Principles of Management and Organisational Behaviour

Unit 1: Introduction to management: Nature, Scope and significance of management

Managerial Roles- management Skills- Evolution of management thoughts-Approaches to management
Basic concepts of management:
• Organisations have specific goals achieve. They deploy resources – Physical, financial and human – at their
command for achieving the goals. Managers set goals, utilise resources, oversee the work, coordinate the
efforts and produce results.
• Four main managerial functions are a) Planning b) Organising c) Staffing d) Leading and e) Controlling.
Good management is undertaking these five functions effectively and efficiently. Keeping these in mind,
management may be defined as the ‘ force that unifies human as well as non-human resources in the service
of organisational goals. It is a process of getting results with and through people. ( Resources- Relationships-
Results)
Characteristics of Management
• Management is intangible. It is an unseen process. Its presence is felt by the results of its efforts in the form of
production, sales and profits.
• Management is goal –oriented .
• Management is Universal. It is an all pervasive activity.
• Management is social process. Management essentially deals with people.
• Management is a group activity.
• Management is a system of authority.
• Management is one of a number of activities.
• Management is dynamic.
• Management is a science as well as an art.
• Management is multidisciplinary.
Why Management?
According to Peter Drucker, management is a dynamic and life giving element in every organisation. It is the
activating force that gets things done through people.
• Optimum use of resources.
• Effective Leadership and Motivation
• Sound industrial relations.
• Achievement of goals
• Change and growth
• Improvement in standard of living
Fayol’s Principles of Management ( Henri Fayol)
1. Division of Work: Specialisation of labour is necessary for organisational success.
2. Authority: The right to give orders must accompany responsibility.
3. Discipline: Obedience and respect are the two things by which everything else takes place
4. Unity of Command: There can not be too many masters. There can be too many workers. Each employee
should receive orders from only on supervisor.
5. Unity of direction: The efforts of everyone should be coordinated and focused in the same direction.
6. Subordination of individual interests to the general interests.
7. Remuneration: Should be fair and commensurate.
8. Centralisation: the relation between centralisation and decentralisation is a matter of proportion; there
should be optimum balance for each organisation.
9. Scalar Chain: Subordinates must observe the formal chain of command unless expressly authorised
otherwise.
10. Order: Both material things and people should be in their respective places.
11. Equity: Fairness, justice and transparency should culminate in equity.
12. Stability and tenure of personnel: People need time to learn their jobs and get into mainstream.
13. initiative: The golden rule is, ‘To win, you must begin’. Beginning is the most important part of any work…
14. Esprit de corps: Harmonious efforts among individuals is quintessential.
Managerial roles:
Henry Mintzberg identified 10 managerial roles grouped as a) Interpersonal b) Informational and c) decisional
Interpersonal Roles
1. Figurehead: Representing the organisation in formal matters; serving as symbol of the organisation
2. Liaison: Interacting with peers and people outside the organisation; developing external links.
3. Leader: Activities concerned with subordinates; motivating staff’ communicating and directing…
Informational Roles
4. Monitor: Receiving and collecting information: Utilising the channels through which information comes.
5. Disseminator: Transmitting information within an organisation.
6. Spokesperson: Transmitting information to people outside the organisation.
Decisional Roles
7. Entrepreneur: Introducing a change: initiating projects to improve the organisation
8. Disturbance handler: Taking charge when the organisation is threatened.
9. Resource allocator: Deciding where the organisation will expend its efforts and what resources will be
expended.
10. Negotiator: Involving the organisation with other organisations.
( Identify further activities and intervention of managers under each of these 10 roles – what kind of
personality and personal make up you would suggest for each of them)
Functions of Management( P O S L C)
Planning: It is about making decisions for the future. It is the process of determining enterprise objectives and
selecting future courses of actions for their accomplishments. Planning provides direction to enterprise
activities.
Organising: It is concerned with the arrangement of an organisation’s resources – people, materials, technology
and finance- in order to achieve enterprise objectives. It involve decisions about the division of work, allocation
of authority and responsibility, and the coordination of tasks.
Staffing: People form the source of all productive effort in an organisation. It is very important that right kind of
people are selected and nurtured and put to best applications throughout the organisation. Staffing function
includes recruitment, selection, training, development, motivation and compensation.
Recruitment: is the process of attracting the applications for a particular position.
Selection: is the process of screening the candidates and choosing the best ones among them
Training: is imparting the requisite knowledge and skills along with right kind of attitudes.
Compensation: is the return for the services rendered.
Leading and Influencing
Leading is stimulating people to be high performers. It includes motivating and communication with employees,
individually and in groups. Influencing is guiding the activities of organisation in right directions.
• Direction and supervision
• Leadership
• Motivation
• Communication
Controlling
The objective of controlling is to ensure that actions contribute to accomplishment. It helps in keeping the
organisational activities on the right path and aligned with plans and goals.
Levels of management:
1. Top managers : They decide goals, policies and strategies for the entire organisation. They represent their
organisations in community affairs, business deals, and government negotiations.
2. Middle managers : They implement the plans and policies of the Top managers, supervise and coordinate
the activities of the frontline managers.
3. Frontline managers: They are the lower level managers who supervise and coordinate the activities of
operating employees.
It may be noted that the above classification of managers is based on a) Action focus b) Representation and c)
nature of Work.
Managerial Skills : a) Technical Skills b) Human Skills c) Conceptual Skills
Evolution of management Thoughts ( Approaches to management)
The evolution of management thoughts can be traced to various era, perspectives and practices. Prevailing
economical, social, political, environmental Issues and influences may have shaped up management thoughts
from time to time.
1. Classical Management Theory: ( Frederic Taylor, late 19th to early 20th century) – Taylor’s scientific
management theory focused on optimising the efficiency of individual workers and tasks through time and
motion studies. The goal was to select the best one to perform the task.
Administrative Management (Henri Fayol): Fayol emphasised the functions of management by way of
proposing a set of principles (14)
2. Human Relations Movement (1920s-1930s) : The Hawthorne studies were conducted at Western Electric
Hawthorne Works in Chicago between 1924 and 1932. The studies were initiated by Western Electric under the
supervision of Harvard University researchers including Elton Mayo, the Professor.
Hawthorne studies at Western Electric
The genesis of OB lies in the Hawthorne Studies. Series of studies were conducted at
Hawthorne Works of the Western Electric Company, USA in 1924. Studies were conducted to
determine the effect of intensity of light on productivity. The fact that productivity
increased under both conditions of increasing and decreasing intensity of light intrigued the
researchers. Workers’ preferences of factors such as size of group, supervisory behaviour,
earnings, novelty of situation equally contributed to increase in productivity.

