Management:

 Management is defined as the pursuit of organizational goals efficiently and effectively.

 More formally, management is defined as (1) the pursuit of organizational goals
efficiently and effectively by (2) integrating the work of people through (3) planning,
organizing, leading, and controlling the organization’s resources.
 Management is the process of planning, organizing, leading, and controlling an
organization’s resources (such as people, money, machinery, and materials) to achieve
specific goals efficiently and effectively.
 It involves coordinating and overseeing the work of others so that organizational
objectives can be met.
 At its core, management ensures that resources are used in a way that maximizes
productivity while minimizing costs.

Efficiency vs Effectiveness:
Efficiency: The means. Efficiency is the means of attaining the organization’s goals. To be
efficient means to use resources—people, money, raw materials, and the like—wisely and cost-
effectively.
Effectiveness: The ends. Effectiveness regards the organization’s ends, the goals. To be
effective means to achieve results, to make the right decisions, and to successfully carry them out
so that they achieve the organization’s goals.
Management functions: What a manager performs to achieve the stated goals of the
organization is known as the management process or also called management functions. The
functions are discussed below:
1. Planning: Planning is defined as setting goals and deciding how to achieve them. It involves
determining what needs to be done, who will do it, how it will be done, and by when. Planning
also involves forecasting future conditions and making decisions in advance to prepare for future
needs.
Suppose your university was established for the purpose of educating students, and its present
administrator, now must decide the best way to accomplish this. Which of several possible
degree programs should be offered? Should the campus be a residential or a commuter campus?
What sort of students should be recruited and admitted? What kind of faculty should be hired?
What kind of buildings and equipment are needed?
2. Organizing: Organizing is defined as arranging tasks, people, and other resources to
accomplish the work. It involves defining roles, responsibilities, and the structure of the
organization to ensure efficient functioning.
Administrator must determine the tasks to be done, by whom, and what the reporting hierarchy is
to be. Should the institution be organized into schools with departments, with department
chairpersons reporting to deans who in return report to vice presidents? Should the university
hire more full-time instructors than part-time instructors? Should English professors teach just
English literature or also composition, developmental English, and “first-year experience”
courses?
3. Leading: Leading is defined as motivating, directing, and otherwise influencing people to
work hard to achieve the organization’s goals. It is about creating an environment in which
employees are motivated to work toward the organization’s goals.
At your college, leadership begins, of course, with the vice chancellor. He is the one who must
inspire faculty, staff, students, alumni, wealthy donors, and residents of the surrounding
community to help realize the college’s goals. As you might imagine, these groups often have
different needs and wants, so an essential part of leadership is resolving conflicts.
4. Controlling: Controlling is defined as monitoring performance, comparing it with goals, and
taking corrective action as needed.
Is the university discovering that fewer students are majoring in nursing than they did five years
previously? Is the fault with a change in the job market? With the quality of instruction? With
the kinds of courses offered? Are the Nursing Department’s student recruitment efforts not going
well? Should the department’s budget be reduced? Under the management function of
controlling, university administrators must deal with these kinds of matters.

Figure : Management Functions

Organization:
 Organizations are hard to see. We see outcroppings, such as a tall building, a computer
workstation, or a friendly employee, but the whole organization is vague and abstract
and may be scattered among several locations, even around the world.
 We know organizations are there because they touch us every day. Indeed, they are so
common that we take them for granted.
 Most of us spend many of our waking hours working in an organization of one type or
another.
 Organization is the foundation upon which the whole structure of management is built.
 Organization is a mechanism or structure that enables living things to work effectively
together.
 Organizations are (1) social entities that (2) are goal-directed, (3) are designed as
deliberately structured and coordinated activity systems, and (4) are linked to the
external environment.
 An organization is not a building or a set of policies and procedures; organizations are
made up of people and their relationships with one another. An organization exists
when people interact with one another to perform essential functions that help attain
goals.
 An organization is a means to an end. We might think of an organization as a tool or
instrument used by owners and managers to accomplish a specific purpose. The
purpose will vary, but the central aspect of an organization is the coordination of
people and resources to collectively accomplish desired ends.
 Boundaries between departments, as well as those between organizations, are
becoming more flexible and diffuse as companies face the need to respond to changes
in the external environment more rapidly.
 An organization cannot exist without interacting with customers, suppliers,
competitors, and other elements of the external environment. Today, some companies
are even cooperating with their competitors, sharing information and technology to
their mutual advantage.
An organization is a structured arrangement of individuals or groups that work together to
achieve common goals. It operates as a social unit, coordinating activities through a system of
roles, responsibilities, and authority. Organizations can vary in size and complexity, ranging
from small businesses to large corporations or institutions like schools and governments.

