4. Organization
“An Organization is a social unit or human grouping deliberately structured
for the purpose of attaining specific goals”.
-Amitai Etzioni
5. Types of Organization
• Organization which benefits of their owners:
All business organizations fall in this category.
• Organization which benefits of their members:
A wide class of unions, cooperatives and clubs.
• Organization which benefits of their clients:
Insurance companies, private schools etc…
• Organization which benefits of their whole society:
Governmental departments, the armed services and police.
7. Management
• “Management is the process of designing and maintaining of an
environment in which individuals working together in groups efficiently
accomplish selected aims”.
-Koontz and weihrich
10. What is science?
• The following characteristics are essential for a subject to be recognized
as a science.
• The existence of a systematic body of knowledge with array of principles.
• Based on scientific enquiry.
• Principle should be verifiable.
• Reliable basis for predicting future event
11. What is an art?
• Art means application of skill in finding a desired result
• Management process involves the use of practical knowledge and personal skills.
• Management is creative.
• Application of practical knowledge and certain skills helps to achieve concrete results.
13. Management is both of science and art
• Management is a science because it contains general
principles. It is also and art because it requires certain
personal skills to achieve desired results
15. MANAGEMENT AND ADMINISTRATION
• Administration is concerned with decision-making and policy formulation,
while management is concerned with the execution of what has been laid
down by the administrators.
• Management is the generic term for total process of executive control
involving responsibility for effective planning and guidance of the operations
of an enterprise
16. MANAGEMENT AND ADMINISTRATION
S.No
MANAGEMENT
ADMINISTRATION
1
It is the lower level functions
It is the higher level functions
2
It refers the employees
It refers to the owners of the organization
3
Management is concerned with execution of
decision
Administration is concerned with decision
making
4
It acts through the organization
It acts through the management
5
Management executes these policies into practice Administration lays down broad policies and
principles for guidance
18. Role of Manager
• Interpersonal Roles
• Informational Roles
• Decisional Roles
19. Role of Manager
• Interpersonal Roles
• Leader – Responsible for staffing, training, and associated duties.
• Head – The symbolic head of the organization.
• Liaison -Maintains the communication between all contacts and
informers that compose the organizational network
20. Role of Manager
• Informational Roles
• Monitor – Personally seek and receive information, to be able to understand the
organization.
• Disseminator – Transmits all import information received from outsiders to the
members of the organization.
• Spokesperson – On the contrary to the above role, here the manager transmits the
organization’s plans, policies and actions to outsiders
21. Role of Manager
• Decisional Roles
• Entrepreneur – Seeks opportunities. Basically they search for change, respond to it,
an exploit it.
• Negotiator – Represents the organization at major negotiations.
• Resource Allocator – Makes or approves all significant decisions related to the
allocation of resources.
• Disturbance Handler – Responsible for corrective action when the organization
faces disturbances.
23. Evolution of Management Taughts
• The origin of management as a discipline was developed in the late 19th
century
• The different approaches of management are
• Classical approach
• Behavioral approach
• Quantitative approach
• Systems approach
• Contingency approach
26. F.W. Taylor’s
• Fredrick Winslow Taylor is called “father of scientific management.”
• Taylor approach was based on the basics principles
• Observation and measurement should be used in the Organizations.
• The employees should be scientifically selected and trained
• Due to scientific selection and training of employee has the opportunity of earning a
high rate of pay.
27. Principles of scientific management (or)
Contributions in Scientific Management
1. Separation of planning and
doing
2. Functional foremanship
3. Job analysis
1.
Time study
2.
Method study
3.
Motion study
4.
