INTRODUCTION TO

MANAGEMENT
MS-101
Definition of Management
• Management is the process of planning, organizing, leading, and
controlling resources, including human, financial, and material, to
achieve organizational goals efficiently and effectively.
• It involves coordinating efforts to ensure the organization operates
smoothly and achieves its objectives.
Evolution of Management
Classical Approach: Scientific management
• F.W Taylor was an American mechanical engineer who started his career as a
mechanic and rose to the position of chief engineer in Bethlehem Steel
Company, USA.
• main cause of inefficiency and wastage in factories was ignorance on the part
of both workers and management because of the use of traditional,
unscientific rules, and rule of thumb.
• His philosophy and ideas are given in his book ‘Principles of Scientific
Management’.
• For his contribution, he is also known as the Father of Scientific
Management.
Classical Approach: Scientific management
1. Science, Not Rule of Thumb
• Scientific method is based on cause and effect
• reduces wastage of time and resources
2. Harmony, Not Discord
• no conflict between the workers and managers.
• realize the importance of each other and should work together
3. Cooperation, Not Individualism
• cooperation between management and workers
4. Development of Workers
• organization should follow the scientific method of selection of workers
• To increase efficiency, training should be provided.
Classical Approach: Administrative Theory/Functional
management
• Father of the general principles of management, Henry Fayol was a French
industrialist.
• He joined a French mining company in 1860 as an engineer and rose to the
position of its managing director in 1888. At that time, his company was at
the stage of bank insolvency.
• With broad administrative experience, he contributed a lot to his company.
When he retired in the year 1918, the company was in excellent condition.
• Henri Fayol recognized the need for Principles of Management. He identified
14 Principles of Management.
Classical Approach: Administrative Theory/Functional
management
1. Division of work: Work of all kinds must be divided and allocated as per competence,
qualification, and experience of individuals.
2. Authority and Responsibility: According to this principle, there should be a proper balance
between authority and responsibility.
3. Discipline: Discipline refers to obedience to the rules and regulations of the organization.
4. Unity of command: According to this principle, each subordinate should receive orders
and be accountable to only the superior.
5. Unity of direction: According to this principle, all the activities should be carried under the
direction of one head, and there should be effective coordination in all the activities.
6. Subordination of Individual Interest to General Interest: According to this principle, the
interest of the organization as a whole must prevail over the interest of the individual.
7. Remuneration of employees: According to this principle, remuneration should be fair and
satisfactory to both employees and the organization.
Classical Approach: Administrative Theory/Functional
management
8. Centralization and Decentralization: There should be a proper balance between centralization and
decentralization.
9. Scalar Chain: There is a scalar chain of authority and communication that moves in a straight line from the
superior to the lowest subordinate.
10. Order: Henri Fayol emphasized on two types of order: material order and social order. In material order, there
must be a plan for everything. It ensures to fix a place for various material tools. Whereas in social order, there
must be an appointed place for every employee, which ensures a proper and fixed place/cabin for each employee.
11. Equity: According to this principle, there should not be any discrimination amongst employees based on
religion, caste, language, or nationality.
12. Stability of Personnel: Fayol said that employees should be kept in their position for a reasonable time to
show stability creates a sense of belonging, and workers are encouraged to improve their quality of work.
13. Initiative: Employees at all levels should be encouraged to take initiative in work.
14. Esprit De Corps: Management should take reasonable steps to develop a sense of belongingness and a feeling
of team spirit amongst employees.
Classical Approach: Bureaucratic Management
• Max Weber (1864–1920) was a German sociologist who studied how
organizations could be more effective.
• He proposed bureaucracy as the ideal type (or "pure form") of
organizational structure.
• There are 6 Key Features of Bureaucracy according to Weber
Classical Approach: Bureaucratic Management
MODERN MANAGEMENT
APPROACH
Modern Management Approach
• integrates human, technological, and environmental factors into the practice of
management.
• Unlike earlier theories that focused on efficiency and hierarchy
• Modern management views organizations as dynamic systems that require
adaptability, innovation, and flexibility to succeed in an ever-changing
environment.
• Systems Theory; Contingency Theory; TQM; Behavioral Science Approach
 Total Quality Behavioral
Systems Theory Contingency Theory Management (TQM) Science Approach
