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1. MANAGEMENT :Introduction-Meaning,characteristics
ofmanagement,functionsofManagement-POSDCORB,
LevelsandSkillsofManagement,RolesofManagers
Managementasscienceoranartorprofession,
ManagementandAdministration,Developmentof
managementthought-Earlymanagementapproaches-
Bureaucratic,ScientificandAdministrativetheory,Human
relationsMovementandModernmanagementapproaches-
Contingency,QuantitativeandSystemsApproach.
FUNCTIONS OFMANAGEMENT :PART-I
PLANNING:Meaning,TypesofPlans(Singleuse&
Standingplans),StepsinPlanningprocess.
ORGANIZING:–Meaning,Typesoforganization(Line,
Staff,Line&Staff,MatrixandCommitteeform)
Departmentation(Functional,Product,Process,Territorial
andCustomer),SpanofControl,MBOandMBE.

2. INTRODUCTION
6/20/2023
•Theconceptofmanagementisveryoldandhas
universalapplicationinalltypesoforganisations.
•BuildinggreatmonumentslikeChinawall,
TajMahal,orGreatAncienttemplesaroundthe
worldinvolvedmanagementofhugeamountof
resourcesandthuspeoplebehindthemwere
expertsinresourceplanningandutilisation.

3. DEFINITIONS
•Managementistheartofgettingthingsdonethrough
others.–MaryParkerFollet
•Managementistheprocessofplanning,organizing,
leadingandcontrollingtheeffortsoftheorganization
membersandusingallorganisationalresourcesto
achieverelatedgoals
•Managementistheprocessofworkingwithand
throughotherstoachievegoalsinachanging
environment
6/20/2023

4. Contd…
•WilliamFGlueckarugesthatmanagementis
theeffectiveutilizationofhumanandmaterial
resourcestoachievetheenterpriseobjectives.
•Managementinvolvestheprocessof
POSDCORB.(Planning,Organizing,Staffing,
Directing,(Leading,Motivating,Controlling)
Coordinating,Reporting,(Communication)&
Budgeting.
6/20/2023

5. Characteristics of Management
•MULTI-DISCIPLINARY
•GROUP ACTIVITY
•GOAL-ORIENTED
•FACTOR OF PRODUCTION
•UNIVERSAL IN CHARACTER
•SOCIAL PROCESS
•SYSTEM OF AUTHORITY
•DYNAMIC FUNCTION
•ART AS WELL AS SCIENCE
•PROFESSION
6/20/2023

6. FUNCTIONS OF MANAGEMENT
•Managershavetoperformdifferentfunctions
inordertoachievetheorganizationalgoals.
•Thesefunctionsare-
•PLANNING-it’saformulationoffuturecourseof
action.Makesthingstohappen,overcoming
theuncertaintiesoffuture.
•Itistheprocessofthinkingbeforeacting.
•Itissaidthatfailuretoplanisplanningtofail.
•Thusplanningisabsolutenecessaryand
withoutplanning,accomplishingtheobjectives
isalmostimpossible.
6/20/2023

7. •Planningprovidesanswerstoquestionslike-
Whattodo?Whyitisrequired?Whentodo?
Whoisthepersontodothetask?Whereto
do?Howtodo?
•ORGANIZING-isaprocessofidentifyingand
groupingworktobeperformed,definingand
delegatingresponsibilityandauthorityand
establishingrelationshipsforthepurposeof
enablingpeopletoworkmosteffectively
togetherinaccomplishingobjectives.
6/20/2023

8. •Assigningdefiniteresponsibilitytoeach
individual
•Delegatingtherequiredauthority
•Providingtherequiredphysicalfacilitiesand
resources.
•STAFFING-involvesmanningorproviding
humanresourcesforvariouspositionsofthe
organisations.
6/20/2023

9. •IncludesHRplanningwhichdeterminesthe
typeandquantityofpeoplerequired,
recruitmentwhichhelpsinattractingtalented
candidatestoapplyforthejobs,selectionof
rightpersonfortherightjobthroughdifferent
typesofselectiontestsandinterviews,
traininganddevelopingpeople,deciding
compensationforthepeople,appraisingtheir
performanceperiodically.
6/20/2023

10. •DIRECTING-processofdirecting/leadingthe
humanresourcestoperformthenecessary
tasksaspertheplans.
•Involvesthreeimportantcomponentsviz.,
communicating,motivatingandleading.
•Communicatingisaprocessofconveying
messages.Communicatingtoemployees
aboutthetechnicalknowledge,job
instructions,rulesandproceduresandany
otherinformationtogetthejobdone.
6/20/2023

11. •Motivating-Actofstimulatingthepeoplesothat
theygivetheirbesttotheorganisation.Ensuresthat
peopleworkwithinterestandinvolvement.
Motivatedemployeescanaccomplishrightquantity
andrightqualityofworkinrighttimewhichiskeyto
thesuccessofanyorganisation.
•Managersneedtosatisfytheneedsofemployees
andmeettheirexpectations.Goodworking
conditions,meaningfulwork,faircompensation,
equitabletreatment,recognitionandrewards,
growthopportunitiesetc.,
6/20/2023

12. •LEADING-processofinfluencingthe
peoplesothattheycontribute
organisationandgroupgoals.Manager
mustbeagoodleader.Actasrole
modelsandbecomeinspiringleaders-
requiresskillsforthemanagers.
•CONTROLLING-isdeterminingwhatis
beingaccomplished,applyingcorrective
measures.Planningandcontrollingare
knownas“SIAMESETWINS”
6/20/2023

13. •CO-ORDINATION-Synchronisation of
activities.
•Reporting-Oral or written account of
something observed .
•Budgeting-allocation of funds, process of
creating a plan to spend money
6/20/2023

14. Levels of Management
•Businessorganizationsirrespectiveoftheir
sizehavemanymanagerialpositionsintheir
structure.
•Managerialpositionslyinginthechainof
commandmaybeclassifiedintovariouslevels
ofmanagement.Theyare
•TOPLEVELMANAGEMENT
•MIDDLELEVELMANAGEMENT
•LOWERLEVELMANAGEMENT
6/20/2023

15. •TopLevel–highestlevelinthehierarchyand
ultimatesourceofauthority.
•Themanagersoftoplevelareaccountableto
ownersandallstakeholders.
•MD,BoardofDirectors,Chairman,President
VicePresidentViceChairmanGeneral
Managersconstitutetoplevel
6/20/2023

