Module 1,bangalore central university, mba, organization behavior, MOB,

1. MANAGEMENT AND
ORGANIZATION BEHAVIOUR
MODULE – 1
Dr. Jerry John

2. Module Content
• Definition of Management
• The Evolution of Management
• Functions of Management
• Planning and Decision Making
• Organizing and Staffing
• Controlling and Directing
Dr. Jerry@KCM

3. L e a r n i n g o u t c o m e s
• Describe the difference between managers and
operative employees.
• Explain what is meant by the term management.
• Differentiate between efficiency and
effectiveness.
• Describe the four primary processes of
management.
• Classify the three levels of managers and identify
the primary responsibility of each group.
Dr. Jerry@KCM

4. Why to Study Management?
• Management teaches you to understand how people
behave in organisations,
• The nature of power,
• Influence and leadership.
• Explore the issues facing individuals and organisations
in the workplace today.
• Study Management and work in-and-through
organisations
• Connect to the world
• Learn how to be a manager, or manage your own
business
Dr. Jerry@KCM

5. Why to Study Management?
• We all have a vested interest in improving the
way organizations are managed.
– Better organizations are, in part, the result of good
management.
• You will eventually either manage or be
managed
– Gaining an understanding of the management
process provides the foundation for developing
management skills and insight into the behavior of
individuals and the organizations.
Dr. Jerry@KCM

6. Management Key Concepts
• Organizations: People working together and
coordinating their actions to achieve specific goals.
• Goal: A desired future condition that the organization
seeks to achieve.
• Management: The process of using organizational
resources to achieve the organization’s goals.
• Resources are organizational assets and include:
– Man,
– Machinery,
– Materials,
– Money
• Managers - to meet its goals.
Dr. Jerry@KCM

7. Concept Of Management
• The term management is used in three
alternative ways:
• Management as a discipline,
• Management as a group of people, and
• Management as a process.
Dr. Jerry@KCM

8. What is Organization?
• Organization
– A systematic arrangement of people brought together
to accomplish some specific purpose; applies to all
organizations—for-profit as well as not-for-profit
organizations.
– Where managers work (manage)
• Common characteristics
– Goals
– Structure
– People
Dr. Jerry@KCM

9. Common Characteristics of
Organizations
Dr. Jerry@KCM

10. People Differences
• Operatives
– People who work directly on a job or task and
have no responsibility for overseeing the work of
others
• Managers
– Individuals in an organization who direct the
activities of others
Dr. Jerry@KCM

11. Organizational Levels
Dr. Jerry@KCM

12. Identifying Managers
• First-line managers
– Supervisors responsible for directing the day-to-day
activities of operative employees
• Middle managers
– Individuals at levels of management between the first-
line manager and top management
• Top managers
– Individuals who are responsible for making decisions
about the direction of the organization and
establishing policies that affect all organizational
members
Dr. Jerry@KCM

13. Management Defined
• Management
– The process of getting things done, effectively and
efficiently, through and with other people
– Efficiency
• Means doing the thing correctly; refers to the
relationship between inputs and outputs; seeks to
minimize resource costs
– Effectiveness
• Means doing the right things; goal attainment
Dr. Jerry@KCM

14. Definition-Management
• F.W. Taylor -“Art of knowing what you want to do
and then seeing that it is done the best and
cheapest way”.
• Henry Fayol –“To Manage is to forecast, to plan,
to organize, to command, to co-ordinate and to
control”.
• Peter F. Drucker –”Management is work and as
such it has its own skills, its own tools and its own
techniques”.
• “Management is the art of getting things done
through and with people”.
Dr. Jerry@KCM

15. • Decision-oriented Definitions:
– “Management is simply the process of decision
making and control over the action of human
beings for the expressed purpose of attaining
predetermined goals”
• People oriented Definitions:
– “Management is the accomplishment of results
through the efforts of other people”
• Function oriented Definitions:
– “To manage is to forecast and to plan, to organize,
to coordinate and to control”
Dr. Jerry@KCM

16. MAN
AGE
MENT
PROC
ESS
ACTIV
ITIES
Management process:
planning, organizing, leading, and
controlling Dr. Jerry@KCM

17. Management Process
• Planning
– Includes defining goals, establishing strategy, and
developing plans to coordinate activities
• Organizing
– Includes determining what tasks
to be done, who is to do them,
how the tasks are to be
grouped, who reports to
whom, and where
decisions are to be made
Dr. Jerry@KCM

