ms unit 1
ms unit 1
Management science
Introduction:
Managing is the art of getting things done through people in formally organized groups.
Management can thus be defined ad the art or skill of directing human activities and physical
resources in the attainment of predetermined goals.
Management:
Definitions:
• According to Henry Fayola “To manage is to forecast and plan to organize to command,
to co-ordinate, and to control.
• According to Koontz and O'Donnell “Management is the art of directing and inspiring
people”
Thus Management refers to all those activities which are concerned with:
• Assembling men, money, materials, machine and methods for their accomplishment,
• Securing maximum satisfaction for both employer and employee and providing the
public with the best possible services.
Organizational Objectives:
Management as expected to work for the achievement of the objectives of the particular
organization in which it exists It includes:
• Reasonable profits
Personal Objectives:
• An organization consists of several persons. Who have their own objectives.
Social Objectives:
Management is not only a representative of the owners and worker but also responsible for the
various group outside the organization. It is expected to fulfill the objectives of the society which
are as follows:
Concept of Management:
A precise definition of management is not so simple because the term management is used in
variety of ways.
• Management as a discipline.
• Managements as process
Management as a discipline:
• Discipline refers to a field of study having well-defined concepts and principles when we
refer to management as a discipline we include in it the various relevant concept and
principles, the knowledge which aids in managing.
Management as a process:
• Decision-oriented
• People-oriented
• Function-oriented
Nature of management:
1. Multi disciplinary
4. Management as profession
Importance of Management:
2. Development of resources
3. To incorporate innovations.
Functions of management:
The classical analysis, which is the basis for management analysis, takes various functions which
managers at all of the organization perform in order to a organizational objectives.
The list of management function varies from author to author with the number of functions
varying from three to eight.
1. Planning,
2. Organizing,
3. Staffing,
4. Directing, and
5. Controlling
1. Planning:
“ what action”
In other words, planning ends with selection decision-making. Planning is also referred as the
process of determining the best course of action to achieve the given goals.
2. Organizing:
It is the process of dividing work convenient tasks or duties, grouping of such duties in the form
of positions, grouping of various positions into departments and section assigning duties to
individual positions, and delegating authority to each position so that the work is carried out as
planned.
Simply it refers to the process of grouping the related activities and assigning them to a manager
with authority to supervise it.
4.Staffing:
Ascertain how many positions are there in the organization and what level once this information
is available, the new task is to collect detailed such as what type of candidates are required for
each position, and accordingly, fill up these positions with the right people.
5.Directing:
After filling the positions in the organizations with the right kind of people, the next task is guide
and enable to achieve the common goals.
Directing is a process of issuing orders and instructions to guide and teach the subordinates the
proper methods of work and ensuring that they perform their jobs as planned
In other words, the manager has to perform the above functions while directing the members of
his group.
6. Controlling : It is the process of measuring current performance of the employee and whether
the given objectives are achieve or not.
It involves
The development of management thought could be traced to over 2000 years BC. However the
significant. Contributions that came up during the last three centuries could be grouped under
forbearing periods.
Significant of these contributions are Robert Owen was the first person who spend out the mostly
neglected critical issues relating to personal management.
He believed that workers performance can be influenced by a number of factors such as the shop
floor working conditions, working hours, housing facilities, training of workers provision of
canteen, rest places, kid treatments and so on.
In the field of business organizations, some stray contributions have come from J watt, Charles
Babbage and Henry town. All are concentrated on developing concepts relating to effective
utilization of resources at the shop floor level.
The concept of scientific management was introduced by F.W.Taylor in U.S.A. in the beginning
of 20th century.
“Scientific Management is concerned with knowing exactly what you want men to do and then
see in that they do it in the best and cheapest way.”
Taylor joined Midrale steel company in U.S.A. as a worker and later on became supervisor
during this period, he continued his studies and eventually completed his M.E. subsequently he
joined Bethlehem steel company.
At both these places, he carried experiments about how to increase the efficiency of people.
On basis of his experiments he published many papers and books and all his contributions were
compiled in his book “Scientific Management”
Scientific Management
1. Elements
2. Principles
Elements of scientific management:
1. Separation of planning and doing: according to F.W. Taylor, planning and doing real
work. He developed the concept of functional foremanship which eight persons are
involved, four persons, route clerk, instruction card clerk, time and cost clerk, and
disciplinarian are concerned with planning and the other four including speed boss,
inspector, maintenance foreman and gang boss are concerned with doing aspects.
