Module- 1

MTCSR
Module 1- Syllabus
Management, Managers and Workplace: Meaning, definition and
nature, evolution of management- management thoughts- why study
management, early management- Classical approach- Scientific
management- General administrative theory- Behavioural approach-
Quantitative approach, Management gurus- India- C K Prahalad,
Narayana Murthy, Ratan Tata, Shiv Khera, Manager- Managerial
challenges- Skills required for a manager, managerial roles.
Management- Meaning
• Management means managing an activity.
• The word management comes from the Italian word “ Maneggiare”
which means “to handle.”
• In the context of an organization, Management is about getting things
done through others by guiding and directing efforts in a structured
way.
• It is the process of planning, organizing, leading and controlling
resources such as people, finances and materials within an
organization to achieve specific goals effectively and efficiently.
• It involves decision making, problem solving and coordinating
activities to ensure that the organizations objectives are met.
Definition of Management

1. “ Management is the art of getting things done through and with

people in formally organized groups.”
- Harold Koontz & Cyril O'Donnell

2. “ To manage is to forecast and to plan, to organize, to command to

coordinate and to control.”
- Henry Fayol
Nature of Management
1. Universal Process:
• Management is a universal process that is essential for achieving
organizational goals. It is applicable to all types of organizations,
including businesses, govt agencies, non- profit and educational
institutions.
2. Goal Oriented:
• The primary purpose of management is to achieve specific
organizational goals and objectives. Managers coordinate and direct
the efforts of individuals and groups towards achieving common
goals.
3. Integrative Force:
• Management integrates the efforts of people, capital and technology
to achieve organizational objectives. It brings together resources in a
coordinated manner to maximize efficiency and effectiveness.
4. Dynamic Function:
• Management is a dynamic and continuous process. It involves
planning, organizing, leading and controlling activities to adapt to
changing internal and external environments.
5. Multidisciplinary:
• Management draws principles and concepts from various disciplines
such as economics, sociology, psychology, engineering and others. It is
a multidisciplinary field that incorporates insights from different
areas.
6. Continuous Process:
• Management is not a one-time activity but a continuous process. It
involves a series of interrelated and interdependent functions that are
performed in a sequential and repetitive manner.
 Management as Art, Science and Profession
Management as Art
• Art is defined as the use of skills to bring a desired result.
• Art has the following features:
 Practical knowledge
 Personalized application of knowledge
 Improvement through continuous practice
 Emphasis on creativity
Management as Science
• Science is a systematized body of knowledge generated through
critical evaluation and experimental study.
• Science has the following features:
 Systematized body of knowledge: Its principles are based on cause
and effect relationship.
 Principles based on experimentation
 Universal application
• In conclusion management is both science and art.
• A balance between the two is needed.
Management as Profession
• Any type of work that needs special training or skill, often one that is
respected because it involves a high level of education.
• Profession has the following features:
 Existence of knowledge
 Formal acquisition of knowledge
 Professional association
 Ethical codes
 Service motive
 Evolution of Management