• Views organizations as • Advocates that management • Focuses on continuous • Places emphasis on
open systems that practices should be improvement, customer human behavior,
interact with their contingent on the specific satisfaction, and employee motivation, and
environment. circumstances of an involvement in the interpersonal
organization. decision-making process. relationships.
• This approach
emphasizes that all parts • Managers must be flexible • TQM ensures that quality • This approach draws
(e.g., HR, operations, and adjust strategies based on is maintained at every on psychology,
logistics, IT, finance) of situational variables. stage of the production sociology, and
the organization are and service delivery anthropology to
• "There is no one best way to
interconnected, and a process. improve management
manage. The most effective
change in one part practices.
management style or
affects the entire system.
organizational structure
depends on the internal and
external environment."
Hawthorne Studies
• Elton Mayo, a psychologist, conducted a series of
experiments between 1924 and 1932 at the Western
Electric Company’s Hawthorne Works in Chicago. The
goal was initially to study how different working
conditions (such as lighting, work hours, and rest
breaks) affected employee productivity. However, as the
studies progressed, they revealed much deeper insights
into human behavior at work, particularly the social and
psychological aspects that influence motivation and
productivity.
The Phases of the Hawthorne Studies
1. The Illumination Studies (1924-1927)
• Objective: To test whether changes in lighting conditions
(either increasing or decreasing light levels) would affect
workers' output.
• Method: The researchers altered the lighting levels in the
work areas for different groups of workers and measured
their productivity.
• Findings: The results were surprising. Productivity
increased in both the experimental group (with improved
lighting) and the control group (with dimmed lighting). This
suggested that physical conditions (like lighting) were not
the sole determinants of productivity.
• Conclusion: The researchers speculated that the workers
were reacting to being observed, which led them to put in
more effort. This was the beginning of the concept known as
the Hawthorne Effect—the idea that people improve their
performance when they know they are being watched or
studied.
The Phases of the Hawthorne Studies
2. The Relay Assembly Test Room Studies (1927-1932)
• Objective: To investigate whether changes in working conditions,
such as rest periods, work hours, and pay incentives, would influence
the productivity of workers.
• Method: A small group of women working in a relay assembly
room (assembling telephone equipment) were studied. Their
working conditions were modified in various ways: Rest periods
were altered (increased and decreased).
• Work hours were adjusted.
• Pay incentives were offered.
• The women were encouraged to socialize with the
researchers and provide feedback on the changes.
• Findings: Productivity increased, not because of the changes in
physical conditions (such as the longer rest periods or shorter
work hours), but because the workers felt they were being
valued and recognized.
• Conclusion: The social environment and the sense of being part
of a group and being cared for were stronger motivators than
simply monetary incentives or improved working conditions.
The Phases of the Hawthorne Studies
3. The Bank Wiring Observation Room Studies (1931-1932)
• Objective: To study a group of male workers who were assembling telephone equipment, and investigate how they were influenced by work
conditions, incentives, and group behavior.
• Method: The researchers observed a group of workers in a bank-wiring room where the work was more routine and task-oriented. The workers
were paid based on the number of pieces they produced (piece-rate system).
• The researchers altered the incentive system by offering group bonuses for high output.
• They also monitored informal interactions among the workers, paying particular attention to how they influenced each other's work
behavior.
• Findings:
• The workers had a tendency to form informal social groups with their own set of norms and expectations. These informal groups
significantly influenced the individual’s productivity.
• Even though higher pay incentives were offered, the group maintained a steady, moderate pace of work. They avoided being too
productive because the group had a social norm of not over-performing, which could make others look bad.
• The researchers realized that peer pressure and group dynamics played a key role in workers' output.
• Conclusion: The study highlighted that individual behavior was strongly influenced by group norms and social interactions. Productivity was
not just about individual incentives but was shaped by how workers interacted with each other and how they felt within their social group.
The Phases of the Hawthorne Studies
4. Mass interview Programme (1925-1932)
• Objective: To understand the attitudes and feelings of workers, especially regarding their work environment, relationships with
colleagues, and views on management. The researchers wanted to investigate whether workers’ satisfaction or dissatisfaction with
their jobs had an impact on productivity.