18. Management Process
• Leading
– Includes motivating employees, directing the
activities of others, selecting the most effective
communication channel, and resolving conflicts
• Controlling
– The process of monitoring performance,
comparing it with goals, and
correcting any significant
deviations
Dr. Jerry@KCM

19. Is The Manager’s Job Universal?
• Level in the organization
– Do managers manage differently based on where they are in the
organization?
• Profit versus not-for-profit
– Is managing in a commercial enterprise different than managing in a
non-commercial organization?
• Size of organization
– Does the size of an organization affect how managers function in the
organization?
• Management concepts and national borders
– Is management the same in all economic, cultural, social and political
systems?
Dr. Jerry@KCM

20. Distribution of Time per Activity by
Organizational Level
Dr. Jerry@KCM

21. General Skills for Managers
• Conceptual skills
– A manager’s mental ability to coordinate all of the
organization’s interests and activities
• Interpersonal skills
– A manager’s ability to work with, understand, mentor, and
motivate others, both individually and in groups
• Technical skills
– A manager’s ability to use the tools, procedures, and
techniques of a specialized field
• Political skills
– A manager’s ability to build a power base and establish the
right connections
Dr. Jerry@KCM

22. Specific Skills for Managers
• Behaviors related to a manager’s
effectiveness:
– Controlling the organization’s environment and its
resources.
– Organizing and coordinating.
– Handling information.
– Providing for growth and development.
– Motivating employees and handling conflicts.
– Strategic problem solving.
Dr. Jerry@KCM

23. Management practice is asold ashuman civilization
when people started living together ingroups.
For every human group requires management and the
history of human being is full oforganizational and behavioral
activities becausehuman being is the ‘socialanimal’.
However, the study of human managers achieves
result is predominantly atwentieth centuryphenomena.
Evolution of ManagementThought
Dr. Jerry@KCM

24. The evaluation of management thought during
this period can be studiedin three parts asunder.
1. Classical approaches : This represented by scientific
management thought, administrative management and
bureaucracy.
2 Behavioral Approach: This represented human
relation movement and behavioral approach.
3. Modern approaches : This represented quantitative
approach, system approach and contingency
approach.
Dr. Jerry@KCM

25. Major classification of ManagementApproaches and their Contributors
1.ClassicalApproach i) Scientificmanagement
ii) Administrativemanagement
iii) Bureaucratic management
a) F.w.Taylor
b) HenryGantt
c)Franklin & LillianGilbreth
a) HenryFayol
a) MaxWeber
2.BehavioralApproach i) Human RelationApproach
ii) BehavioralScience
a) EltonMayo
a)Maslow
b) Herzberg
iii) X and Ytheory of management a)Mc George Doughlas
3.ModernApproach a) Churchmanwest
b) Paul Hersey and kenBlanchard
i) systemApproach
ii) contingencyapproach
situational approach
Dr. Jerry@KCM

26. Dr. Jerry@KCM

27. Frederick Winslow
Taylor wasanAmerican
mechanical engineer who
sought to improve
industrial efficiency.
"The Father of Scientific
Management."
BORN: March20,1856,Ge
rmantown, United States
DIE: March21,1915,
United States
Dr. Jerry@KCM

28. 1.F.W.Tayloris pioneer of the Scientific management theory,
he was a scientist and made researches how man can be
used efficiently at work. F.W.Tylor is often called "The
Fatherof Scientific Management." His approach is alsooften
referredto, as Taylor's Principles, orTaylorism.
2.During his research he found the main cause of
inefficiency and wastage in factories was ignorance onthe
part of workers and managers of scientificmethods.
3.Forthis purpose he developed a theory knownas
“Scientific management” and also called Taylorism, inwhich
he suggested that the efficiency can be improvedby
investigation, analysis, and measurement.
Dr. Jerry@KCM

29. 4.Thisconcept further carried on by Frank and
Lillian Gilbreth, Henry Gantt, Georgeberth and
Edward Felen etc.,
5.Scientific management theory main objective is
improving economic efficiency, especially labor
productivity. It wasone ofthe earliest attempts to
apply science to the engineering of processesand
to management.
6.According to Taylor,” scientific management is
concerned with knowing exactly what you wantmen
to do and the seein that they do it in the best and
cheapest way” Dr. Jerry@KCM

