The practice of management pdf download

Social forces: These forces can be in the form of social norms arising from the values and beliefs of people in a society. These forces help in the formation of social contracts, wherein no particular sets are mutually understood. People interact with each other on the basis of these norms. Similarly, social contracts are also formed between organisations and their labour, creditors, investors, and customers. These forces also play an important role in determining the distri- bution of goods and services in a society.

In which empire, management organised general administration and controlled its political, military, and judgmental issues by using effective communication? Roman Empire b. Mughal Empire c. Ottoman Empire d. Russian Empire S 2. Name the characteristic of the industrial revolution that is all the maximisation of production. Political forces can be in the form of social norms arising from the values and beliefs of people in a society.

Compare these de- velopments to the management practices of the present era. Each approach has attempted to explain the concept of management from different aspects.

The two most common approach- es to management are listed in Figure 1. In this approach, it was recommend- ed that production can be increased by improving the efficiency of an organisation. Thus, managers must focus on determining the best ways to perform jobs. The classical approach to management can be studied under three main areas, which are shown in Figure 1.

Thus, scientific management is also popular by the name of Taylorism. He conducted a series of experiments in three organisations that greatly N influenced management thoughts. His contribution in scientific man- agement can be studied under the following categories: Time and motion study: It is a technique of scientific management that was developed to define employee productivity standards.

In this technique, a complex job is first divided into a series of simple tasks. After that, the way these tasks are performed is observed to determine and eliminate waste motions.

In this way, the precise time taken to complete the job is determined, which further helps in developing delivery schedules and incentive schemes. Time and motion study is most appropriate for repetitive jobs. Differential piece rate plan: This plan was developed by Taylor on the assumption that all the workers have different capabilities and must be paid accordingly. This plan is also based on an assump- tion that the production system is based on piece rates.

Under the plan, time and motion study is used to estimate the standard time of completing a job. Based on the standard time, two piece rates are devised, namely higher and lower.

The workers who exceed the standard time are given higher piece rates as wages. On the other hand, lower piece rates are given to those workers who do not meet the standard.

For that, an organisation should hire adequate number of foremen. Scientific recruitment and training: Taylor laid emphasis on training workers and developing their skills so that they can effi- ciently perform more than one type of job.

Friendly cooperation between management and workers: Taylor believed that both management and workers have one common goal, i. Therefore, both management and work- ers must work together in harmony to achieve the common goal. He focussed on developing administrative principles that could be applicable to both general and higher managerial levels.

Fayol presented 14 principles of man- IM agement, which act as a guide for developing management practices. These principles are explained as follows: 1. Division of work: According to this principle, work should be divided among individuals and groups according to their skills M and knowledge.

This helps in completing the work with greater efficiency. Authority and responsibility: Authority is a right of an individual N to give orders and instructions. The right of authority arises from the position, intelligence, experience, and skills of a manager.

On the other hand, responsibility is a state of being accountable for the consequences of the decisions taken by an individual. Managers should be responsible for the actions taken by them. Discipline: Discipline in an organisation refers to the obedience to authority.

Employees must obey and respect the governing policies and rules of the organisation. In order to maintain good discipline in an organisation, there is a need for good supervision at all levels; clear understanding between management and workers; and rational use of penalties.

Unity of command: According to this principle, employees associated with a particular type of work should report to one superior only. This helps in avoiding confusions in the role of the employees. Unity of direction: It means that there should be one direction in which employees must move to achieve a particular objective.

If employees get pulled into different directions, it may be difficult for them to achieve the objective. Remuneration: There should be provision of fair wages for workers. The calculation of wages should be done by considering various factors, such as business environment, cost of living, capacity of organisation to pay, and productivity of employees.

Scalar chain: Scalar chain refers to the hierarchy followed in an organisation from top managers to employees working at lower levels. According to the principle of scalar chain, all communication should pass through proper channels of hierarchy. However, in case there are any delays in communication due to hierarchy, S there must be provision of cross communication.