2. Job analysis: Taylor opined that job to be performed should be scientifically studied to
find the best way to doing things. According to Gilbreth, job analysis
⮚ Method study: method study is concerned with issues related to methods to complete the
job, and its helps find the best methods to perform work.
⮚ Fatigue study and rest study: fatigue study and rest study are concerned with the study
of physical exertion that job requires and the need of rest after a particular time.
3. Standardisation: all the inputs like instruments and tool period of work working
conditions methods and so forth should be standardised to improve productivity. The
standards for these aspects should be fixed in advance through proper job analysis.
5. Financial incentives: Taylor suggested that workers should be given financial incentives
to encourage them to put maximum efforts and to achieve better performance.
1. Replacing rule of thumb with science: he advised replacing the rule of thumb with
scientific precision. Job aspects like day fair work standardisation time rate of payment
etc.
2. Harmony in group action: there should be mutual give and take situation based on
proper understanding. Harmony group action can maximise contribution.
Perhaps the real father of modern operational management theory is the French industrialist
Henry Fayola.
His contributions are generally termed as operational management or administration
management.
Fayola looked at the problems of Manager an organization from top management point of view.
Fayola found that activities of an individual organization could be divided into six groups.
1. Division of work:
Here, the work is divided among members of the group based on the
employees, skills and talents.
2. Authority:
It refers to the right or power gives orders. It must also be adequate supply by
responsibility.
3. Discipline:
Both the employer and employee should respect each other by observing the
rules.
4. Unity of command:
5. Unity of direction:
Where the objectives are similar the action plans also should be similar. In
other words, similar activities should be grouped together, placed under one manager and
these should be one action plan.
Group interests or goals of organization must prevail any time over the
individual interest or personal goals.
7.Remuneration:
The wages and salaries must be fair and bring out the best possible
commitment in the employee to achieve the organizational goals.
8. Centralization:
9. Scalar chain:
10. Order:
It means keeping the right man or right thing in the right place.
11. Equity:
Equity is the combination of justice and kindness. This implies that the
dealing with the employees should be so fair and so open that they will reinforce their
commitment to the organization. Be kind and fair to them.
13. Initiative:
With in the limits of authority and discipline, managers should encourage
their for taking initiative. Initiative increases zeal energy on the part of human beings.
14.Esprit- decorps:
The Hawthorne plant of the general election company, Chicago, was manufacturing
telephone system bell. It employed about 30,000 employees at the time of experiments.
There was a great deal of among the workers and productivity was not up to the mark. After
the utter failure of an conducted by efficiency experts, in 1924, the company asked for the
assistance from the National Academy of services its investigate the problem of low
productivity.
In order to investigate the real causes behind the phenomenon, a team was constitute led by
Elton Mayo (Psychologist) and 2 other
1. They conducting various researches in four phases with each phase attempting to answer
the question raised at the previous phase. The four phase were as follows:
2. Illumination experiments
Illumination Experiments:
Illumination experiments were undertaken to find out how varying levels of illumination.
The hypothesis was that with higher illumination, productivity would increase.
In the first series of experiments, a group workers was chosen and placed in two separate
groups, namely
The production in the experimental group only when the illumination was decreased to the
of moonlight.
Finally it was concluded that illumination have any effect on productivity but something was
inter with the productivity. Therefore cu phase of experiments was undertaken.
• The researchers setup a relay assembly room and two girls were chosen.
Each relay consisted number of Para which girls. Assembled into finished.
• Each change was introduced, the girls were consulted. The charges are:
• The incentive system was charged. The productivity increased compared to before.
• Break timings are increased one in morning session and other in evening session.
• The rest period was reduced to five minutes. But frequency was increased. Again the
productivity decreased due to frequent rest.
• The number of rest was reduced to two of ten minutes but in the morning coffee along
with sandwich in the evening snacks was provided. Productivity increased.
• Changes in working hours, and the girls were allowed to leave at 4:30 pm instead of
5:00pm. Productivity increased.
• An each change was introduced, absentees decreased, morale increased and less
supervision was required. The researchers decided to back to original position, that is no
rest, no benefits. Surprisingly productivity was increased.