30. Dr. Jerry@KCM

31. PRINCIPLES OF SCIENTIFIC
MANAGEMENT
1.Reduction rule of thumbs withscience
2.Harmony in groupaction
3.Cooperation between managementand
workers
4.Development of workers throughscientific
selection and training
Dr. Jerry@KCM

32. 1.Reduction rule of thumbs withscience:
Thisprinciple saysthat we should not get
stuck in aset routine with the old techniques of doing
work; rather we should be constantlyexperimenting
to develop new techniques which make thework
much simpler, easier and quicker.
2.Harmony in groupaction:
Asper this principle, such an atmosphere
should be created in the organization thatlabor and
management consider each other indispensable.
Group harmony suggeststhat there should be
mutual give and take situation and proper
understanding sothat group aswhole contributes to
the maximum. Dr. Jerry@KCM

33. 3.Cooperation between management and workers:
According to this principle, scientificmanagement
involves achieving cooperation rather than chaotic
individualism.
Scientific management based on mutual confidence,
cooperation and goodwill. Taylor hassuggested that the
manager and the workers should jointly determine
standards.
4.Development of workers through scientific selectionand
training:
In scientific management, all workers shouldbe
developed to the fullest extent possible for their own and for
the company’s highest prosperity. Development of workers
requires their selection and providing them training at the
workplace.
Dr. Jerry@KCM

34. 5.Maximum output in place ofrestricted
output:
Scientific managementinvolves
continuous increase in productionand
productivity instead of restrictedproduction
either by management or byworker.
Dr. Jerry@KCM

35. Objectives of Scientific Management inBusiness
1. Quality control
2. Incentive wages
3. Higherproductivity
4.Costreduction
5. Right Men for Right Job
6.Elimination of wastage
Dr. Jerry@KCM

36. Administrative
Management
Theory
Dr. Jerry@KCM

37. Henry Fayol
(1841-1925) was
amajor
contributor to
Administrative
Management
approach.
Dr. Jerry@KCM

38. Henry Fayol, wasaFrench mining
engineer who is sometimes referred to asthe
real “Father of modernmanagement”.
Fayollooked at the problem ofmanaging
with the management point of view not with
the workers point ofview.
Dr. Jerry@KCM

39. Fayol believed by focusing on
managerial practices he could minimize
misunderstandings and increase
efficiency in organizations
Fayol was apioneer in the study of
the principles and functions of
management.
He made clear distinction between
operating and managerialfunctions.Dr. Jerry@KCM

40. Fayolidentified five major functionsof
management.
Theyare asfollows:
1.Planning
2.Co-ordinating
3.Organizing
4.Controlling
5.Commanding
Dr. Jerry@KCM

41. In addition to hisfive management
functions, fayol alsodeveloped14principles that
arestill usedtoday.Thesecanbecalledas
Dr. Jerry@KCM

42. During the early 20th century,
Fayoldeveloped 14 principles of
management in order to helpmanagers
manage their affairs moreeffectively.
Thefourteen principlesare:

43. Dr. Jerry@KCM

44. 1.Division of
Work: When employees are
specialized, output can
increase becausethey
become increasingly skilled
and efficient.
Byseparating asmall
part of work, the workers
speed and accuracy in its
performance increases.
Thisprinciple is
applicable to both technicalas
well asmanagerial work.
Dr. Jerry@KCM

45. Authority means the right
of asuperior to give order tohis
subordinates and responsibility
meansobligation for
performance.
Thisprinciple suggeststhat
there must be parity between
authority andresponsibility.
Theyare co-existent and go
together, and are two sidesof the
same coin.
2.Delegation ofAuthority and Responsibility :
Dr. Jerry@KCM

46. Discipline refers to
obedience, proper conduct
in relation to others,respect
of authorityetc.
It is essential for thesmooth
functioning of allorganizations.
Subordinates should
respect their superiorsand
obey their orders.
3.Disciplane
:-
Dr. Jerry@KCM

47. Thisprinciple states that 4.Unity of Command
every subordinate should
receive orders and be
accountable to one andonly
superior.
If an employee receives
orders from more than one
superior, it is likelyconfusion
and conflict.
Unity of commandalso
makesit easier to fix
responsibility for mistakes.Dr. Jerry@KCM

48. Dr. Jerry@KCM

49. 5.UnityofDirection:–
Dr. Jerry@KCM

50. Dr. Jerry@KCM

51. 6.Subordination of Individual
Interests to the General Interest :–
Dr. Jerry@KCM