16. Majorfunctionsoftoplevelare:
•Tomakecorporateplansfortheentire
organisation.
•Todecideuponmatterswhicharevitalfor
survivallikeprofitability,andgrowthofthe
organisation.
•Toallocateresourcesforvariousprojectsand
departments
6/20/2023

17. •Tosetgoals.
•Todesignstructureoftheorganisation,
•Toframepolicies
•Toprovideleadership
•Toexercisecontrol
•Todirectmiddleandlowerlevelsof
management
6/20/2023

18. Middle level Management
•Inordertofillthegapwhichexistsbetween
functionalandoperationallevel.
•Linkbetweentopandlowerlevel.
FunctionsofMLMare:
•Topreparedepartmentalplanswithin
frameworkofcorporateplansgivenbyTLM
•Toestablishdepartmentalgoals
•Todecideaboutmeansofachievingthese
goals.
•Tomonitorlowerlevelmanagersby
coordinatingtheiractivities.
6/20/2023

19. Lower Level Management
•Supervisory level are known as backbone of the
organisations as they are responsible for getting
the work accomplished through the people at
operational level.
Functions are-
•Things done by the core group of workers at the
operational level
•To prepare the plans for their activities
•To issue orders and instructions
•To guide and assist workers
•To motivate workers
6/20/2023

20. SKILLS OF MANAGEMENT
•Conceptual skills:
Mental Ability to coordinate
Ability to abstract general ideas & apply them
in specific situations.
•Human/ Interpersonal skills:
A managers ability to work with others,
understand employee problems
A motivator /mentor
Getting along with the people.

21. SKILLS OF MANAGEMENT
•Technical skills:
A managers ability to use tools, methods,
procedures & techniques.
•Others-political
•analytical
•decision-making
•communication
•motivational
•leadership
•coordinating.

22. ROLES OF A MANAGER
•Interpersonal-figurehead,leader,
liaison
•Informational- communication,
monitor,disseminator,spokesperson.
•Decision- entrepreneurial,
disturbancehandler,resource
allocator,negotiator

23. MANAGEMENT ASCIENCEORAN
ART?
•Thereisaneedtounderstandtheexactnatureof
management.
•Managementisveryoldasoldascivilizationitself.
•Playingvitalroleinoursociety.
•Economicdevelopmentofcountriesandthe
developmentofbusinessorganizationswhichare
contributingtotheprogresscanbeattributedtothe
effectivemanagementofresources.
6/20/2023

24. •WhatisScience?–Systematicbodyofreasonable
knowledge.
•Knowledgedevelopedthroughstudyandpractice.
•Applicationofscientificmethodstothedevelopment
ofknowledge.
•Knowledgeisdevelopedfromhypothesis,
experimentationandanalysis.Eachhypothesisis
testedwithnecessaryexperimentationtodevelop
concepts.
•Siximportantelementsofsciencearethinking,
discoveryoffacts,verification,prediction,
measurementandexpression.
6/20/2023

25. Mustsatisfythefollowingconditions:
•Existenceofsystematicbodyof
knowledge
•Evolvedonthebasisofconstantenquiry
continuedobservation
•Universalapplication
•Establishedmustexplainaphenomenon
byestablishingcauseeffectrelationship.
•Validityandpredictability.
6/20/2023

26. WHAT IS AN ART ?
•Referstosystematicapplicationofskillor
knowledgeinaccomplishmentofresults.
•Themainelementsofartare:
•Personalskill
•Practicalknowledge
•Result-orientedapproach
•Regularpractice
•Creativity
6/20/2023

27. MANAGEMENT AS AN ART AND SCIENCE
•HAS both the features of science and art.
•Manager enquires systematic knowledge of
principles and practices of management, and
the applies the know-how combined with his
judgement, skills, abilities and intitution.
Hence it is both.
•MANAGEMENT IS THE OLDEST OF THE ARTS
AND YOUNGEST OF THE SCIENCES.
6/20/2023

28. MANAGEMENT AS A PROFESSION
•Professionisacallingwhichone
professestohaveacquiredspecialised
knowledge,whichisusedeitherin
instructing,guidingoradvisingothers.
•Itreferstoanyoccupationbywhicha
personearnslivelihood.
•IntheModernera,managementhas
becomeaprofessionandorganisations
aredevelopingprofessionalmanagers
whocancontributetotheirgrowth.
6/20/2023

29. ATTRIBUTES OF A PROFESSION
•Thecharacteristicfeaturesofaprofession
are:
•Existenceoforganizedandsystematicbody
ofknowledge.
•Formalisedmethodofacquiringtrainingand
experience.
•Establishmentofrepresentativeorganisation
withprofessionalismasitsgoal.
•Existenceofanethicalcodeofconduct.
•Charteringfeebasedonservicesprovided,
withdueregardforpriorityofserviceover
desireformonetaryreward.6/20/2023

30. ADMINISTRATION VS MANAGEMENT
•Administrationisdifferentfrom
management
•Administrationispartof
management
•Administrationandmanagementare
oneandthesame.
1/23/2014

31. Distinction b/w Admn. & Mgmt
Factors Administration Management
Nature of workDeterminationof
objectives & broad policies
Implementation of plans &
policies
Scope Major Decisions Framework for
Administration
Level of AuthorityTop level Mgmt Middle level & Lower level
Status owners of an enterpriseManagerial personnel with
specialized knowledge of
employees
Nature of
organization
Influence
Govt,military,
educational, religious
Decisions are influenced
by external factors, social,
political, legal etc
Business firms which have
economic motives
Decisions are influenced
by factors such as Values,
beliefs & opinions.

32. DEVELOPMENT OF MANAGEMENT
THOUGHT
•EarlyStagesofDevelopment-MILESTONE,AdamSmithinhis
firstfamousbookduring1776“WealthofNations”advocates
forconceptof“divisionoflabour”whichisaverypopular
managementprincipleeventoday.
•Divisionoflabourisbreakingofjobsintonarrowand
repetitivejobs,whichresultsinspecialization.
•Heillustrateshowdivisionoflabourleadstohighproductivity,
withthehelpofPINindustry.
•Heclaimedthat10individuals,eachdoingaspecializedtask,
couldproduceabout48,000pinsaday,whereasifthereisno
divisionoflabourthenproducingeven10pinsadayisvery
difficult.
6/20/2023

33. •SecondimportantmilestoneisIndustrial
Revolution-ledtoreplacementofmanpower
tomachinepowerandemergenceoffactory
systemwithorganisedmanufacturing.Large
efficientorganizedmanufacturingcalledfor
systematicmanagementandtheneedof
managerincreased.
6/20/2023