• Method: The researchers employed open-ended questions about Work Conditions Work Relationships allowing workers to express
their feelings without constraints.

• Findings:
• Social and Emotional Needs: Workers were motivated by factors like recognition, social relationships, and a sense of
belonging, not just monetary rewards or work conditions.
• Supervisor-Worker Relations: Positive relationships with supervisors were crucial for job satisfaction and motivation.
• Group Cohesion: Informal social groups and camaraderie among workers influenced their behavior and productivity.
• Hawthorne Effect: Workers’ productivity improved simply because they felt valued and were being observed.

• Conclusion: The program helped shift management thinking toward a more human-centered approach, highlighting the
importance of emotional well-being and interpersonal relationships in motivating workers.
Types of managers
1. Top-level Managers: Top-level managers are 2. Middle-level Managers: Middle-level managers act as a 3. First-line Managers: First-line managers are directly
responsible for setting the overall direction and bridge between top-level and first-line managers. They responsible for overseeing the day-to-day activities of non-
strategy of the organization. They focus on long-term implement the strategies and policies set by top management managerial employees. They manage the operations within a
planning and decisions that impact the entire and oversee the operations of first-line managers. specific area and ensure that tasks are completed efficiently and
company. effectively.
Responsibilities:
Responsibilities: Responsibilities:
• Implement organizational strategies at the
1. Develop and communicate the organization’s departmental or divisional level. • Supervise and direct the work of employees.
vision, mission, and strategic goals.
2. Make decisions that affect the entire • Supervise first-line managers and ensure their • Implement work schedules and assign tasks to
organization (e.g., mergers, acquisitions, alignment with the organization's goals. ensure productivity.
entering new markets). • Monitor performance and provide feedback to • Provide training, coaching, and performance
3. Allocate resources across departments. improve efficiency. evaluations for staff.
4. Build and maintain relationships with • Develop departmental budgets and resource • Address employee concerns and resolve conflicts.
stakeholders, investors, and the board of allocation plans.
directors. • Ensure safety, quality standards, and operational
5. Ensure the organization is compliant with • Facilitate communication between top management processes are followed.
laws and regulations. and lower-level employees.
Difference Between Management and Administration
Basis Management Administration Applicability It is applicable to business It is applicable to non-
concerns i.e. profit-making business concerns i.e. clubs,
Meaning Management is an art of getting things It is concerned with formulation of
organization. schools, hospitals etc.
done through others by directing their broad objectives, plans & policies.
efforts towards achievement of pre-
determined goals.

Influence The management decisions The administration is

Nature Management is an executing function. Administration is a decision-making are influenced by the influenced by public opinion,
function. values, opinions, beliefs & govt. policies, religious
decisions of the managers. organizations, customs etc.
Process Management decides who should & how Administration decides what is to be
should he do it. done & when it is to be done.

Function Management is a doing function because Administration is a thinking function

managers get work done under their because plans & policies are determined Status Management constitutes the Administration represents
supervision. under it. employees of the owners of the enterprise who
organization who are paid earn return on their capital
remuneration (in the form invested & profits in the form
Skills Technical and Human skills Conceptual and Human skills of salaries & wages). of dividend.