 Management theories (school of management thought) are theoretical

framework for the study of management.
 The practice of management as old as human race but its theories and
conceptual framework are of recent origin.
 There are 3 major classification for Management theories/approaches:
1. Classical Management approach
2. Neo-classical Management approach
3. Modern Management approach
1. Classical Management approach (1880-1930) focuses on execution
and maximizing production.
2. Neo-classical Management approach (1930-1950) focuses
increasingly on human elements and viewing workplace as a social
environment.
3. Modern Management approach (1950 onwards) builds on the
previous two theories, while incorporating modern scientific
methods and system thinking
 1. Classical approach
 The classical approach to management was the result of the primary
effort of management thinkers to develop a body of management
thought.
 The classical school is occasionally called as the traditional school of
management.
 It was introduced in the late 19th century during the Industrial
Revolution.
 The objective of classical management is to reduce cost and achieve
result in more efficient ways.
 It was not concerned with the employee satisfaction or anything from
the view point of employees.
 It was too mechanistic.
 The classical theories of management can be divided into mainly 3
distinct areas.
A. Scientific Management approach
B. Administrative Management approach
C. Bureaucracy Management approach
A. Scientific Management approach
• Scientific management is the result of applying scientific knowledge
and scientific methods to the various aspects of management and
various problems that arise from them.
• Scientific management introduced a logical, systematic approach to
work and management of work.
• Introduction of scientific management improved productivity by the
use of standardized tools, equipment and methods, improves quality
of product by research, quality control and inspection and reduces
cost of production by cost control techniques.
• It places right man on the right job by proper selection and training.
• The scientific management grew from works of 5 people:
1. F.W Taylor
2. Henry Gantt
3. Harrington Emerson
4. Frank and Lillian Gilberth
1. Contributions of F.W Taylor(1856-1915)
• Most important contributor to scientific management.
• Known as the ‘father of scientific management’.
• According to Taylor,
“ Management is an art of knowing exactly what you want your
men to do and seeing that they do it in the best and cheapest way.”
Principles of scientific management
 Replacing rule of thumb with science: The use of scientific method
denotes precision in determining any aspect of work, rule of thumb
emphasizes estimation. Since exactness of various aspects of work like
day’s fair work, standardization in work, differential piece rate for
payment etc. is the basis core of scientific management, and it is
essential that all these are measured precisely and should not be based
on prior estimates.
 Harmony not discord: Taylor emphasized that attempts should be
made to obtain harmony in group action rather than discord. Group
harmony suggests that there should be mutual give and take situation
and proper understanding so that a group as a whole contributes to
the maximum.
 Co-operation not individualism: Scientific management is based on
mutual confidence, cooperation and goodwill. Cooperation between
management and workers can be developed through mutual
understanding and change in thinking.
 Maximum output in place of restricted output: It involves continuous
increase in production and productivity instead of restricted
production either by management or by workers. Taylor hated
inefficiency and deliberate curtailment of production. His concern was
with the large size of the cake. In his opinion there is hardly any worse
crime to mind than deliberately restricting output. Therefore,
He advised management and workers to turn their attention towards
increasing the size of the surplus until the size of surplus become so
large that it is necessary to quarrel over how it shall be divided.
 Development of each individual to his greatest efficiency and
prosperity: In scientific management, all workers should be developed
to the fullest extent possible for their own and for the company’s
highest prosperity. Development of workers requires their scientific
selection and providing them training at the workplace.
 Elements/ Tools/Techniques of Scientific management
1. Scientific study of the task (work study):
Taylor advocated scientific study of the task to find the best work
method rather than relying on traditional methods handed over from one
worker to another. Work study includes the following;
 Methods study:
Method study is the systematic recording and critical examination of
existing and proposed ways of doing work, as a means of developing and
applying easier and more effective methods and reducing cost. It is concerned
with the reduction of the work content and establishing the one best way of
doing the job.
 Motion Study:
Part of method study is motion study. It is a study of the movement of
an operator in performing an operation with the purpose of eliminating
useless motions.
 Time Study (Work measurement):
To determine the proper time for performing the operation. Such
study may be conducted after the motion study. Both time study and
motion study help in determining the best method of doing a job and the
standard time allowed for it.
 Fatigue study:
If a standard task is set without providing measures to eliminate
fatigue, it may either be beyond the workers or the workers may overstrain
themselves to attain it. Therefore, it is necessary to regulate the working
hours and provide rest pauses at scientifically determined intervals.
 Differential piece rate system:
Under this plan, the standard task is fixed by the help of time and
motion studies, and two-piece rates are set up for each job-a high piece
rate for efficient workers and a low piece rate for less efficient workers.
High piece rate is given to those who produce equal or more than the