34. STAGES IN MANAGEMENT
THOUGHT
•EARLYMANAGEMENT APPROACHES:
1.Psychological approach: Robert Owen (1771-
1858), Charles Babbage (1792-1871), Henry
R. Towne.
2.Bureaucraticmodel-MaxWebber,1900
3.Scientificmodel-F.W.Taylor,1910
4.Functional/Administrative/Process
management-HenryFayol,1910
5.Humanrelationsmovement-EltonMayo,
19306/20/2023

35. Contd…
•THE MODERN MANAGEMENT THEORIES
1.Behaviouralsciences movement-Abraham
Maslow and Mc Gregor, 1940
2.Quantitative/ Operations Research approach-
F. W. Taylor, along with Gilberthand others
1950.
3.Systems Approach-Boulding, Johnson &
others, 1950.
4.Contingency Approach-Lorsch, Lawrence and
others
6/20/2023

36. PYSCHOLOGICAL APPROACH
A number of individuals offered
ideas that laid the groundwork for
subsequent, broader inquiries into
the nature of management. Among
the principal contributors to the
early management period are Robert
Owen, Charles Babbage and Henry R
Towne.

37. ROBERT OWEN (1771-1858):
•Basically a successful British entrepreneur was well
ahead of his time in recognizing the importance of
human resources.
•He became particularly interested in the working
and living conditions of his employees while
running cotton mill in New Lanark, Scotland.
•Owen tried to improve the living condition of the
employees by upgrading streets, houses, sanitation
and the educational system in New Lanark.
• His ideas laid the groundwork for the human
relations movement, which is discussed later in this
chapter.

38. CHARLES BABAGE (1792-1871):
•An English mathematician is widely known as the father of
modern computing. His projects produced the world‘s first
practical mechanical calculator and an analytical engine that
had the basic element of a modern day computer.
•Difficulties in directing his various projects, however, helped
him to explore new ways of doing things. In the process, he
made direct contributions to management theory.
•Babbage was enthralled with the idea of work specialization,
the decree to which work was divided into various jobs.
•He recognized that not only physical work but mental work
as well could be specialized.
•Babbage also devised a profit- sharing plan that had two parts,
a bonus that was awarded for useful suggestions and a portion
of wages that was depended on factory profit.

39. HENRY R. TOWNE
•He was a President of a lock manufacturing company.
•Towne argued that there were good engineers and good
businessmen, but seldom were they one and the same.
•Townewas also known for creating a modern system of
scientificmanagement, blending the production and
engineering of goods withmanagementand economics.
MAJOR FEATURES OF PRE-CLASSICAL THEORY:
•Robert Owen: Advocated concerns for the working and living
conditions of workers.
•Charles Babbage: Built the first practical mechanical
calculator and a prototype of modern computers: predicted
the specialization of mental work and suggested profit
sharing.
•Henry R. Towne: Outlined the importance of management
as a science and called for the development of management
principles.

40. Bureaucratic Model
•PropoundedbyMaxWebberintheyear1920
•AGermansociologistandateacheratBerlin
University
•Accordingtohim,recognitionandexerciseof
authoritywasafundamentalquestion
•ThreetypesofAuthority-Charismatic,
TraditionalandBUREAUCRATIC.
•Hismodelincludedthefollowing:
1.SeparationofSuperiorandSubordinate.
2.DivisionofLabour.
6/20/2023

41. Contd..
3.Clear divorce between personal and official
matters.
4.System of rules, regulations and procedures.
5.Hierarchy is based on legal authority and
power.
•CHARACTERISTICS:
Division of work, Hierarchy of work, rules and
regulations, staffing, impersonal conduct,
Technical competence.
6/20/2023

42. Contd..
•BENEFITS:
1.Employeesboundtofollowrulesand
regulations
2.Clearly defined duties and responsibilities
3.Division of labour
4.Selection process is merit based
5.Organisation does not suffer when people
quit.
6/20/2023

43. Contd..
•DISADVANTAGES:
1.System suffers from red tapism.
2.No belongingness
3.Resistance to change
4.Rigidity
6/20/2023

44. FREDERIC WINSLOW TAYLOR
•FATHEROFSCIENTIFICMANAGEMENT
•Laidthefoundationformodernscientific
managementbetween1880and1890
•Bornin1856beganhiscareerasan
apprenticeandturnerattheCrampShipyard,
Philadelphia,USA.
•LaterhejoinedMidvaleSteelCo.,during1878
asamachinistatshopfloor,byhishardwork
quicklymovedthroughtheranks;andbecame
thegangboss,foremen,andfinallyChief
Engineerin1884.
6/20/2023

45. •Workerswereneverproducingaccordingtotheir
capabilityandwithfearthattheymaylosetheirjobs.
•Theyneverexhibitedtheirabilitiesandnever
providedanyopportunitytomgmt.tounderstand
theirpotential.
•Taylorfeltthattherewasaneedtoincrease
efficiencyinproductionandhewaswitnessing
wastageofresourcesleadingtoverylowefficiency.
•Duetoignoranceonthepartofworker/mgmt.
6/20/2023

46. •Hewasoftheopinionthatbyincreasingproductivity,
reducingwastages,companiescanincreasetheir
profits,whichcanbeshared/benefittedbyboth.
•Thusheintroducedthepopularconceptof“afair
day’sworkand“afairday’spay”ledtoconceptof
scientificmanagementwhichaccordingtohim
establishingstandardsthroughsystematic
observation,experiments,andreasoning.
6/20/2023

47. TAYLOR’S CONTRIBUTIONS
In his famous book Principles of Scientific
Management published in 1911, they are:
•Science and not the rule of thumb
•Harmony, not discard
•Cooperation not individualism
•Maximum output in place of restricted output
•Developing all workers to the fullest extent
possible for their own and their organisation’s
highest prosperity.
6/20/2023

48. •Time and Motion study-advocated that workers are
not working according to their potential. Hence he
advocated for method study to find best method of
doing a job, and time study to find time required for
doing a job by a normal worker so that all works can
be standardized.
•DifferentialPaymentSystem-tomotivateemployees
toproducemoreandearnmore.Thisplanlinked
incentiveswithproduction-workerwhoproduces
lessthanstandardwouldgetalowprice,worker
surpassstandardwouldgethigherpiecerate.
6/20/2023

49. •ScientificRecruitmentandTraining-
emphasizedtheneedforscientificselection
anddevelopmentofworkers.Headvocated
thatmanagementshoulddevelopworker’s
skillsandenablethemperformbetterand
alsoprovidecareergrowth.
6/20/2023

