ORGANIZATION AND MANAGEMENT

UNIT 1

Copyright © 2005 Houghton Mifflin Company. All rights reserved. PowerPoint Presentation by Charlie Cook.
 What is Management?
 It refers to the act of bringing together the
work activities to achieve the organizations
goals and objective.
 “TEAMWORK”
 Management involves coordinating and
overseeing the work activities of others so
that their activities are completed efficiently
and effectively.
 Basic
Basic Purpose
Purpose of
of Management
Management

EFFICIENTLY
Using resources wisely and
in a cost-effective way
And

EFFECTIVELY
Making the right decisions and
successfully implementing them

Copyright © 2005 by Houghton Mifflin Company. All rights reserved. 1–3

  Efficiency = getting the most output from the
least amount of inputs

Efficiency
 “doing things right”
 concern with means(ways) of getting things
done
Efficiency and
Effectiveness

 Effectiveness = do those work activities that

will help the organization reach its goals
Effectiveness

 “doing the right things”

 concern with ends(result) of organizational
goal achievement
 Why Study Management?

 The universality of management

The reality that management is needed in all
types, sizes, level, areas of organizations.

 The reality of work

You will either manage or be managed in your
future career
 EVOLUTION OF
MANAGEMENT THEORIES

• Scientific Management Theory

• General Administrative Theory
• Organization Behavior Theory

Copyright © 2005 Houghton Mifflin Company. All rights reserved. PowerPoint Presentation by Charlie Cook.
 INDUSTRIAL REVOLUTION

• Came in when machineries were

introduced during the pre-twentieth
century. This resulted to mass
production and expansions of
factories.
 1. SCIENTIFIC MANAGEMENT THEORY
• Introduced by Frederick W. Taylor at the time were shortages in skilled
labor at the start of 20th century.
• Known as the FATHER OF SCIENTIFIC MANAGEMENT
• Taylor emphasized the importance of using “ONE BEST METHOD” in
creating a product.
• He also initiated the “DIFFERENTIAL RATE SYSTEM” wherein he
encourages the owner to increase the wages of workers who are
considered productive.
LIMITATIONS OF SCIENTIFIC MANAGEMENT THEORY
• Poor performers were laid off
• More output same income
• Stress and tension among workers
• Unionism emerged
 1. SCIENTIFIC MANAGEMENT THEORY
• HENRY GANTT
• he abandoned the “DIFFERENTIAL RATE SYSTEM” because of
small incentive effect on production.
• -he initiated the CHARTING SYSTEM for production scheduling
known as GANTT CHART, reflecting the status of the stages of
production.’
 FRANK AND LILLIAN GILBRETH
-Made a device called “MICROCHRONOMETER” that is
intended to determine the hand and body motions of a
laborer primarily to determine the length of time spent
doing each motion
 2. GENERAL ADMINISTRATIVE THEORY

• This was developed by HENRI FAYOL to address the

issue as to how a complex company can be managed
efficiently and effectively.
• He developed 14 BASIC PRINCIPLES OF MANAGEMENT
• Known as the FATHER OF PRINCIPLES OF MANAGEMENT
FAYOL’S PRINCIPLES OF MANAGEMENT
Henri Fayol, the French industrialist is regarded as the real
father of modern management science. A brief description
of Fayol’s fourteen principles of management which he
described in his book ‘General and Industrial Management’
is given below:
• Division of Work
This principle implies that every employee should be assigned
only one type of work. It aims at the maximum production
with least efforts. It also helps in securing the maximum
efficiency.
• Authority and Responsibility
Authority is the right to give orders to the subordinates.
Responsibility means the duty which the subordinates is
expected to perform. Sufficient authority should be
delegated to a subordinate to enable him to discharge his
duties.
• Discipline
Discipline means getting obedience to rules and regulations
of an organization. In the absence of discipline the
organization cannot succeed. Discipline depends upon
effective leadership.
• Unity of Command
A subordinate should receive orders from one supervisor only.
If he gets orders from two or more officers at the same
time, he gets confused. He cannot discharge his duties
properly. Unity of command is related to functioning of
personnel.
• Unity of Direction
Unity of direction means that each group of persons having
same objects must have one head and one plan. It will
help in establishing the coordination and uniformity in the
activities. It is related to the functioning business as a
whole.
• Subordination of Individual Interests to General Interest
The interests of the organization must prevail upon the
personal interests of individuals. General interest must be given
more attention in comparison to the personal interests.
• Remuneration of Personnel
The remuneration of personnel must be fair and satisfactory.
The wage system must motivate the employees, to do better
and more and may ensure safety and security of the
employees. The wage system must be satisfactory to both
the employees and employer.
• Centralization
It means concentration of authority at one place or at one
level in the organization. On the other hand, decentralization means
dispersal of authority to the lower levels in the organization. A proper
balance between centralization and decentralization must be
maintained. Small firms have absolute centralization but in large
concerns, there is less degree of centralization.
• Scalar Chain
This principle is related to the arrangement of things and the placement of
people. This principle emphasizes that there must be a clear line of
authority right from the top management to the bottom. Orders of
management and feeling of subordinates must pass through the proper
channels of authority. Such types of channels must be short cut only
when it is essential to do so.
• Order
Order means everything should be in a proper arrangement.
There should be a place of everything and everything should
be in its place. Similarly, there should be right man in the right
place.

• Equity
Personnel must be treated with kindness and equity if loyalty is
expected of them. This principle does not mean that all the
employees of the organization are equal and must be treated
and paid equal.
Respect and fairness
• Stability of Tenure
This principle requires that there must be stability in the service of the
employees. The employees should not be transfer from one place to
another very quickly in business activities because it lower the progress
of activates. Management should remove the feelings of insecurity of
job from the minds of personnel. If the job of a person is not secure, he
will be on lookout for the job else where and his work will not be
satisfactory.