 The importance of behavioural factors was discovered for the first time through these
studies. Even where the poor lighting conditions continued, productivity increased with the
presence of favourable behavioural conditions.

 Hawthorne studies led to the human relations movement which started in 1950s.

 Social environment to which people responded came to notice of researchers

It became obvious that people were motivated more by social rather than economic factors
Douglas McGregor and Maslow emerged as proponents of HR movement
Harvard Professor Elton Mayo joined the team in 1927…
Impact of Hawthorne Studies on Organisation Behaviour
• These studies brought to fore the importance of social and psychological factors in work place. Psychological
factors connected with communication, teamwork, employee involvement greatly impact the quality of work,
work output and services.
• The Hawthorne Effect itself became a widely recognised concept. Alteration in employee behaviour under
conditions of being watched and observed caught the attention of dedicated researchers and observers.
• Hawthorne Studies laid the foundation for Human Relations movement.
• It underscored the importance of social and psychological aspects in organisational settings.
3. Behavioural Management: ( 1940s and 1950s)
- Maslow’s Hierarchy of Needs
- Douglas McGregor's theory X and theory Y
4. Management Science: ( 1950s and 1960s): Quantitative Techniques- During this period, the application of
mathematical and statistical methods to management problems gained popularity. Operations research, game
theory and decision theory became important tools in decision making.
5. Contingency Theory: ( 1960s and 1970s): Organisation Contingency Theory: This perspective emphasised that
there is no one-size-fits all solution in management. The effectiveness of management practices depends on the
context and situation.
6. Systems Theory: ( 1960s and 1970s)
System thinking: Management began to be viewed as a system with interconnected and interdependent
components. Understanding organisations as a complex system was accepted as a reality.
7. Total Quality management ( 1980s) Japanese management practices became known and popular in India in
1980s. TQM is one among many such quality management practices. TQM is aimed at continuous improvement,
customer satisfaction, and employee involvement..
8. Strategic management( 1980s – 1990s) : Strategic planning: This practice is beneficial for focusing on long
term goals and competitive advantage. It is involved in analysing the external environment and aligning
organisational resources to achieve strategic goals.
9. Knowledge Management ( 21st Century): With the advent of technology, knowledge management became
important. a ) To improve/enhance performance
b) To adapt to changing market conditions
c) To fall in line customer expectations and aspirations
d) To meet with internal challenges and compulsions
10. Sustainable Management: ( 21st Century): Corporate Social Responsibility: Management thinking is now
on the lines of accepting environmental and social responsibility. Sustainability and ethical considerations have
become integral to managerial decision making.
11. Digital Transformation and Agile management ( 21st Century): The rapid advancement in technology has
transformed the business landscape, leading to focus on digital strategies. Agile management methodologies
development, gained popularity for their flexibility and responsiveness. es, adapted from software