50. FOLLOWERS OF FWT
•HenryLGantt-wasacolleagueatMidvaleCompany,
amechanicalengineer,supportedandadvocated
FWT’smgmt.Ganttadvocatedforharmonious
relationsforthedevelopmentofTaylor’sthoughts.
•RefinedTaylor’sincentivesystemandproposeda
guaranteedminimumwageswithbonusforsurplus
production.
•GanttisbestknownforGanttCharts,whichareused
inproductionscheduling,andalsoinPERTandCPM.
6/20/2023

51. •FrankandLillianGilberth-Taylor’sideaofworkstudy
developedbyhusbandandwife–wasanordinary
bricklayerandhiscareerattheageof17rosetothe
positionofChiefSuperintendent,laterbuilding
contractor.Throughhisresearchexperimentshewas
abletoreducethemovementsfrom18to5which
increaseproductivitysignificantly.Hewasattracted
byTaylor’sSM.Gilberthidentifiedallhumanbody
movementsemployedinindustrialworkactivities
andhedefined17movementswhicharecalled
“Therbligs”.Contributedtomicromotionstudy.
6/20/2023

52. ADMINISTRATIVE THEORIES
•HenryFayol-isconsideredas“Fatherof
AdministrativeManagementTheory”.Hefocusedon
developmentofbroadadministrativeprinciples
applicabletomanagement.
•WasaFrenchIndustrialist,authorof“Principlesof
Management”inFrenchin1916.Bookgot
recognitionallovertheworldafteritwastranslated
toEnglishin1949.
6/20/2023

53. •CONTRIBUTIONS-1.Classificationof
industrialactivitiesa)Technical
(production)b)Commercial(Buyingand
Selling)c)Financial(Searchforcapital
anditsoptimumutilization),d)Security
(Protectingpropertyandpersons)e)
Accounting(Recordingfinancial
transactions)f)Managerial(planning,
organizing,coordinatingandcontrolling)
6/20/2023

54. •Managementistheprocessofworkingwith
andthroughotherstoachievegoalsina
changingenvironment
•Managementistheprocessofcoordinating
workactivitiesefficientlyandeffectively
•Henryfayolsaysthatmanagementisto
forecastandtoplan,toorganise,tocommand
tocoordinateandtocontrol
6/20/2023

55. •Principlesof Management-Greatest
contributiontomanagementwasthe14
principles–Divisionofwork,Authorityand
responsibility,Discipline,UnityofCommand,
UnityofDirection,Subordinationof
individualtogeneralinterest,Remuneration,
Centralization,ScalarChain,Order,Equity,
Stabilityoftenure,initiativeandEspiritde
corps.
6/20/2023

56. •Divisionofwork-meansdividingtheworkinto
smallerandsmalleractivities.
•Authorityandresponsibility-Rightto
commandandobligationtoperformatask
•Discipline-Obedienceofrules,respecting
agreement.
•UnityofCommand-Everyemployeeshould
receiveorderfromonlyonesuperior.
•Unityofdirection-Shouldhaveasingleplanof
action.Musthaveoneheadandoneplan.
6/20/2023

57. •Subordinationofindividualinteresttogeneral
interest-Organizationalinterestissupreme
andinterestofanyoneindividualorgroup,
shouldnothaveprecedenceoverinterestsof
organizationasawhole.
•Remuneration-Wagespaidtoemployeesfor
theirservicesandmustbringmaximum
satisfactiontobothemployer/employee.
6/20/2023

58. •Centralization-Degreeofcentralizationand
decentralizationshouldbedecidedonthebasisof
individualcircumstances.
•Scalarchain-Lineofauthorityfromtoptobottomis
calledscalarchain.Itshouldnotbebrokenand
departedneedlessly.
•Order-Peopleandmaterialmustbeatrightplace.A
placeforeveryoneandeverythingintheorgn.and
theyshouldbeattherespectiveplaces.
6/20/2023

59. •Equity-Managersmustbekindandfairtotheir
subordinates.Mustbeequallytreated.
•Stabilityoftenure-Highlabourturnoveriscauseand
effectofpoormanagementanditisdangerousas
wellascostlyfortheorganisation.
•Initiative-Subordinatesmustbeencouragedtotake
initiativewillexerthigherlevelsofefforts.
•Espiritdecorps-Unityisstrengthandpromoting
teamspiritwillbuildharmonyandunitywithinthe
organisation.
6/20/2023

60. Difference B/W Taylor & Fayol
1) Lower level ManagementTop Level Management
2) Bottom to Top ApproachTop to Bottom Approach
3) Improve the productivity of
Labor & eliminate waste
Chief Executive who is responsible to
take decisions whichflowed
downwards.
4) His work is called as
“Scientific Mgmt”
His work is called as “Modern Mgmt”
5) His philosophy underwent
into a big change due to
modern developments
His principles stood with test of time
& well accepted even in the present
days
6) Narrow Perspective Broad Perspective
7) Efficiency through work
simplification & standardization
Overall Efficiency through application
of principles.

61. Human Relations Movement
•Elton Mayo (1880 –1949)
Heprimarilystudiedthehumanrelationsin
theOrg.HiswidelyreadbooksareThehuman
problemsofIndustrialcivilization&The
socialProblemsofIndustrialcivilization
Heconductedanextensiveinvestigation
whichstartedin1927attheHawrthrone
Plant,nearChicago,oftheWesternElectric
Company.TheExperimentwasfamously
knownas“HawrthroneStudies”
6/20/2023

62. •ANewsetofexperimentsasmall
groupofworkerswasplacedina
separateroomandanumberof
variableswerealtered:
•Illuminationexperiments
•Relayassemblytestroom
•Interviewingprogramme
•Bankwiringobservation

63. 6/20/2023

64. 6/20/2023

65. 6/20/2023

66. 6/20/2023

67. 6/20/2023

68. 6/20/2023

69. 6/20/2023

70. 6/20/2023

71. 6/20/2023

72. •Partwaythroughthissetofexperiments,
ELTONMAYO(1880-1949)andsome
associatesfromHarward,includingFRITZJ
ROETHSBERGERandWILLIAMJDICKSON
becameinvolved.
•Concludedthatinformalworkgroups,the
socialenvironmentofemployeeshavea
positiveinfluenceonproductivity.
6/20/2023