According to Fayol, scalar chain is vital to the success of organisations. Order: Order is required for the efficient coordination of all IM the elements in an organisation. Management must follow the principle of the right place for everything and every man. Equity: The principle of equity means fair treatment of all employees. Management must treat all employees equally and M should be free from biases and prejudices. Stability of tenure of personnel: Management must strive to stabilise the tenure of employees by providing them job security.

N Increased turnover always results in inefficient production; therefore, organisations must attempt to reduce it by improving employee morale and motivation. Initiative: Management must provide freedom to employees so that they can carry out orders effectively. Employees should be encouraged to take initiatives in their respective fields in order to perform their jobs efficiently.

Esprit de corps: It refers to team spirit. Management must adopt new ways to improve team spirit among employees. This helps employees to work in harmony. According to Webber, bureaucratic management is the most appropriate administration. Some of the im- portant characteristics of bureaucratic management are: Management by standard rules: According to Webber, an organ- isation must be governed by a set of rules.

Upper level managers must follow these rules while controlling lower level workers. According to him, the division of labour results in saving a lot of time consumed during changing over from one job to another. Selection of personnel having technical skills: Employees having required technical skills must be hired in order to perform their jobs efficiently. Hierarchical organisational structure: In order to be successful, an organisation must adopt a hierarchical structure wherein low- er level employees must be under the supervision of higher level managers.

Record of all administrative acts, decisions, and rules: An or- ganisation must keep a record of all its administrative activities including policies, rules, and decisions. The record can be used in the future for studying the nature of activities and people in the S organisation.

The approach focused mainly on employee satisfaction. According to this approach, employees do not necessarily work for money and they like to receive affection and respect of co-workers, which further increases M their productivity. This helps an employee to contribute more towards the success of an organisation. Modern approaches can be classified under the following three categories: N Quantitative approach: The quantitative approach focused on managerial decision making.

This approach is also known as man- agement science approach. It was developed during World War II to find the problems of warfare. The quantitative approach can be studied under three areas, which are: Operations research: It is a discipline that lays emphasis on improv- ing the effectiveness of management decisions by using advanced analytical techniques.

It is sometimes considered to be a subfield of mathematics as it involves extensive calculations. Some of the com- monly used operations research techniques are linear program- ming, querying, waiting line, routing and distribution models, etc. Operations management: It is an area of management that in- volves supervising and controlling the production process. For this, various techniques are used, such as inventory analysis, sta- tistical quality control, and networking. Management information system MIS : This is a computerised management system used to provide information required by or- ganisations for their effective management.

MIS facilitates the de- cision making process of an organisation by providing meaningful information about its business processes. According to this approach, a system can be defined as a set of components that are interacting regularly or are interdependent, thus making a single unit. The systems approach focuses on the following points: A system comprises units and sub-units. Each and every part of a system need to be thoroughly under- stood in order to analyse it.

A system always has boundaries to define its beginning and ending. Every system is developed to achieve a specific goal. No system can exist in isolation. Contingency approach: This approach is also known as situation- al approach wherein an organisation determines problems by ana- S lysing its conditions and environment. According to this approach, there is no single set of rules that is applicable in solving all types IM of problems in organisations.

Therefore, managers need to analyse every problem and various aspects associated with it, and define different ways to solve the problem. Which approach of management was developed in ? Administrative management b.

Bureaucratic management c. Scientific management d. Traditional management 7. According to which principle, work should be divided among individuals and groups according to their skills and knowledge?

Who presented 14 principles of management? Time and motion study is one of the important traits of bureaucratic management. Is the system approach a modern approach? Prepare a report on the advantages and limitations of the approaches followed in these organisations. Many scholars have contributed to the development of management. Some of the major contributors are listed in Figure 1. Mayo IM Figure 1. He taught maths at Cambridge University from He is known as the father of computers.