standard task. Lower rate is meant for those who fail to reach the
standard.
2. Scientific task Planning
Having set the task which an average worker must strive to
perform to get wages at the higher piece rate, necessary steps have to
be taken to plan the production thoroughly so that there is no bottle
neck and the work goes on systematically.
3. Selection and Training
Workers must be selected on scientific basis considering their
education, experience, skills, physical strength etc. Employees should
be offered work for which they are physically and technically most
suitable. Apart from selection proper emphasis should be given on the
training of workers which makes them more efficient and effective.
4. Standardization and Simplification:
Scientific management aims at providing for a pre-determined
standard for everything. Standardization leads to reduction in the
number of varieties and converts the entire process of production into
a routine to increase the efficiency of workers and reduce cost.
a) Standard product
b) Standard material
c) Standard tools and equipment
d) Standardized working conditions
5. Functional foremanship :
According to Taylor, one supervisor cannot be an expert in all
aspects of work supervision. In system of Functional Foremanship in
which eight supervisors supervise a worker’s job.
1. Route Clerk
2. Instruction card clerk
3. Time and cost clerk
4. Shop disciplinarian
5. Gang boss
6. Speed boss
7. Repair boss
8. Inspector
6. Mental Revolution:
It involves a change in the attitude of Workers and Management
towards each other. Both should realize the importance of mutual
cooperation. Taylor feels that in its absence, no principle of scientific
management can be applied.
2. Contributions of Henry L Gantt (1816-1919)
1. He improved upon Taylor’s differential piece rate system and brought
out his task and bonus plan. In this plan the worker received a day’s
wage even if he doesn’t complete the task. But if he completed the task
in less than the prescribed time, he received a bonus.
2. Developed the daily balance chart, now known as Gantt’s chart. The
chart shows the work progress against time.
3. Industrial Efficiency: According to Gantt, industrial efficiency can only
be produced by the application of scientific analysis to all aspects of the
work in progress.
3. Contributions of Harrington Emerson(1851-1931)
1. He was the first to use the term ‘efficiency engineering’. According
to him, ‘efficiency means that the right thing is done in the right
manner, by the right man, at the right place in the right time’.
2. Emerson efficiency plan: under this plan, wages according to time is
guaranteed. Efficient workers are paid bonus.
4. Contributions of Frank Gilbreth(1868-1924) and Lillian
Gilbreth(1878-1972)
1. Motion study
2. Fatigue study
3. Humanistic approach
Benefits of scientific management
1. Increased Efficiency: Scientific management focuses on optimizing work
processes and improving productivity through systematic analysis,
leading to increased efficiency in production.
2. Improved Work Methods: By using time-and-motion studies and
standardizing work practices, it identifies the best ways to perform tasks,
reducing waste and errors.
3. Better Use of Resources: It helps in effective utilization of both human
and material resources by defining clear work processes and
responsibilities.
4. Higher Wages: Workers can earn more through performance-based
incentives, which are often part of the system to motivate higher output.
5. Enhanced Worker Training: Scientific management promotes training
and development of workers to perform their jobs more effectively,
reducing inefficiency caused by unskilled labor.
Weaknesses of scientific management
1. Dehumanization of Workers: It can treat workers as mere machines,
focusing more on productivity than on their well-being, leading to
dissatisfaction and alienation.
2. Resistance to Change: Workers and managers may resist the changes
imposed by scientific management, as it can require significant alterations in
work processes.
3. Limited Creativity and Initiative: Standardization of tasks can stifle creativity
and innovation, as workers are often discouraged from deviating from
prescribed methods.
4. High Initial Costs: Implementing scientific management requires investments
in studies, training, and reorganizing work processes, which can be costly.
5. Management-Labor Conflicts: The increased focus on efficiency and control
may lead to conflicts between management and labor, particularly if
workers feel exploited or underappreciated.
B. Administrative Management approach
• The real father of modern administrative management theory is the
French industrialist Henry Fayol.
• His contributions are generally termed as operational management or
administrative management.
• Fayol looked at problems of managing an organization from top
management point of view.
• He has used the term ‘administration’ instead of management.
• He contributed 14 principles for management.
Fayol’s 14 Principles of Management
1. Division of work
2. Authority and Responsibility
3. Discipline
4. Unity of command
5. Unity of direction
6. Subordination of individual interest to general interest
7. Remuneration of personnel
8. Centralization
9. Scalar chain
10. Order
11. Equity
12. Stability of tenure
13. Initiative
14. Espirit de corps
C. Bureaucracy Management approach
• Bureau is a French word meaning desk, or by extension, an office; thus
‘Bureaucracy’ is rule through a desk or office.
• Bureaucratic theory was developed by a German sociologist and
political economist Max Weber (1864- 1920).
• According to him bureaucracy is the most efficient form of organization.
• The organization has a well defined authority.
• It has clear rules and regulations which are strictly followed.
• Public sector companies with large no. of offices, such as postal
services, railway are considered examples of bureaucratic organizations.
• The strength of such a bureaucratic organization exists in its system of
set of rules, policies and a hierarchy of authority.
Features of Bureaucracy Management