73. MODERN MANAGEMENT APPROACHES
BehaviouralScience Approach
•Mayoandhiscolleaguespioneeredtheuseof
thescientificmethodintheirstudiesofpeople
intheworkenvironment.
•Laterresearchers,morerigorouslytrainedinthe
socialsciencesusedmoresophisticatedresearch
methodsandbecameknownas“Behavioral
Scientists”ratherthan“Humanrelations
theorists”.
•Scientistsbroughttwonewdimensionstothe
studyofmanagementandorganisations.
•Firsttheyadvancedanevenmoresophisticated
viewofhumanbeingsandtheirdrivesthandid
Mayoandhiscontemporaries.
6/20/2023

74. •AbrahamMaslowandDouglasMcGregoramong
others,wroteabout“selfactualizing”people.Their
workspawnednewthinkingabouthowrelationships
canbebeneficiallyarrangedinorganisations.
•AccordingtoMaslow,anUSpsychologist,theneeds
thatpeoplearemotivatedtosatisfyfallintoa
hierarchy.
•Physiologicalandsafetyneedsareatthebottomof
thehierarchy,inbetweentheSocial(affiliation)needs
andatthetopareegoneedsandselfactualizing
needs.
•Ingenerallowerlevelneedsmustbesatisfiedbefore
higherlevelneedscanbemet.
6/20/2023

75. •McGregor,ProfessoratMassachusettsInstituteof
technology,providedanotherangleonthis“Complex
person”idea.
•Hedistinguishedtwoalternativebasicassumptions
aboutpeopleandtheirapproachtowork.
•ThesetwoassumptionswhichhecalledTheoryXand
TheoryY.
•Peoplearelazyanddislikework,theymustbe
constantlyforcedintoputtingfortheffortinthejobs.
•Ontheotherhandassumethatpeoplerelishwork
andeagerlyapproachtheirworkasanopportunity
todeveloptheircreativecapacities.
6/20/2023

76. QUANTITATIVE APPROACH
•AfterWW-IIBritaindesperatelyneeded
tosolveanumberofnew,complex
problemsinwarfare.
•Formedthefirstoperationalresearch
teams,bypoolingtheexpertiseof
mathematicians,physicists,andother
scientistsinORTEAMs,andachieve
significanttechnologicalandtactical
breakthroughs.Theteamusedearly
computerstoperformthethousandsof
calculationsinvolvedinmathematical
modeling.6/20/2023

77. •Newindustrialtechnologieswerebeingputintouse
andtransportationandcommunicationwere
becomingmorecomplicated.
•Thesedevelopmentsbroughtwiththemahostof
problemsthatcouldnotbesolvedeasilyby
conventionalmeans.
•IncreasinglyORspecialistswerecalledontohelp
managerscomeupwithanswerstothesenew
problems.Overtheyearsprocedureswere
formalisedintowhatisnowmoregenerallycalled
theManagementScienceSchoolorQuantitative
ApproachtoManagement.
6/20/2023

78. •Theywereoftheviewthatifmanagingor
decision-makingisalogicalprocess,itcanbe
expressedinmathematicalsymbolswiththe
helpofmodels.
FEATURES:
•Usageofmathematicalmodels
•Quantifiable
•Usageofsymbols
•ORtools
6/20/2023

79. LIMITATIONS
•Decision making is just a part of managerial
activity
•No weightage to human element
•Decision making is instantaneous
•Does not take into account Qualitative aspects
•Updated data availability.
6/20/2023

80. Systems Approach to Management
•ContributionofChesterBernardandothers
•Asystemisasetofinterrelatedand
interdependentcomponentswhichcontributesto
theuniquecharacteristicsofawhole.Asystemis
anassemblyofinterconnectedthingstoforma
complexunity.
•Asystemsapproachtomanagementconsiders
organisationasasystem.Itconsiders
organisationasapartoflargersystemsuchas
industrytowhichitbelongs,toeconomicsystem
andsocietyasawhole.
•Organizationisasystemwhichreceivesinputs
fromexternalenvironment,transformstheminto
productsorservicesandexportstheoutputsto
environment.
6/20/2023

81. FEATURES
•Open system
•Adaptive system
•Organisation as a whole
•Sub-systems
•Boundaries
•Multi-disciplinary Approach
•Inter-dependency
•Environmental influences
•Analysis of problems as a whole
•Dynamic and adaptive nature of organisation
LIMITATION:
•Abstract and vague
6/20/2023

82. Contingency Approach to Management
•Manager’staskistoidentifywhich
techniquethatwill,inaparticular
situationandatparticulartime
contributebesttotheattainmentof
managementgoals.
•Itwasdevelopedbymanagers,
consultants,andresearcherswhotriedto
applytheconceptsofthemajorschools
toreal-lifesituations,theysoughtan
explanation.
6/20/2023

83. •Asperthisapproachmanagersshoulddevelop
variablemethodsorplansasperthe
contingenciesorsituationdevelop.
•Thetypeofleadershipandcommunication
flowisthemajorinfluential.
FEATURES:
•Managementisentirelysituational
•Thepoliciesandproceduresshouldrespond
totheenvironment.
•Thereisnoonebestwayofmanaging
6/20/2023

84. DISTINCTION
POD SYSTEMSAPPROACH CONTINGENCY APPROACH
EMPHASIS Inter-dependencyamong
sub-systems
Environment and business-
situational
FOCUS Internal environment External environment
SITUATION All orgn’sare same Different
ENVIRONMENT Orgn. adjusts to changePre-adaption
MODEL Theoretical Practical
ClassicalPrinciplesSilent validity Rejects blind application
6/20/2023

85. Most Likely Questions
•Differentiate between Administration &
Management.
•Is Management a Science or an Art?
•Briefly explain Henry Fayol’s 14 Principles of
Management.
•What is Management? Write various
features/nature of Management.
•Explain briefly the Roles of a Manager.
•Explain briefly the levels of Management &
Functions of Management.

86. •Management is…………………..
An Art b) A Science c) A Profession d) All of these.
•The pioneer of Human relations Movement……………………………..
Maslow b) Adam Smith C) Elton Mayo d) Max Webber
•Espiritde corps: Unity of strength, Scalar Chain: ……………………….
Span of Control b) unity of command c) Gang Plank d) Order
•Rule of Thumb is ……………………..
Precision b) Estimation c) Standardization d) Equalization.
•Father of Scientific Management is ……………….
Charles Babbage b) Chester I. Bernard c) F.W Taylor d) Max Webber.
•Inter Personal Skill is required more at ……………………
Middle Level b) Lower Level c) Top Level d) All Levels.