However, Charles N Babbage also had a significant contribution to the field of manage- ment. In his view, the human factor plays a significant role in the success of an organisation; therefore, employees should be associat- ed with the management in a manner that benefits both. Apart from this, Charles Babbage also developed the concept of profit sharing and participative decision making. He introduced the use of science and maths in the field of manufacturing operations.

He advocated the use of division of labour to assign work in organisations. Moreover, he suggested that all management decisions must be based on accurate knowledge. Babbage advocated the use of quantitative methods and industrial engineering techniques to improve manufacturing. TAYLOR Fredrick Winslow Taylor is well known for developing the concept of scientific management; therefore, is known as the father of scientific management. Initially, he worked as an apprentice in in a small machine shop in Philadelphia, US.

In , he joined Midvale Steel Works as a mechanist and went up to the position of chief engineer in After that, he joined Bethlehem Steel Works. Through these experiments, he developed the theory of scientific management also known as scientific school of thought that involves the application of scientific methods of study and analysis of various management problems.

He developed the principles of scientific management with an aim of improving the pro- ductivity at the manufacturing plant. You have already studied about scientific management in the previous section. Apart from this, Taylor was also known for his contributions in the following areas: Use of descriptive cost accounting Concept of mutual understanding between workers and manage- ment Provision of bonus to workers for making suggestions for improve- ment in productivity Invention of an analytical machine, also known as differential ma- chine.

Initially, he worked as a mechanical en- gineer in Pool and Hunt of Baltimore. After that, he worked alongside Fredrick W. Taylor at Midvale Steel and Bethlehem Steel till Later on, he became a management consultant in the engineer- M ing industry.

He also promoted the concept of social responsibility of busi- N ness. His best contribution emerged in the form of Gantt charts, which are visual-diagrammatic tools used for creating production schedules. His main focus was on improving the efficiency of operations manage- ment in organisations.

He developed the concept of administrative management, wherein he formulated several management principles that could be applied to all types of organisations. You have already studied about the theory of administrative management in detail. Henri Fayol is also considered as the father of modern management.

He also laid down best practices for managers, which are as follows: Managers must be able to complete work within a specified period of time Managers must organise both human and non-human resources in order to carry out tasks effectively.

Managers must take commands while selecting and assessing workers. Managers must ensure that all the activities are carried out as planned. According to him, investing in human resource is better than investing in other assets. He advocated that employees should be working because they are interested in it rather than being forced.

He also propounded that there should be a harmonious relationship between managers and employees in order to improve the efficacy of production. His philosophy and ideas are considered as a fore- runner to the development of behavioural approach of management. He also advocated that there should be well-defined regu- lations and authority in organisations. Weber perceived three types of administration, namely traditional, charismatic, and bureaucratic.

In traditional organisations, managerial positions are handed down from M one generation to the other irrespective of intelligence, knowledge, and experience. In charismatic organisations, management functions are not delegated and all the employees are considered to be the loyal N subjects of a leader.

Mayo, also known as Elton Mayo , was an Aus- tralian psychologist. He is famous for his contribution in Hawthorne studies. Hawthorne experi- ments were conducted at Western Electric Plant at Chicago. Mayo was involved in the project in and , and interviewed the workers involved in the experiments. Through these studies, Mayo concluded that workers become more productive if they receive attention from the management. The outcome of his findings in Hawthorne studies later gave way to the human relations movement.

The movement fo- cuses on the concept of job satisfaction, group norms, and leadership quality and their significance in the improvement of productivity. Who developed the concept of profit sharing and participative decision making? Max Weber b.

Charles Babbage c. George E. Mayo d. Robert Owen Contribution of Henry Laurence Gantt: a. Task and bonus plan b. Because it requires that an organization overcome natural entropic forces that human organizations display towards deterioration and decay. An organization high in spirit of performance is one that is led by executives who are committed to doing things right efficiency and to getting the right things done effectiveness.