1. Administrative class: Bureaucratic organizations generally have
administrative class responsible for maintaining coordinative
activities of the members. Main features of this class are as follows;
 People are paid and wholetime employees.
 They receive salary and other perquisites normally based on their
positions.
 They do not have any proprietary interest in the organization.
 They are selected for the purpose of employment based on their
competence.
2. Hierarchy: In bureaucratic organization, offices follow principle of
hierarchy, that is, each lower office is subject to control and supervise
by a higher office. Thus, no office left uncontrolled in the organization.
3. Division of work
4. Official rules: A basic and most emphasized feature of bureaucratic
organization is that administrative process is continuous and governed
by official rules.
5. Impersonal relationship: Relationship of individuals are governed
through the system of official authority and rules. Official positions are
free from personal involvement, emotions, sentiments, etc.
6. Official record: Bureaucratic organization is characterized by
maintenance of proper official records. The decisions and activities of
the organization are formally recorded preserved for future reference.
 2. Neo-classical Management approach
 The Neo-Classical approach to management emerged as a reaction to
the limitations of the Classical Management theories, which focused
primarily on efficiency, structure, and productivity without fully
addressing the human and social elements in organizations.
 Neo-Classical theorists emphasized the importance of people, their
behaviors, and their relationships within the work environment. This
approach, also known as the Human Relations Movement.
 Elton Mayo has been described as the founder of the human relations
movement
 The Neo-classical theories of management can be divided into mainly 2
distinct areas.
1. Hawthorne studies
2. Behavioural approach
1. Hawthorne studies
• Hawthorne studies were conducted by Elton Mayo.
• He is an Australian by birth, a psychologist by training.
• At the time of the Hawthorne studies, he was professor of industrial
research at the Harvard Graduate School of Business Administration.
• Professor Elton Mayo (associated with the social research) conducted
research at the Hawthorne plant of the Western electric company in
Chicago between 1927 and 1932 known as Hawthorne Studies.
• Stages in Hawthorne studies include the following:
i. First Stage [1924-1927]-Illumination Experiments
ii. Second Stage [1927-1929]: Relay Assembly Test Room Experiment
iii. Third Stage [1928-1930]: Massive Interviewing Program
iv. Fourth Stage [1932]: Bank wiring observation room experiment
v. Final Stage [1936]: Personal Counselling
1. First Stage [1924-1927]-Illumination Experiments
• Conducted by the company’s own staff
• This stage was concerned with the effects of lighting on output.
• For these two groups of comparable performance were isolated from
the rest and located in separate parts of the plant.
• The output of both groups increased even when the lighting for the
experimental group was reduced to a very low level. They still
produced more and this shows clearly, presence of some factors other
than the impact of physical improvements at work.
2. Relay Assembly Test Room Experiment
• The objective was to make a more detailed study of the effects of
different physical conditions on productivity and no deliberate
intention to analyze social relationships or employee attitudes.
• Six women workers in the relay assembly section were separated
from the rest in a room of their own.
• During the experiments the effects of numerous changes in working
conditions were observed and this include varied rest time and lunch
time
• Most of the changes were discussed with the women before being
implemented.
• Productivity increased whether the conditions were made better or
worse.
3. Massive Interviewing Program
• This include implementing an interview program to know employee
attitudes towards working conditions, their supervision and their jobs.
• Conducted by selected supervisors initially on a half an hour’s
structured basis and eventually the interview pattern became
relatively unstructured and lasted for 90 minutes.
• The numbers interviewed reached over 20,000.
• It is clear from the response that relationship with people were an
important factor in the attitudes of employees.
• The results again confirmed the importance of informal relations,
social and psychological needs and their influence on the behaviour of
workers.
• The material gained used to improve several aspects of working
conditions and supervision.
4. Bank wiring observation room experiment
• Experiment is conducted to know work behavior.
• In this study 14 men on Bank wiring room were removed to a
separate observation room where apart from a few differences their
principal working conditions were the same as those in the main
wiring area.
• The aim was to observe a group working over a period of six months.
• The group was soon started developing its own rules and behavior
and started functioning in accordance with its own norms.
• The group protected its own sectional interests against the company
interests and the supervisors concerned were powerless to prevent
this situation.
• Production norms set by workers were lower than the officially
required production norms.
• The study revealed the existence of internal cliques in the group.
4. Personal Counselling
• Based on lessons learned from earlier studies focus was on employee
relations and done through counseling.
• The counselors encouraged employees to discuss their problems at work
and the results led to improvements in personal adjustments, employee
supervisor relations and employee management relations.
Positive side of Hawthorne studies
• Represented the first major attempt to undertake genuine social research.
• By this model of social man helps to further the humanization of work.
Negative side of Hawthorne studies
• Criticized for lack of scientific research.
• The research techniques and design were not scientific.
• Simple and isolated case studies