87. PLANNING
•Istheprocessofcopingwithfutureuncertainties
byformulatingfuturecourseofactionstoachieve
specificresults.
•Bridgesthegapbetweenwhereweareandwhere
wewanttogo.
•Makesthingshappenthatwouldnototherwise
happen.
•Itisabasicprocessbywhichmanagersselect
goalsorobjectivesanddeterminehowtheycan
beachieved.

88. NATURE/ CHARACTERISTICS OF PLANNING
•Intellectual process
•Primacy of planning
•All managers plan
•Rational approach
•Focus on objectives
•Leads to efficiency and economy
•Limiting factors
•Co-ordination
•Flexibility
•Realistic
•Continuous

89. PLANNING PREMISES
Meaning:Assumptionsorpostulatesofwhatis
likelytohappeninthefuture.
Types:
Internal/External
Controllable/Uncontrollable
Tangible/Intangible
6/20/2023

90. 6/20/2023
STEPS IN PLANNING:
•BEINGAWAREOFOPPORTUNITIES:-Managers
needtosetobjectivesbasedonavailable
opportunitiesafteranalyzingtheirstrengths
andweaknesses.
•ESTABLISHINGGOALS:-Goalsoftheorgn.and
itssubunitshavetobedefinedandexplained
inclearterms.Goalshavetobeexpressedin
quantitativetermsforallkeyoperational
areaslikeproduction,sales,marketshare,
productivity,profit,employeerelationsetc.,
SMART

91. 6/20/2023
•ESTABLISHPLANNINGPREMISES:-Premisesare
nothingbutassumptionsaboutvarious
elementsoftheenvironment.Itprovides
basicframeworkinwhichplansoperate.
Successfulimplementationofplansis
influencedbytheenvironmentalfactorsin
whichmanagersfunction,andhence
appropriateassumptionshavetobemade
aboutvariousaspectsoftheenvironment,
bothinternalandexternaltotheorganisation.

92. 6/20/2023
•DECIDINGTHEPLANNINGPERIOD:
Plansaremadefordifferenttimeperiods.
•DEVELOPINGALTERNATIVES,EVALUATINGAND
SELECTINGTHEBESTCOURSEOFACTION:
Itinvolvesdeterminationofvariouscoursesof
action,dependingonorgn’sstrengthsand
resourceavailability.Studiesontechnical
feasibility,economicviability,optimum
utilizationofscarceresources,impactonthe
society,etc.areimportantfactorswhich
influenceselectionofaparticularcourseof
action.

93. 6/20/2023
•DERIVATIVEPLANS-Planswhicharedeveloped
forvariouslevelsoftheorgn.fromtheorgnl.
objectivesareknownasderivativeplans.
Orgnl.plansarechosenafterevaluationof
variousalternatives.Theseplansaremadefor
eachfunctionalarea.
•REVIEWPERIODICALLY:-Planmustalsoinclude
adequatefollowuptodeterminecompliance.
Tomakesurethatplaniscontributingto
resultsitsreviewatregularintervalsis
required.Reviewalsohelpsintakingtimely
correctiveactionsforanydeviations,when
theplanisinforce.

94. CLASSIFICATION OF PLANS
•Based on nature-Strategic, Corporate and
tactical
•Based on time span-Long-term, Medium
term and short term
•Based on usage-Single-use and standing
plans
6/20/2023

95. 6/20/2023
CLASSIFICATIONOFPLANS
SINGLE-USE
PLANS
•PROGRAMMES
•PROJECTS
•SCHEDULES
•METHODS
•BUDGETS
•VISION
•PURPOSE/
MISSION
•OBJECTIVES
•POLICIES
•PROCEEDURES
STRATEGIES
•RULES
STANDING
PLANS

96. 6/20/2023
VISION
•Plan which describes the desired future state and it
explains what the management of an organization
wants to achieve.
•Articulating the vision of the company through a
vision statement help to motivate employees at all
levels and also ensure that they work united towards
reaching this future state.
•It also helps in formulating strategies for attaining
goals.

97. 6/20/2023
Purpose or Mission
•WHYOrganizationsexistinsociety?
•Therolethatanorganisationplaysinthesocietyis
depictedintheMissionstatement.
•Missionstatementdescribesthebasicphilosophy
andpurposeofexistenceofanorganisation.
•Describesvalues,beliefs,andguidelinesthatan
organisationwouldliketopractice.

98. 6/20/2023
Objectives or Goals
•Goals are end points of all management actions.
•They are specific targets to be achieved by the
organisation.
•Justification for any management actions lies in
achieving these specific objectives.
•All management functions like organising, staffing,
directing and controlling are directed towards
attainment of goals.
•They serve as a benchmark for measuring efficiency
and effectiveness of the organisation.

99. 6/20/2023
Characteristics
•Tangible objectives like productivity, financial ratios,
market share, profits can be quantified.
•But items like worker’s morale, objectives of social
responsibility cannot be exactly quantified they can
be expressed only qualitative terms.
•Objectives have a hierarchy. That influence entire
organization and have wider scope are known as
enterprise objectives.

100. 6/20/2023
•Objectivescanbeshort/term-longterm.Oneis
immediategoalsandanotheroneislongerperiod.
Theyareinterrelated.
•Objectivessometimesmaybeinconflictwitheach
other.Inmanyorganizationsvariousdepartmental
objectivesmayclashwitheachother.Itisvery
importanttoresolvesuchconflictsamicably.
•Objectivesareinterdependentandmustsupportone
anothersothattheymaybeachieved
simultaneously.

101. 6/20/2023
POLICIES
•Apolicyisabroadstatementformulatedtoprovide
guidanceindecisionmaking.
•KOONTZdefinespolicyas“AGeneralStatementof
understandingwhichguidesthethinkingandaction
ofmanagersindecisionmaking”.
•Policiesareguidelinesforactions.
•Provideaframeworkwithinwhichdecisionsare
made.

102. 6/20/2023
•Canbewritten,oralorimplied.
•Canbebothrestrictiveandpermissive.
•PROCEDURES-Isasystematicwayofhandling
regulareventsorrepetitivetasks.
•Isaseriesofrelatedtasksthatmakeupthe
chronologicalsequenceandestablishedwayof
performingthework.

103. 6/20/2023
•Policiesdefineabroaderframeworkwhereas
proceduresdefineasequenceofactivitieswithin
thatarea.
•Proceduresareusedinallfunctionalareasof
management.
•METHODS-Severalmethodsareaccomplishingeach
phaseofworkwithinaprocedure.
•Itestablishesthemannerofdoingawork.
•Itindicatestechniquetobeemployedtomakethe
procedureeffective.