52. Dr. Jerry@KCM

53. 7
Dr. Jerry@KCM

54. 8.Centralization:
Dr. Jerry@KCM

55. Dr. Jerry@KCM

56. Dr. Jerry@KCM

57. 9.ScalarChain:–
• Scalar chain refers to the chain of
superiors ranging from top management to the
lowestrank.
• Theprinciple suggeststhat there shouldbeclear
line of authority top to bottom linking all managers
at alllevels
• It isconsideredachainof command.
.
Dr. Jerry@KCM

58. Dr. Jerry@KCM

59. This principle concerned with proper and systematic arrangement of
things andpeople
Arrangement of things called material order.Itensures proper
and fixed place for various materials, tools, and equipments.
10.Order:–
Dr. Jerry@KCM

60. Arrangement of people called socialorder.
It ensures proper selection andappointment
of most suitable person onthe suitable job.
Dr. Jerry@KCM

61. 11.Equity:
• Equity means to be kind, fair and
justice treatment to employees. Employees
will put their maximum efforts.
• When they are treated with kindness
and justice. This will ensure loyalty and
devotion.
•There should be not discrimination against
anyone on gender, religion, language, caste,
belief or nationality.Dr. Jerry@KCM

62. Dr. Jerry@KCM

63. Dr. Jerry@KCM

64. Theperiodof serviceshouldnot betoo short andemployeesshouldnot be
movedfrom positionsfrequently
Dr. Jerry@KCM

65. Dr. Jerry@KCM

66. 13.Initiative:
Dr. Jerry@KCM

67. Dr. Jerry@KCM

68. Dr. Jerry@KCM

69. Characteristics
• Management is a distinct process.
• Management is an organized activity
• Management aims at the accomplishment of
predetermined objectives.
• Management is both a science and an art.
• Management is a group activity
• Management principles are universal in nature
• Management integrates human and other
resources.
Dr. Jerry@KCM

70. Functions Of Management
• Planning
• Organizing
• Staffing
• Directing
• Controlling
Dr. Jerry@KCM

71. • Planning is determining the objectives and
formulating the methods to achieve them. It is more
simply said than done. A job well planned is half
done. During planning one needs to ask oneself the
following:
• What am I trying to accomplish i.e. what is my
objective?
• What resources do I have and do I need to
accomplish the same?
• What are the methods and means to achieve the
objectives?
• Is this the optimal path?
Planning
Dr. Jerry@KCM

72. • Purposes or missions,
• Objectives-It is the ultimate goal towards which the activities of the
organization are directed
• Strategies-general program of action and deployment of resources
• Policies-general statement or understanding which guide or channel
thinking in decision making
• Procedures-states a series of related steps or tasks to be performed in a
sequential way
• Rules-prescribes a course of action and explicitly states what is to be done
• Programs-comprehensive plan that includes future use of different
resources
• Budgets-statement of expected results expressed in numerical terms
Types of Planning
Dr. Jerry@KCM

73. • Take Time to Plan
• Planning can be Top to Down or Bottom to Top
• Involve and Communicate with all those Concerned
• Plans must be Flexible and Dynamic
• Evaluate and Revise
Principles of Planning
Dr. Jerry@KCM

74. 1. Determining the goals or objectives for the entire
organization.
2. Making assumptions on various elements of the
environment.
3. To decide the planning period.
4. Examine alternative courses of actions.
5. Evaluating the alternatives.
6. Real point of decision making
7. To make derivative plans.
Steps in Planning
Dr. Jerry@KCM

75. • Programmed
• Non programmed.
• Mechanistic-It is one that is routine and repetitive in nature
• Analytical-It involves a problem with a larger number of
decision variables
• Judgmental-It involves a problem with a limited number of
decision variables, but the outcomes of decision alternatives
are unknown
• Adaptive-It involves a problem with a large number of
decision variables, where outcomes are not predictable
Types of Managerial Decisions:
Dr. Jerry@KCM

76. • Determine what is to be done/ Division of Work:
• Assign Tasks: Departmentalization:
• Link Departments: Hierarchy Development:
• Decide how much Authority to Designate/ Authority,
Responsibility and Delegation:
• Decide the Levels at which Decisions are to be made /
Centralization vs. Decentralization:
• Decide how to Achieve Coordination:
Process of Organizing
Dr. Jerry@KCM