• They developed girls attitude towards work and self discipline. The relationship between
During the course of experiments 20,000 interviews were conducted between 1928 to
determine employees attitudes towards compare supervision, insurance plans, promotion, and
wages. They are conducted directive and non directive
During the course of interviews, it was discovered that workers behavior was being
influenced by group behavior.
However, this conclusion was not satisfactory and therefore researchers decided conduct
another series of experiments.
This experiments were carried on between November 1931 and May 1932 with view
to the functioning of small group and its important on individual behavior. A group of four
male workers was employed in the back using room nine wise man, three solder man and two
inspectors.
The hypothesis was that in order to more, workers would produce more.
Concept of motivation:
The term motivation can be traced to the Latin word “mover”, which means “to move”
A motive is an inner state that energizes, activities, or moves (hence motivation) and that
directs behavior towards goals)
Theory of motivation:
• Theory X and Y
As the basic needs are satisfied or individual seeks to satisfy the higher needs if his
basic needs are not met, efforts to satisfy the higher needs should be postponed.
Abraham Maslow a famous social scientist has given a frame work that helps to explain the
strength of certain needs. According to him, there seems to be a hierarchy into which human
needs are arranged as follows.
Physiological needs:
Include need for food sleep, warmth, shelter, sex and others. These are basic needs and these
are not satisfied one does not need at the higher level.
Safety/security needs:
these cover security, protection, job security, safety and property, availability of food or
shelter continuing basis and soon.
organisations can influence these security needs either positively through pension insurance
plan etc. Or negativity by arousing fear of being fixed laid off or demoted.
Esteem needs:
Maslow states that one does not stop with affiliation or acceptance need one goes one step
beyond. One wants to respected and garlanded. To satisfy esteem needs people wants to feel
more prestigious, politically very strong and powerful or enjoy better status.
Self actualisation:
these needs indicate the strong desire to achieve something, particularly in view of the
potential one has
A research study was conducted by Frederick Herzberg and associates of case western
reserve university. This study consists of an intensive analysis of the experiences and fee of 200
engineers and accountants in Nero different companies in Pittsburgh area U.S .A on analysis the
information from the interview Herzberg concluded that there were two categories of needs
essentially independent of each other affecting behaviour in different ways. Finally he
developed two factor theory of motivational
Hygiene factors:
hygiene factor are the basic factor and requirements such as company policies procedures
salary security supervision working condition personal and social life and so on.’
if these are provided it may lead to happiness. But if these are not provided if may lead to
unhappiness. If these are provided people can work in the organisation in the normal way. But
if these are not provided if results in dissatisfactory.
Motivational factor:
these factors are capable of having positive effect on job satisfactory after resulting in a
increase in ones total output. Herzberg includes these are achievement recognition advancement
work it self possibility of growth and responsibility.
where these at least a few are taken care of it leads to satisfaction if not it may not result in
satisfaction
Mc gregor presented two sets of assumption managers make about the nature of their
employees. These sets are named as theory X (-ve) and Y(+ve).
The theory Y focuses a totally different of assumptions about the employees theory states that
some employees are consider work as natural.
❖ These employees are capable of directing and controlling performance of their own.
Expectancy theory:
according to this theory force = valance* expectance where force is due strength of a
person’s motivation valance is the strength of an individuals desire for a particular outcome and
expectancy is the profitability that a particular action will lead to a desire result if the
profitability is zero force will be zero this theory focuses on the relationship between efforts,
performance and reward
Motivation:
Motivation is the complex process forces starting and keeping a person at work in an
organization. Motivation is something that moves the person to action and continues the course
of action already initiated.
Decision making:
Before we go through the various aspect of decision making, it is essential to go that the concept
of decision making. The word “ “ which means a cutting away or a cutting of in a practical sense.
Decision making is a conscious human process involving both individual and social based upon
factual and value which concludes with a choice of one activity from among one or more
alternatives with the intention of moving some desired state of affairs.
Decision making is involved in every walk of life. It is relevant in organization as well s non-
organizational context.
1. Objectives specification: any activity in an organisation is goal directed. The first step in
decision making is to specify the objective of the decision. A decision maker must know
why the decision is to taken. It is advisable that manger has knowledge of organisational
objectives so that every decision can be taken in light of the objectives.