Importance of Organizations:
It may seem hard to believe today, but organizations as we know them are relatively recent in
the history of humankind. Organizations are all around us and shape our lives in many ways.
There are several reasons organizations are important to you and to society.
 Figure: Importance of organization

1. Bring together resources to achieve desired goals: An organization is a means to an end.

Organizations bring together resources to accomplish specific goals. Example includes Padma
Bridge.
2. Produce goods and services efficiently: Organizations also produce goods and services
that customers want at competitive prices. Companies look for innovative ways to produce and
distribute desirable goods and services more efficiently. Two ways are through e-business and
through the use of digital manufacturing technologies.
3. Facilitate innovation: Organizations create a drive for innovation rather than a reliance on
standard products and outmoded approaches to management and organization design.
4. Use modern manufacturing and information technologies:
5. Adapt to and influence a radically changing environment: Organizations adapt to and
influence a rapidly changing environment. Consider Facebook, which continues to adapt and
evolve along with the evolving Internet and social media environment. Many organizations
have entire departments charged with monitoring the external environment and finding ways to
adapt to or influence that environment.
Accommodate challenges of diversity, ethics and coordination: Facebook’s management team
encourages a culture of fearless ness, helping the company win the top spot on Fast
Company’s 2010 list of the world’s 50 most innovative companies (it dropped to Number 3 in
2011, behind Apple and Twitter). Even during grim economic times, Facebook was increasing
its engineering team, investing in new ideas, and pushing people to take risks for the future.3
6. Create value for owners, customers and employees: Organizations create value for their
owners, customers, and employees. Managers analyze which parts of the operation create
value and which parts do not; a company can be profitable only when the value it creates is
greater than the cost of resources. For example, Vizio Inc., which seemed to come out of
nowhere to become the Number 1 seller of flat-panel HDTVs in the United States, creates
value by using existing LCD technology and developing an equity partnership with a contract
manufacturer rather than producing televisions in-house. By keeping its costs low, the
California-based company has been able to sell flat-panel HDTVs at about half the cost of
those sold by major electronics manufacturers.

Organizing/ The process of organization

Organizing is the process of defining roles, responsibilities, and the structure of the
organization to achieve objectives efficiently. This foundational function of management
involves determining what tasks need to be done, how they will be grouped, and who will
perform them.
Steps in the Organizing Process:
1. Identifying Activities
o Determine what work needs to be done to achieve the organization’s goals,
such as production, marketing, and finance activities.
2. Grouping Activities (Departmentalization)
o Organize similar activities into departments, allowing for specialization and
focused expertise.
3. Assigning Duties and Responsibilities
o Clearly define who is responsible for each task and assign authority for
decision-making where needed.
4. Delegation of Authority
o Authority is granted to individuals to make decisions, allocate resources, and
oversee tasks within their scope. Delegating authority ensures that decision-
making is efficient and that managers can focus on strategic issues while others
manage operational tasks.
5. Establishing Hierarchical Relationships
o Define the chain of command to clarify reporting relationships and establish
accountability.
6. Creating Coordination Mechanisms
o Develop methods for ensuring that all parts of the organization work together
seamlessly, such as regular team meetings or collaborative projects.

Theory of organization
 Organization theory may be defined as the study of structure, functioning and
performance of organizations, the behavior of groups and individuals working in
organizations.
 It helps managers understand, diagnose, and respond to emerging organizational needs
and problems.
 Organization theory gives us the tools to evaluate and understand how a huge, powerful
firm can die and a company can emerge almost overnight as a giant in the industry.
For example Nokia and Samsung.
 Organization theory helps us explain what happened in the past, as well as what may
happen in the future, so that we can manage organizations more effectively.