104. 6/20/2023
•RULES-Aruleisaplanwhichprescribesthe
courseofactionthatisexplicitlydefinedas
whatistobedoneunderagiven
circumstance.
•Rule must be followed precisely and adhered
strictly.
•Example: No smoking/Entry is restricted.

105. 6/20/2023
•PROGRAMMES:-AProgrammeisavery
comprehensiveplanwhichincludesacomplex
setofgoals,procedures,rulesandresources
forputtingaplanintoaction.
•Programmesaredrawnuponthebasisof
objectivesandexplainthestepsneededfor
achievingtheobjectives.Itcanbemajoror
minor.

106. 6/20/2023
•BUDGET:-Arequantitative/financialplansfor
usingresources.
•Planforagivenperiodoftimeinfutureand
expressedinfinancialorphysicalunits.
•Budgetaryestimationscanbemadeforall
resourceslikeManpowerrequirement,
Machinesandtoolsrequirements,Money
required,time.
•Differentkindsofbudgetsarepreparedfor
effectiveutilizationofscarceresources.

107. 6/20/2023
•PROJECTS:-arepartsoflargeprogrammes,whichcan
beidentifiedasacleargroupofactivitieswith
definiteobjectivesandtimeframeforcompletion,
andwhichrequiresspecializedabilities.
•Projectscannotbeextendedbeyondtheir
completiontimeasitmayresultinescalationcosts
thatresultsinhugeloss.
•Timeandcostconstraintsarethetwomajorissuesin
projectmanagement.

108. 6/20/2023
•SCHEDULES:-A timetable of work.
•Specifiesthedateandtimewhenataskis
tobeginandwhenitistobecompleted.
•Schedulesaretobeflexibleasrealistic
timeestimationwithaccuracyisdifficult
andhencetheflexibilitycanbeachieved
bygivingmaximumandminimumtime
periodsforcomplexactivitieswhere
estimationisdifficult.

109. 6/20/2023
LIMITATIONS OF PLANNING
•Lack of accurate information.
•Cost and time involved in planning
•May result in rigidity
•May prevent innovation
•External factors are beyond the control of the
organisation.

110. 6/20/2023
ORGANISING AND STAFFING
•WhatisanOrganisation?
•Acooperativesocialsysteminvolvingthe
coordinatedeffortsoftwoormorepeople
pursuingasharedpurpose.
•Isastructureoramechanismconsistingof
groupofpeoplewhoareinterrelatedand
interdependentandworktogetherfor
achievementofcommonobjectives.

111. 6/20/2023
•PurposeofanOrganisation:
•Istoachievegoalsforwhichitisformed.
•Forabusinessorgn,thepurposeistodeveloppeople
andtheirskillssothattheycancontributetowards
thegrowthofenterprisethroughprofits.
•Fornonprofitorgntheobjectiveistoservingthe
membersorcommunityinaproductivemanner.

112. 6/20/2023
ORGANIZING
ORGANIZING:-theprocessofcreatingor
formingorganizations.Itisdefinedasthe
processofcreatingstructureormechanism
consistingofgroupofpeoplewhoare
interrelatedandworkingtowardscommon
objectives.

113. 6/20/2023
ORGANIZATION CHART
•It’s a graphical representation of an organization.
•It’s a diagram that illustrates various positions in the
organization and the reporting lines between units
and people within the organization.
•It conveys four kinds of information.
1.) It includes different units of orgn.,
2.)Workperformedbydifferentpersonnel,
3.)Reportingrelationshipsindicatedbyconnecting
linesinthechartand
4.)Numberofhierarchylevels.

114. CLASSIFICATION OF ORGANISATIONS
•Basedonmotive-ProfitmakingandNon-
Profitorganisations.
•BasedonCommunicationchannel-Formal
OrganizationsandInformalorganisations.
•Basedonstructure-Line,stafforfunctional,
line&staff,Matrixandcommitteeformof
orgn.
6/20/2023

116. 6/20/2023
CLASSIFICATION OF ORGANISATIONS
•LineOrganization:-Isalsocalledasscalaror
militaryorgn.anditisbasedonauthority.It
depictsclearlineofauthority.
•Theauthorityandresponsibilityarehighest
atthetopandgoonreducingsuccessively
witheachlevel.
•Scalarchainisstrictlyfollowed.
•Itissimplestandoldesttypeoforganization
anditisfoundinmostofthesmall
organisations.

118. 6/20/2023
•Merits:Quickdecisionmaking,Strict
disciplinecanbemaintained,Clear
authorityandresponsibility,Scalarchain
andunityofcommandarefollowed.
•Demerits:Noscopeforspecialization,
Keypersonsareoverloadedwithwork,
Lessefficiencyduetolackof
specialization.

119. 6/20/2023
TAYLOR’S FUNCTIONAL ORGANISATION
•Itisbasedonspecialization.
•Specialistsareavailableforeachfunctionandthis
ideawasoriginatedbyFWTaylorandhenceitis
knownasTaylor’sfunctionalorganisation.
•Merits:Scopeforhighspecialization,Tasksare
handledbyexpertsandqualityofworkand
efficiencyishigh,Areaofworkisnarrowandkey
personsarenotoverloaded,Betterdecisionsare
made.
•Demerits:Delayindecisionmaking,Scalarchainand
unityofcommandarenotfollowed,Maintaining
disciplineisdifficult,Coordinationamongforemenis
difficult

121. 6/20/2023
Line and Staff Organization
•Combination of both line and functional.
•Line members have authority where as staff
members do not have.
•Line members are known as “Doers” and staff
members known as “Advisors”.

123. 6/20/2023
•Merits:-Availability of specialist advice from staff
members, Single line authority and accountability is
involved, Expert advise can improve effectiveness,
Experts can reduce load of line members.
•Demerits:-Staff members who have expertise do not
have authority, Coordination between line and staff
members is difficult, Personality clashes may result
between line and staff members

124. 6/20/2023
Committee Organization
•Is a group of people who meet, discuss and decide
about actions to be taken for organizational issues
which cannot be solved by individuals.
•When organization consists of different committees
it is called committee organization.
•Different committees like Standing or ad hoc,
executive, line and staff committees are used in
orgns for different purposes.

126. Matrix organisation
•A matrix organizational structure is the
arrangement of the personnel, i.e., the matrix
leader, managers and employees, across the
grid, such that a hybrid hierarchy is
maintained. Here, there is a vertical and
horizontal flow of direction and information,
such that each subordinate has dual bosses.
Out of these, one is the functional manager;
and the other is the project manager.