• Initiatives
The subordinates should be given an opportunity to take some initiatives in
making and executing the plans. The employees should be provided
proper incentives in planning an activities schedule for the enterprise.
• Esprit de Corps
This principle means the harmony and
understanding among the personnel.
The management and workers must
work together as a team for the
accomplishment of the targets of the
enterprise. This principle is based
upon two theories – “unity is strength”
and “unity of the staff is the foundation
of success in any organization”.
 GENERAL
GENERALADMINISTRATIVE
ADMINISTRATIVE THEORY
THEORY
MAX WEBER
• - A German theorist who introduced “BUREAUCRACY”, a
form of organization that emphasized division of labor,
the rules and regulation, and chain of command

MARY PARKER FOLLET

• Known as the MOTHER OF MODERN MANAGEMENT
• - she stressed the significance of belonging to a group as
a way for people to grow in the organization
 ORGANIZATIONAL
ORGANIZATIONAL BEHAVIOR
BEHAVIOR THEORY
THEORY

• A theory that refers to the behavior of people at work

• Contributors of this theory include CHESTER
BARNARD, MARY PARKER FOLLET, ROBERT
OWEN and HUGO MUNSTERBERG
• According to them, the best approach to work and
productivity is through UNDERSTANDING of the
worker..
• Therefore, managers are expected to have a good
human skills
 The
The Hawthorne
Hawthorne Studies
Studies (1927–1932)
(1927–1932)
• Conducted by Elton Mayo and associates at Western
Electric
–Illumination study—workplace lighting adjustments affected
both the control and the experimental groups of production
employees.
–The results were confusing and so they referred the matter to
a Harvard Professor- ELTON MAYO.
–Behavior and attitude are closely relevant.
–MAYO concluded that friendship and associations have the
strongest positive influence on productivity.
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 What
What is
is aa Manager?
Manager?
• Someone whose primary responsibility is to carry out the
management process.
• Is someone who works with and through other people by
coordinating their work activities in order to accomplish
goals.

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 Kinds
Kinds of
of Managers
Managers by
by Level
Level
• First-Line Managers
– Managers who supervise and coordinate the activities of operating employees.
• Middle Managers
– Largest group of managers in organizations
• Implement top management’s policies and plans.
• Supervise and coordinate lower-level managers’ activities.
– Administer the task of the supervisor and in his absence, activities of the operating
employees.
• Top Managers
– The relatively small group of executives who manage the organization’s overall goals,
strategy, and operating policies.
– They are in-charge for making company wide decisions and setting purposes, objectives
and plans that affect the whole firm.

Copyright © 2005 by Houghton Mifflin Company. All rights

reserved. 1–23
 Kinds
Kinds of
of Managers
Managers by
by Area
Area
• Marketing Managers
• Financial Managers/Accounting Managers
• Operations Managers
• Human Resource Managers
• Administrative Managers

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ROLES OF THE MANAGER
 INTERPERSONAL
INTERPERSONAL ROLE
ROLE
• Figurehead Role-managers perform traditional responsibilities
-Ethical guidelines and the principles of behavior employees are
to follow in their dealings with customers and suppliers.
• Leader Role- give direct commands and orders to
subordinates and make decisions.
• He motivates people to perform better
• Liaison Role-coordinate between different departments and
establish alliances between different organizations.
-Communicates with his head, peers and people outside his
organization
 INFORMATIONAL
INFORMATIONAL ROLE
ROLE

• Monitoring Role- evaluate the performance of managers in

different functions
• Seeks important information that will be relevant in decision
making
• Disseminator Role- managers convey the messages received
to the members of the organization
• communicate to employees the organization’s vision and
purpose
• Spokesperson Role- managers convey the information or
speaks on behalf of the whole organization to outsider.
 DECISIONAL
DECISIONAL ROLE
ROLE

• Entrepreneur Role- commit organization resources to develop

innovative goods and services.
-He initiates improvement changes
• Disturbance Handler Role- to take corrective action to deal
with unexpected problems facing the organization from the
external as well as internal environment. He reconciles and put
harmony in the workplace
• Resource Allocator Role- allocate existing resources among
different functions and departments
• Negotiator Role- work with suppliers, distributors and labor
unions
MANAGER SKILLS
 TECHNICAL SKILLS
• Refers to the expertise of the
person in his area of
specialization

For example: Engineer,

Accountant, Teacher, lawyer,
Doctor etc.
 HUMAN SKILLS
An individuals’ ability to cooperate with
other members of the organization
and work effectively in teams.
For example: Interpersonal
relationships, solving people’s
problem and acceptance of other
employees.
 CONCEPTUAL SKILLS
• Ability of an individual to analyze
complex situations and to
rationally process and interpret
available information.
• Refers to the capability of the
manager to conceptualize ideas
for the entire organization
For example: Idea generation and
analytical process of information.
 55 Functions
Functions of
of Management
Management
1. PLANNING – includes identifying the aims and purposes of the
business, its tactics and developing a plans to incorporate and
synchronize activities.
2. ORGANIZING – a function that ensures each job or position is not
duplicated and the corresponding authority is properly identified with the
responsibilities assigned to the person concerned
3. STAFFING – refers to the identifying the qualified potential employees.
4. DIRECTING/LEADING/MOTIVATING – refers to encouraging people to
work towards the attainment of the company’s goals and objectives.
5. CONTROLLING – involves evaluating the actual performance, compare
with the standards and take the action needed.

(POSDICON)
 QUESTIONS?
QUESTIONS?

THANK YOU!

Copyright © 2005 Houghton Mifflin Company. All rights reserved. PowerPoint Presentation by Charlie Cook.