Organization theory can be broadly divided into Classical, Behavioral (Neo-Classical), and
Modern theories.
1. Classical Theory/Classical Management Thought
The Classical theory emerged during the late 19th and early 20th centuries as industrialization
increased the scale and complexity of organizations. Managers began seeking ways to improve
efficiency, productivity, and organizational structure. This theory focuses primarily on formal
structures and rational approaches to management.
Key management approaches are discussed below:

A. Scientific Management
Frederick Winslow Taylor is known as the father of Scientific Management. His approach
emphasized improving worker productivity by applying scientific methods to the analysis of
work. Taylor believed that management could be improved by studying tasks scientifically and
applying standardized methods. It emphasized the following key aspects:
 Systematic study of tasks
 Measurement and standardization of work
 Scientific selection and training of workers
 Clear division of responsibilities between workers and management

B. Administrative Management
Henri Fayol, a French industrialist, contributed to the development of Administrative
Management. Administrative Management focuses on the broader principles of managing an
organization rather than just improving efficiency at the operational level, as seen in Scientific
Management. This approach emphasizes the overall organization and its administrative
functions, with a focus on developing general principles that can be applied to any type of
organization to improve management effectiveness.

Fayol developed 14 principles of management. He also identified five management functions:

planning, organizing, commanding, coordinating, and controlling (which later became the P-
O-L-C framework: planning, organizing, leading, and controlling).

C. Bureaucratic Management
Max Weber, a German sociologist, developed the Bureaucratic Management model to address
inefficiencies and disorder in organizations. Weber's bureaucratic management model provides
a framework for organizing and managing complex organizations through clear rules, roles,
and authority structures.

Key Features of Bureaucratic Management includes: Division of Labor, Hierarchy of

Authority, Formal rules and procedures, Centralized decision-making.

2. Behavioral Management Thought/Theory

The Behavioral School of Management emerged in response to the perceived limitations of the
classical approach, particularly its neglect of human and social factors. This school emphasizes
the importance of understanding human behavior in organizations, including motivation, group
dynamics, and leadership. The behavioral approach is also called the Human Relations
Movement. Key management approaches are discussed below:
A. Hawthorne Studies
 Elton Mayo and his colleagues conducted the famous Hawthorne Studies in the 1920s
 and 1930s at the Western Electric Company. These studies demonstrated that workers'
productivity increased when they felt valued and had positive social relationships at
work, even when physical working conditions remained unchanged.
 This finding led to the realization that social factors, group dynamics, and human
relations significantly affect organizational performance. The approach highlights that
workers are not just motivated by money but also by social needs and job satisfaction.

B. Human Relations Movement

The Human Relations Movement, which developed from the Hawthorne Studies, argued that
managers should focus on improving employee relationships, job satisfaction, and motivation
rather than just concentrating on task efficiency. Key contributors include Elton Mayo, Chester
Barnard, and Mary Parker Follett.

C. Maslow’s Hierarchy of Needs

 Abraham Maslow introduced the Hierarchy of Needs, which suggested that employees
are motivated by a range of needs, starting from basic physiological needs to higher-
level psychological needs like self-esteem and self-actualization.
 According to Maslow, when managers understand these needs and address them, they
can motivate workers to higher levels of performance and satisfaction.

D. McGregor’s Theory X and Theory Y

 Douglas McGregor introduced Theory X and Theory Y to explain contrasting
managerial views of workers.
 Theory X assumes that workers are inherently lazy and need strict supervision and
control.
 Theory Y assumes that workers are motivated, capable of self-direction, and enjoy their
work when given the right conditions.
 These contrasting views of human nature have significant implications for leadership
style and organizational culture.

E. Herzberg’s Two-Factor Theory

 Frederick Herzberg developed the Two-Factor Theory, which distinguishes between:
o Hygiene factors (e.g., salary, job security, working conditions), which prevent
dissatisfaction but do not necessarily motivate employees.
o Motivators (e.g., achievement, recognition, responsibility), which create job
satisfaction and drive employees to perform better.
 This theory emphasizes the importance of creating work environments that not only
eliminate dissatisfaction but also actively promote job satisfaction and engagement.

3. Modern Management Thought

The Modern School of Management builds on both classical and behavioral approaches,
integrating new perspectives such as systems thinking, contingency theory, and the impact of
globalization and technology. This school of thought acknowledges the complexity and
dynamism of modern organizations. Key approaches includes:

A. Systems Theory
  The Systems Approach views organizations as open systems that interact with their
environments. It views an organization as a cohesive system made up of interrelated
parts or subsystems.
 All parts of the organization are interconnected. Changes in one area affect others,
creating a need for coordination.

B. Contingency Theory
 Contingency Theory suggests that there is no one-size-fits-all approach to
management. Instead, the most effective management practices depend on situational
factors, such as the external environment, organizational size, and technology.
 According to this theory, managers must analyze the specific context in which they
operate and adapt their strategies and structures accordingly.