Fatigue study
5. Standardization
5. Scientific selection and training
6. Financial incentives
7. Economy
8. Mental Revolution
28. Contributions in Scientific Management (or)
Principles of scientific management
• Time and motion study
• Differential Payment
• Drastic reorganization of supervision
• Scientific Recruitment and Training
• Intimate Friendly Cooperation between the Management and
Workers
30. Henry Fayol’s
• Henry Fayol, a French industrialist concentrated on that administrative
aspect of scientific management
• Fayol’s Concentrate into two parts of Management
• The first is concerned with the theory of administration in which Fayol divided the
total industrial activities into six categories
• The second is concerned with the fourteen principles of management
31. Theory of Administration
• Technical (Production, Manufacture)
• Commercial (Buying, Selling, Exchange)
• Financial (Search for and optimum use of capital)
• Security (Protection of property and person)
• Accounting (Balance sheets, Cost statistics)
• Management (Planning, Organizing, Coordinating, Directing, Controlling)
32. Fourteen Principles of Management (or)
Administrative Management
1. Division of work.
8. Centralization.
2. Authority and Responsibility.
9. Scalar chain.
3. Discipline
10. Order.
4. Unity of Command.
11. Equity.
5. Unity of Direction.
12. Stability of tenure of personnel.
6. Subordination of individual
interest to general interest.
7. Remuneration of personnel
( Job Security)
13. Initiative
14. Esprit decorps.(Unity)
33. Administrative Management (or)
Fourteen Principles of Management
• Division of Work
• Produces more and better work with the same effort
• Entrusted to specialist in related field
34. Administrative Management (or)
Fourteen Principles of Management
• Authority and responsibility
• The right to give order and power to exact obedience
• Individual who is willing to exercise authority, must also be prepared to bear
responsibility to perform work in the manner desired.
• Discipline
• Absolutely essential for the smooth running of business.
• It means obedience to authority, observance of the rules of service and norms of
performance, respect for agreements, sincere efforts for completing the given job,
respect for superiors.
35. • Unity of command
• Each employee should receive instructions about a particular work from one superior
only
• Unity of direction
• Should not pull in different direction. I
• It should follow the organizational goals
• Remuneration
• Centralization
• Objective to pursue should be the optimum utilization of all facilities of the personnel
• Scalar chain
• Hierarchy of authority from highest to lowest superiors in relation to subordinates at
various levels
36. • Order
• Right place for everything and for every men
• Scientific selection of competent personnel, correct assignment of duties to personnel
and good organization
• Equity
• Equality of fair treatment
• Results form a combination of kindness and justice
• Initiative
• Means freedom to think out and execute plan
• Innovation which is hallmark of technological progress, is possible only where the
employees are encouraged to take initiative.
48. The Global Environment
• In the past, managers have viewed the global sector as closed.
•
Each country or market was assumed to be isolated from others.
•
Firms did not consider global competition, exports.
• Today’s environment is very different.
•
Managers need to view it as an open market.
•
Organizations buy and sell around the world.
•
Managers need to learn to compete globally.
49. Managing Across the Globe: Why?
• Great opportunities in the international market
• Other countries having population explosions
• Strong profit potential
• Growing trend – Across borders business relationships
• Slowdown in industrialized nations
• Growth in newly industrialized and developing countries
50. Managing Globally -Three perspectives or attitudes
• An Ethnocentric Attitude is the parochialistic (opinions) belief that the
best work approaches and practices are those of the home country (the
country in which the company’s headquarters are located).
• A Polycentric Attitude is the view that the managers in the host country
(the foreign country where the organization is doing business) know the
best work approaches and practices for running their business.
• A Geocentric Attitude is a world-oriented view that focuses on using the
best approaches and people from around the globe. To be a successful
global manager, an individual needs to be sensitive to differences in
national customs and practices
53. Stages of Internationalization
• Global sourcing
• Exporting or Importing
• Licensing and franchising
• Alliance
• Joint Venture
• Foreign subsidiary
54. MANAGING IN A GLOBAL ENVIRONMENT
-CHALLENGES
• The Legal-Political Environment
• The Economic Environment
• The Cultural Environment
• National culture
55.
56.
57. Management - A
“Every morning in Africa, a gazelle wakes up and knows it must run
faster than a lion or it will be killed. Every morning a lion wakes up
and knows that it must outrun the slowest gazelle or it will starve to
death. It doesn’t matter whether or not you are a gazelle or lion. When
the sun comes up, you better start running.”
Jack Perkowski, Chairman and CEO, ASIMCO Technologies