Level Middle & lower-level function Top level function

FUNCTIONS OF
MANAGEMENT
 PLANNING
• “Planning is the continuous process of making present
entrepreneurial decisions systematically and
• with best possible knowledge of their futurity,
• organizing systematically the efforts needed to carry out these
decisions and
• measuring the results of these decisions against the expectations
through organized and systematic feedback”.
 PLANNING
• Planning is both forward- and backward-looking exercise.
• An effective planning program incorporates the effect of both external as
well as internal factors.
❑There are multiple types of plans:
▪ Mission or purpose
▪ Objectives or goals
▪ Strategies
▪ Policies
▪ Procedures
▪ Rules
▪ Programs
▪ Budget
STEPS IN PLANNING
1. Setting Objectives: Define clear, measurable, and achievable goals.
2. Developing Premises: Identify assumptions and forecast future conditions
3. Identifying Alternatives: List all possible courses of action that can help
achieve the objectives.
4. Evaluating Alternatives: Analyze the pros and cons of each alternative in
terms of feasibility, cost, risk, and impact.
5. Selecting the Best Alternative: Choose plan that offers the best chance of
achieving goals with minimal risk.
6. Formulating Supporting Plans: Develop sub-plans (e.g., HR plan, financial
plan, marketing plan) to support the main plan
7. Implementation of the Plan: Assign tasks, allocate resources, and initiate
action according to the chosen plan
 Management by Objectives (MBO)
• MBO (coined by Peter Drucker) is a strategic
approach to increasing company performance by
aligning company and team objectives.
• MBO uses objective standards agreed on by
management and team members to measure
team member and company performance.
❑5 step process:
1. Define organization objectives using a business
goals template.
2. Set SMART (specific, measurable, acceptable,
realistic, time-bound) goals for employees.
3. Measure performance using business success
metrics and OKRs.
4. Evaluate team member progress by setting up
performance appraisals.
5. The last step in the MBO system is rewarding
the team for their achievements through
intrinsic or extrinsic rewards.
ORGANIZING
Organizing function of Management
• Organizing is the function of management which follows planning.
• It is a function in which the synchronization and combination of
human, physical and financial resources takes place.
• According to Chester Barnard, “Organizing is a function by which the
concern is able to define the role positions, the jobs related and the
co-ordination between authority and responsibility”.
Steps in Organizing function
1. Identification of activities
2. Departmentally organizing the activities
3. Delegation of duties
4. Coordination of authority and responsibility
TYPES OF ORGANIZATION STRUCTURES
1. Line organization
• scalar organization
• a clear and direct chain of command
• a clear line of responsibility and
accountability
• Decision-making is typically centralized
at the top
• suitable for small organizations
• May lead to delays in decision-making as
all decisions must pass through the
hierarchy
TYPES OF ORGANIZATION
2. Line and staff organization
• line positions focus on core
operations
• staff positions provide specialized
support and guidance, offer
expertise and advice to line
managers; they do not have the
power of command over
subordinates in other departments
• This structure enables better
decision-making and problem-
solving
TYPES OF ORGANIZATION
3. Functional organization
• departments are organized based
on specialized functions or tasks
(Eg. Finance, Marketing,)
• Each department headed by a
functional manager who has
expertise.
• allows for the efficient utilization of
specialized skills and knowledge
• May create silos
 DEFINING STAFFING
• According to Koontz and O'Donnell
“Staffing is the executive function where the recruitment, selection, compensating,
training, promotion and retirement of subordinate managers takes place".
• Staffing is an action of hiring the personnel by reviewing their competence,
knowledge and providing them particular job roles accordingly.
• It includes the procedure of fulfilling the available position of the correct personnel
at the correct job, at correct time.
 PROCESS OF STAFFING
1. Estimating Manpower Requirements: Preliminary Screening
Ascertaining manpower needs with regard to
the number and the type of people required Selection Test
2. Recruitment & Selection
➢ Recruitment: prompting maximum number of Employment Interview
candidates to apply in the organization for
vacant position of job. Scrutinizing the references and
❑Internal recruitment through transfer or background
promotion
• Advantages- low cost, quick, establishes loyalty, Selection Decision
easier onboarding
❑External recruitment through direct recruitment, Medical examination
employment exchange, campus placement etc.
• Advantages- Diversity, talented experts, “fresh Job Offer
wind”, temp project recruitment
Contract of
➢ Selection: select the most suitable candidate for Employment
the job
 PROCESS OF STAFFING
3. Remuneration: compensation provided monetarily to the employees for their work performances- as
per nature of job
4. Orientation: appointed candidates are made familiar to the work environment through the orientation
programme
5. Training & Development: imparting and developing specific skills for a particular purpose.
6. Performance Evaluation: a systematic evaluation of personnel by superiors to rank the employees to
ascertain their eligibility for promotions.
7. Promotion & Transfers:
❑Promotion- appointment of a member to higher rank; involves duties and responsibilities - more
complex - a higher pay grade and salary
❑Transfer- appointment of a member to another position within the same department or elsewhere in the
organization; involving duties and responsibilities of a comparable nature and having a similar pay
grade and salary.
DIRECTING
INTRODUCTION
• Directing is defined as a procedure of guiding, counselling, instructing, leading,
inspiring and overseeing people to the achievement of the goals of organization.
• It is an ongoing process of manager which continues throughout the organizational
life
• The true success of direction depends upon the proper motivation of workers and
supervision of their efforts. It requires effective communication system and
competent leadership.
ELEMENTS OF DIRECTING
• Supervision, Communication, Motivation, Leadership

• Supervision: function performed by a

supervisor- supervisor has a chief role in an
organization because he/she is directly in
contact with the workers whereas the other
managers they have no direct contact with
the workers of bottom level.
• Motivation: Maslow’s Need hierarchy.
 ELEMENTS OF DIRECTING
• Leadership: leadership is the
potential of an individual to
nurture good interpersonal
relations with his/her followers
and stimulate or motivate the
followers to contribute for
accomplishing organizational
objectives.
• Communication:
Communication is defined as an
exchange of feelings, ideas, facts
among people in order to build a
common understanding.
CONTROLLING
DEFINING CONTROLLING
• Controlling may be defined as the process of ensuring that activities are producing the
desired results. It involves guiding and regulating operations towards some pre-
determined goal.
• Controlling measures the deviation of actual performance from the standard
performance, discovers the causes of such deviations and helps in taking corrective
actions.
• According to Brech
• “Controlling is a systematic exercise which is called as a process of checking actual
performance against the standards or plans with a view to ensure adequate progress
and also recording such experience as is gained as a contribution to possible future
needs.”
METHODS OF CONTROL
❑FINANCIAL CONTROLS: use financial statements, financial ratios to monitor the
financial resources and activities
❑BUDGET CONTROLS: Budgets help managers plan their finances; how much an
organization expects to spend (expenses) and earn (revenues) over a time period
❑MARKETING CONTROLS: Market research and test marketing help monitor progress
toward customer satisfaction with products and services, prices, and delivery.
❑HUMAN RESOURCE CONTROLS: help managers regulate the quality of newly hired
personnel AND monitor current employees' developments and daily performances.
Eg. performance appraisals, disciplinary programs, etc
❑IT CONTROLS: Controlling the access to computer databases; monitor each
employee's computer usage