effectively on behalf of his organization.

28. INFORMATIONAL ROLE OF A MANAGERINFORMATIONAL ROLE OF A MANAGER
The roles in this category involve
 processing information.
MonitorMonitor 
- In this role, manager regularly seek out information related to his
organization and industry, looking for relevant changes in the environment. He
also monitors his team, in terms of both their productivity, and their well-being.
DisseminatorDisseminator 
- This is where manager communicate potentially useful
information to his colleagues and his team.
SpokespersonSpokesperson 
- Manager represents and speaks for his organization. In this role
he is responsible for transmitting information about his organization and its goals
to the people outside it.

29. DECISIONAL ROLE OF A MANAGERDECISIONAL ROLE OF A MANAGER
The roles in this category involve
 using information.
EntrepreneurEntrepreneur 
- A manager creates and control change within the organization.
This means solving problems, generating new ideas, and implementing them.
Disturbance HandlerDisturbance Handler 
- When an organization or team hits an unexpected
roadblock, it's the manager who must take charge. He also needs to help mediate
disputes within it.
Resource Allocator
 
Resource Allocator
 
– A manager also needs to determine where organizational
resources are best applied. This involves allocating funding, as well as assigning
staff and other organizational resources.
NegotiatorNegotiator 
– A manager may be needed to take part in, and direct, important
negotiations his team, department, or organization.

30. © Copyright McGraw-Hill. All rights reserved. 2–30
The Evolution of Management Theory
Figure 2.1Source:

31. 2–31
Four Principles of Scientific Management
•Principles to increase efficiency:
1.Study the ways jobs are performed now
and determine new ways to do them.
•Gather detailed time and motion information.
•Try different methods to see which is best.
2.Codify the new methods into rules.
•Teach to all workers the new method.
3.Select workers whose skills match the
rules.
4.Establish fair levels of performance and
pay a premium for higher performance.
•Workers should benefit from higher output

33. LEVELS OF MANAGEMENT
People in all of the organization operate and work in a dynamic
environment. But they do not operate at the same level. They
operate at different level. The hierarchy of the operation in the
organization is known as the levels of Management.
There are three levels of management :-
Top level of management
Midlle level of management
Lower level of management

34. TOP
LEVEL
MIDDLE
LEVEL
LOWER
LEVEL

35. Top Levels Of Management
Top level of management consist of all the people who are at the highest
position in the organization and contribute to the process of planning and
staffing. The top level of management consist of the CEO,CFO,MD etc.

36. Function of Top Level Management
To analyze, evaluate & deal with the external
environmental forces
To establish overall long-term goals strategy & policies of
the company including the master budget to allocate
resources.
To create an organizational framework consisting of
authority responsibility relationships.
To appoint departmental & other key executives.
To provide overall leadership to the company.

37. Middle Level Of Management Middle Level Of Management
The Middle Level Management consists of the Departmental Heads
(HOD), Branch Managers, and the Executives. The Departmental
heads are Finance Managers, Purchase Managers, etc. The Branch
Managers are the head of a branch or local unit. The Junior
Executives are Assistant Finance Managers, Assistant Purchase
Managers,etc

38. Functions of Middle Level Management
To interpret & explain the policies framed by top management
To compile & issue detailed instructions regarding operations.
To maintain close contacts with operating results so as to evaluate
performance.
To participate in operating decisions
To cooperate among themselves so as to integrate or coordinate
various parts of a division or a department

39. Lower Level Management
The lower level management consists of the Foremen and the
Supervisors. They are selected by the middle level management. It
is also called Operative / Supervisory level or First Line of
Management

40. Functions Of Lower Level Functions Of Lower Level
Management Management
To plan day-to-day production within the goals laid down by higher
authorities.
To assign jobs to workers to make arrangements for their training &
development.
To supervise & control workers & maintain personal contact with charge
hands.
To arrange materials & tools & to maintain machinery.
To advise & assist workers by explaining work procedures, solving their
problems, etc