128. 6/20/2023
DEPARTMENTATION
•ADepartmentmaybedefinedasa
workgroupwhichisbroughttogetherfor
performingcertainfunctions,whichare
similarinnature.
•Istheprocessofsplittinganorgninto
smallermanageablesubunits.
•Isbasedoneithersimilaritiesinfunction
orproducts,oranyotherclose
relationships.

129. 6/20/2023
TYPES
•FunctionalDepartmentation:Dividingorgn
intosmallerunitsonthebasisoforgn’smajor
activities.
•Eachfunctionlikemarketing,HR,Finance,
R&Detc.,isassignedasadepartmentandit
specializesonthoserelatedactivities.
•Merits:Promoteshigherspecializationand
thusoperationalefficiency,verysimpleform
ofdepartmentation,Eachfunctionalareais
madeaccountableforitscontributiontoorgnl
goals,Supervisioniseasyintheirrespective
areas.

131. 6/20/2023
•Unityofdirectionisfollowed,Effectivein
controlandcoordination,Provideseconomies
ofscale.
•Demerits:Alldepartmentscannotbeassigned
withprofitresponsibility,Co-ordination
amongdepartmentsrequiresmoreattention,
otherwiseinterdepartmentalconflictsmay
result,Eachdepartmentmayfocuson
departmentalgoalsandthusmayresult
narrowfocus,Developmentofmanagersis
limitedtoonlyonearea,Poordecisionmaking
duetonarrowfocus.

132. 6/20/2023
Product Departmentation
•Organizationswhichhavediversified
businessactivitiesandtheyareinto
productionofseveralproductsorservices.
ITC,Phillips,Videocon,Wiproarebest
examples.
•Merits:-Eachdepartmentisspecializedina
product,Betterproductdevelopmentand
marketing,Performanceevaluationofeach
unitiseasyandresponsibilitycanbefixedto
eachunit.Expansioniseasy,Trainingand
developmentactivitiescanbebetter
planned.

134. 6/20/2023
•Demerits:-Duplicationofwork,Less
cooperationamongdepartments,High
overheadcosts,Lotoftimeiswastedin
solvingconflictsbetweendepartments.

135. 6/20/2023
Customer Departmentation
•Whenanorgnsellsawidevarietyofgoods
whichdifferfromcustomertocustomerand
eachcustomerhasdistinguishedneeds,this
typeofdepartmentationisused.
•Merits:-Canconcentrateonitsunique
customerneeds,Helpsinunderstanding
betterfeelofcustomers,Specializationis
achieved,Highcustomersatisfaction.
•Demerits:-Duplicationofwork,Under
utilisationofresourcesandmanpower.

137. 6/20/2023
Territorial Departmentation or
Geographical Departmentation
•Createdonthebasisofgeographical
lines.
•Whenorgn’soperationsarewidely
spreadacrossdifferentgeographical
locations,thistypedepartmentationis
needed.
•Merits:-Canconcentrateonlocalneeds,
Betterunderstandingoflocalcustomers,
effectiveutilizationoflocalresources,
reducestransportationcosts,Easyto
expand.

139. 6/20/2023
•Demerits:-Needs more
managers,Coordination between regional
units is difficult, Duplication of work.

140. 6/20/2023
SPAN OF CONTROL
•Referstothenumberofsubordinatesa
managerorasupervisorcancontrol
effectively.
•Nomanagercancontrolinfinitenumberof
subordinatesandthereisalimittothe
numberofsubordinatesonecanhandle.
•Dependinguponthenumberofsubordinates
itcanbeeitherwidespanornarrowspan.

141. 6/20/2023
Factors influencing Span of Control
•Manager’scapability-Experienced,capable
managerscansupervisemorenumberof
subordinatesthaninexperiencedandlesscapable
managers.
•Subordinate’scapability-Experiencedandskilled
subordinatesneednotrequireclosesupervision
andtheyarecapableofworkingontheirown.
•Complexityofwork-Taskofsubordinatesis
complexandtheyneedmoreassistancethen
narrowspanisused.

142. 6/20/2023
•Similarity of tasks-Repetitive jobs may not
require close supervision and thus wider span
can be used. For non-routine tasks narrow
span is used.
•Time required for non supervisory activities-If
a manager or a supervisor needs to attend
more non supervisory activities then he may
have little time to attend subordinates and
narrow span is required.

143. 6/20/2023
•Technologyused-Orgnsemployingmodern
technologywithtasksautomatedmayuse
widerspanasautomationreducesmanual
laborthusclosesupervisionisnotneeded.

144. 6/20/2023
MANAGEMENTBYOBJECTIVES
•MBOdevelopedbyprolificmanagementwriter
PeterFDruckerin1954.
•Itisaprocesswherebysubordinatesandsupervisors
ofanorganizationjointlydefinecommon
goals,defineeachindividual’smajorareasof
responsibilityintermsofresultsexpectedofhimand
usethesemeasuresasguidesforoperatingtheunit
andassessingcontributionofeachofitsmembers.

145. 6/20/2023
•InsimpletermsMBOisconcernedwithjoint
participationofsubordinateandsuperiorin
theestablishmentofclearandspecific
objectivesforeachindividualandunitofthe
orgn.
•ProcessofMBO-Establishmentofgoalsfor
thewholeorganisationbythetoplevel
management.

146. 6/20/2023
•Establishingdepartmentalgoalsinlinewith
orgnlobjectives.
•Preparationofspecificgoalsbysubordinate
withintheframeworkoftheirunitor
departmentalgoals.
•Jointdiscussionbetweensuperiorand
subordinateandreachinganagreementon
goals.
•Correctivemeasuresaretaken,ifrequired.

147. 6/20/2023
ADVANTAGES OF MBO
•Integrationofindividualandorgnlgoals.
•Resultsindevelopmentandutilizationofhuman
resources.
•Improvementinproductivity.
•Improvedcommunicationbetweensuperiorsand
subordinates.
•Motivatessubordinatesatlowerlevelastheyare
alsopartofgoalsetting.
•Increasescommitmenttowardsgoals.
•Helpsinperformanceappraisal.
•Clarityofgoals.

148. 6/20/2023
MANAGEMENT BY EXCEPTION
•Management style wherein managers intervene only
when their employees fail to meet their performance
standards.
•If the employees are performing as expected, the
manager will take no action.
•The idea is that mgmt should spend its valuable time
concentrating on important strategic issues.
•Attention is given to other issues only when there is
a deviation which requires some investigation.