2. Problem identification: the decision process starts with identification of the problem a
problem is a felt need. Is the indication that there is something wrong with organisation it
shows the gap between the present condition and the desire condition. Every decision my
face a variety of problems such as decreasing sales reduced profits employees unrest
problem identification consist of two phases diagnosis and analysis.
diagnosis concerns with finding the problems in relation to objectives analysis is concerned
with analysis or studying every aspect of the problem identified *what is the problem? Where is
the problem? Who will take decision?
3. Search for alternatives: the third step involves finding solution for the problem every
problem can be solved in several ways. Here the decision maker searches for possible
solutions there are various sources for indentifying alternatives like past experience
practice followed by other research and analysis using creative techniques and so on.
6. Action : in this stage the decision taken is put into practice implementation of decision is
an integral part of the decision making process implementation requires the follow
actions, * communication with subordinates, getting acceptance of subordinates, seeking
cooperation of other departments.
7. Result : implementation of decision leads to results based on result one can easily say
whether the objectives are being achieved if result are satisfactory there is no need to take
further action. But when result deviate signification it is a serious concern and
appropriate follow up action need to be taken. Include measuring actual deviation
investigating causes responsible for the deviation and modifying objectives or decision or
both.
Each and every organization has to follow these several steps when they required take a decision.
Organizing:
Organizing is a process of
Determining detailed procedures and systems different problem areas such as coordination,
communication, decision-making, motivation and
Organization:
( A chief executive calls his staff for a meeting at a given time and when the staff meets, it is
called a formal organization)
on the other hand after meeting is called off when some staff stay back to discuss their personal
problems with the chief executive, it is said to be informal organization.
Basic concepts related to organization:
Organizational hierarchy:
The hierarchy in a business refers to the layers of management from the top management down
to managers.
The authority and responsibility should always be commensurate and co-existence with each
other.
Delegation of authority:
The process of transferring from the top to the lower levels in the organization is called
delegation of authority.
Line organization:
It is also called military organization. It is said to be the oldest and traditional type of
organization, which is widely even today. This is called line organization.
In this organization we have both the line and staff managers. Staff mangers support the
functions of the line mangers.
The staff managers are specially appointed to give advise, suggest, or assist the live managers in
their day to day matters.
Such advise is provided to lie manger by staff personal who are generally specialist in their
fields.
Taylor’s functional organization
• Time & cost clerk: identifies the time and cost for
• Specialization by functions
Committee organizations:
A committee is formed when two or more persons are appointed to work as a team to arrive at a
decision on the matters referred to it.
It is intended to utilize the knowledge, skills and experiences of all the concerned parties,
particular in large organizations, problem are two big to be handled by one single expert.
Vice chancellor
Matrix organization:
This is also called project organization combination of all relationships in the organization
vertical, horizontal, diagonal.
It mostly used in complex project it provides high degree operational freedom line and staff
mangers in performing the respective roles. The main objective of matrix organization is to
secure a higher degree of coordinating them what is possible from the organizational structure
such as line and
Principles of organization:
Principles of organization refers to the well-established and accepted general statement which
provides guidance to thinking and action in the organizing process.
The activities of an organization shall be divided into several small parts or jobs. Thereby
tasks are likely to be reported frequently so as to improve the efficiency of employees
through job specialization.
An individual worker repeatedly performing a specific job becomes an expert in that job.
Division of labor is thus considered necessary to increase the output of workers and
machines.
For example in a furniture manufacturing unit some workers shape the wooden pieces, some
smoothen the same, some fit together and some polish them. Hence division of work
increases the overall efficiency of the whole group.
This is also known as scalar . The principle states that in every organization there is an
unknown chain of superior-subordinate relations, which starts at the top management and
ends at the supervisory levels.
The chain of command links all the managerial positions from top to bottom.
It refers to the number of subordinate placed under a managers direct supervise and control.
The principle of span of control states that there is limit to the number of subordinates which a
manager can supervise and control. Early writers on management used to set a line of fie or six
subordinates as the ideal span of control. In practice the span of control varies with.
In general, the span is wider at higher level of management, and narrow at lower levels
Wide span:
• It reveals that the manager has under him 16 subordinate employees. Thus there is only
one level of management. The span of control is wide and results in only one level of
management.
Narrow span:
• It reveals that the manager, instead off directing supervising it subordinate employees,
has four positions assistant many under him.
• The principle of unity of command suggests that an employee should have one and only
one boss. Sue a relationship between a superior and his subordinate promotes loyalty,
discipline and a sense of personal responsibility in the subordinate.