77. • Coordination by Rules or Procedures
• Coordination by Targets or Goals:
• Coordination through the Hierarchy
• Coordination through Departmentalization
• Using a Staff Assistant for Coordination:
• Using a Liaison for Coordination:
• Using a Committee for Coordination
• Using Independent Integrators for Coordination:
• Coordination through Mutual Adjustment:
Techniques for achieving coordination.
Dr. Jerry@KCM

78. Definition 1
• Selecting and training individuals for specific job functions,
and charging them with the associated responsibilities.
Definition 2
• Number of employed personnel in an organization or
program. Also called workforce.
Staffing
Dr. Jerry@KCM

79. • Provides positive and dynamic leadership
• Provides maximum opportunities
• Provides proper motivation of personnel
• Ability to command people
Directing/Leading
Dr. Jerry@KCM

80. • Feed Forward Control-Control that attempts to identify and
prevent deviations before they occur is called feed forward
control, sometimes called preliminary or preventive control.
• Concurrent Control-Control that monitors ongoing employee
activities during their progress, to ensure they are consistent
with quality standards, is called concurrent control.
• Feedback Control-In this case, the control takes place after
the action. Sometimes called post-action or output control
Controlling Concepts
Dr. Jerry@KCM

81. • Establish Standards of Performance
• Measure Actual Performance
• Compare Performance to Standards:
• Take Corrective Action
Steps in the Control Process
Dr. Jerry@KCM

82. • Effective controls are timely.
• Control standards should encourage compliance.
• Setting effective standards is important
• Use management by exception.
• Employees should get fast feedback on performance.
• Do not over rely on control reports.
• Fit the amount of control to the task.
Principles of Effective Control
Dr. Jerry@KCM

83. Managerial Skills
• Technical Skills
• Human Skills
• Conceptual Skills
Dr. Jerry@KCM

84. Technical Skills
• A persons’ knowledge and ability to make
effective use of any process or technique
constitutes his technical skills.
• For eg: Engineer, accountant, data entry
operator, lawyer, doctor etc.
Dr. Jerry@KCM

85. Human Skills
• An individuals’ ability to cooperate with other
members of the organization and work
effectively in teams.
• For eg: Interpersonal relationships, solving
people’s problem and acceptance of other
employees.
Dr. Jerry@KCM

86. Conceptual Skills
• Ability of an individual to analyze complex
situations and to rationally process and
interpret available information.
• For e.g.: Idea generation and analytical
process of information.
Dr. Jerry@KCM

87. Managers Role
• Interpersonal Role
• Informational Role
• Decisional Role
Dr. Jerry@KCM

88. Interpersonal Role
• Figurehead
– Ethical guidelines and the principles of behavior
employees are to follow in their dealings with
customers and suppliers
• Leader
– Give direct commands and orders to subordinates and
make decisions
• Liaison
– Coordinate between different departments and
establish alliances between different organizations
Dr. Jerry@KCM

89. Informational Role
• Monitor
– Evaluate the performance of managers in different
functions
• Disseminator
– Communicate to employees the organization’s
vision and purpose
• Spokesperson
– Give a speech to inform the local community
about the organization’s future intentions
Dr. Jerry@KCM

90. Decisional Role
• Entrepreneur
– commit organization resources to develop innovative
goods and services
• Disturbance handler
– to take corrective action to deal with unexpected problems
facing the organization from the external as well as
internal environment
• Resource allocator
– allocate existing resources among different functions and
departments
• Negotiator
– work with suppliers, distributors and labor unions
Dr. Jerry@KCM

91. Types Of Managers
• FIRST-LINE MANAGERS
– often called supervisors stand at the base of the
managerial hierarchy
• MIDDLE MANAGERS
– heads of various departments and organize human
and other resources to achieve organizational goals
• TOP MANAGERS
– set organizational goals, strategies to implement them
and make decisions
Dr. Jerry@KCM

92. Management Is An Art And Science
• Art
– Practical know how
– Technical skills
– Concrete results
– Creativity
– Personalized nature
• Science
– Empirically Derived
– Critically tested
– General principles
– Cause and effect
relationship
– Universal applicability
Dr. Jerry@KCM

93. What Make Managers Successful?
• Hard work
• Smart work
• Patience
• Out of box thinking
• Reading and acquiring knowledge
• Ethical consciousness
• Collaborative relationship
• Perseverance
Dr. Jerry@KCM