These executives possess integrity of character; have a vision for the purpose of their organization; focus on opportunities; are change leaders; and follow essential tasks, responsibilities, and practices of management. We observe from Figure 1 that the practice of management has many centers and the elements are interrelated. One could say that the practice of management is a polycentric configuration of related elements that should be viewed as a whole in order to appreciate the role and function of each part.

Peter F. Drucker on the Practice of Management. Source: Peter F. Copyright , Leader to Leader Institute. Reprinted with permission of the author. The prestigious publishing house, J. Stahl, a converted Jew, was a German legal philosopher at the University of Berlin and a parliamentarian. Stahl studied and wrote about governmental institutions and sought to describe and promote a society of institutions able to achieve a balance between continuity and change.

The monograph was translated much later into English by Martin M. Chemers and published in Foreseeing the future of Germany under Hitler from this and other events, Drucker left for London in where he worked as a journalist and investment-banking analyst. He married Doris Schmitz in London in , whom he first met in Frankfurt. They moved to the United States in that same year. Winston Churchill thought enough of the book to review it for The London Times Literary Supplement and to make it required reading for his officers.

Drucker is one of those writers to whom almost anything can be forgiven because he not only has a mind of his own, but has the gift of starting other minds along a stimulating line of thought. Churchill , p.

The Ultimate Case Study For eighteen months beginning in January , Drucker had an opportunity that made an important impact on his thinking about industrial society, organizations, and individuals.

Donaldson Brown, then an assistant to General Motors chairman Alfred Sloan, invited him to study the structure and policies of the company. In this book Drucker saw that a relatively new institution—the modern corporation—was going to have a major impact on society. Sloan, a genuinely warm human being, was known as a brilliant and effective executive and organizational architect.

He served as a mentor to Drucker. General Motors was formed as a union of separate companies—Chevrolet, Pontiac, Buick, Cadillac, and so on— that had to be brought together, just as the thirteen original US colonies were brought together by the US Constitution. Sloan chose decentralization as the organizational principle and granted autonomy to each company division while maintaining central control. Drucker saw that this resembled the concepts contained in the Federalist Papers, 85 essays written by Alexander Hamilton, James Madison, and John Jay in and promoting the ratification of the US Constitution and supporting the design of national and state governments including an executive, legislative, and judicial function.

Each company managed itself autonomously although certain policies and decisions were reserved for top management central control. Among his recommendations was that GM should go even further in decentralization.

However, the company did not adopt his ideas. Nevertheless, it was evident that Drucker was well on his way to defining the study of the practice of management. The corporation simply could not be ignored because of its impact on the lives of people and society. And this new social institution needed to be integrated with the interests of the individual on the one hand to establish status for people at work and the state on the other to promote a functioning society of organizations thereby establishing function or integration of individuals into society.

At the end of the Korean War, GE anticipated that the move from wartime to peacetime would set off explosive growth in consumer demand.

The question was how could GE best take advantage of that growth? Drucker even called Harold Smiddy the godfather of the book in the preface of the original hardcover volume.

This is the book where Drucker codifies the nuts and bolts of the discipline and practice of management. Drucker considered the practice of management to be among the most significant innovations of the 20th century in the United States, Germany, and Japan. In his final public interview, on December 8, , with Tom Asbrook of National Public Radio, Drucker commented, Management is a new social function that has made possible a society of organizations.

And while business management was the first one to emerge, it is not the most important ones. The most important ones are the management of non-businesses, which made possible a developed society—hospitals, universities, churches.

They are also the more interesting ones because they have to define what they mean by results. In a business, profit and loss determines what is meant by results. What are results of Claremont Graduate University? These are questions that are much more important and much more difficult and much more interesting.

Peter Drucker, as its innovator and chief expounder, is therefore not only one of its most important contributors but one of the most important innovators of the 20th century. Joseph A. March 26,