UNIT – 1 CONCEPT AND EVOLUTION OF MANAGEMENT

Meaning:
Management refers to the process of planning, organizing, coordinating, and overseeing
tasks, resources, and people within an organization to achieve its goals effectively and
efficiently. It involves making decisions, setting objectives, allocating resources, and guiding
individuals or teams to work together harmoniously to accomplish desired outcomes.
Definition:
In the words of Koontz, “Management is the art of getting things done through the efforts of
other people”.
In the words of McFarland, “Management is defined for conceptual, theoretical, and
analytical purposes as that process by which managers create, direct, maintain and operate.
purposive organizations through systematic, coordinated, cooperative human efforts”.

Why Management is called a Process:

The management is referred as process because the set of activities and actions that managers
undertake to plan, organize, lead, and control the resources of an organization in order to
achieve its goals and objectives. It involves a series of interconnected steps that are designed
to help an organization function efficiently and effectively. The management process
typically includes the following key steps:
1. Planning: The first phase in the management process is this. Managers establish the
aims and objectives of the organization, choose the methods and techniques to achieve
them, and create strategies for allocating resources and coordinating activities.
Planning offers a road map for upcoming actions and aids in defining the
organization's direction.
2. Organising: After the plans are made, managers put people, materials, equipment,
and finances into order to carry them out. To make sure that everyone is aware of their
duties and how they fit into the bigger picture, this phase entails establishing
communication channels, assigning tasks and responsibilities, and constructing
organizational structures.
3. Leading: Leadership entails directing and inspiring others to contribute to the
accomplishment of organizational objectives. Communication, inspiration, decision-
making, and dispute resolution are all included in this step. A leader who is effective
will see to it that their team members are cooperative and committed to the
organization's goals.

4. Controlling: Controlling involves keeping track of and assessing how well activities
are going in relation to the specified goals and plans. Corrective steps are made to get
things back on track if there are deviations from the plans. Controlling enables
managers to find issues, evaluate performance, and make necessary corrections.
 5. Coordinating: Within an organization, coordinating is the activity of synchronizing
and aligning numerous tasks and activities across distinct teams or departments. The
optimal use of resources, the reduction of redundancies, and the seamless exchange of
information and communications are all ensured by effective coordination.
6. Decision-making: Making decisions is a crucial step in the management process.
Managers base their choices on data, analysis, and their own discretion. These choices
can be made in relation to problem-solving, changing strategies, allocating resources,
and more.
7. Communicating: In the management process, communication is essential. Goals,
expectations, feedback, and other crucial information must be successfully
communicated to employees and other stakeholders by managers. A shared
understanding and alignment are fostered by clear communication.
8. Adapting and Innovating: The management process also requires being flexible and
creative in today's dynamic company environment. Managers must be willing to
modify their tactics and techniques in response to changes in the market, industry
trends, and technological breakthroughs.

Management as Science and Art

Management is frequently referred to as both a science and an art. This viewpoint
acknowledges that good management necessitates a blend of methodical knowledge and
creative abilities.
Management as Science:

Management, as a science, entails applying understanding, concepts, and procedures to

analyze and solve complex problems connected to organizational functioning.
Management has a structured body of knowledge with universal truths, principles, and cause
and effect relationships.
Management as an Art:
Management as an art is the skilful and personal application of existing knowledge to achieve
desired results. It requires creativity, intuition, and the ability to adapt to changing
circumstances. Managers must be able to motivate and inspire their team members, build
relationships, and resolve conflict. They must also be able to think strategically and make
sound decisions under pressure.

Management is Both Science & an art

Management is in fact a combination of science and art. To negotiate the intricacies of the
corporate world, effective managers rely on both methodical approaches and original insights.
They require the artistry to lead and motivate teams, adapt to change, and promote a positive
 organizational culture. They also need to apply scientific approaches to data analysis and
decision-making.
The most effective managers are those who can strike a balance between these two elements,
utilizing the existing scientific information and methodologies while also incorporating their
unique leadership style and adaptability to successfully lead their teams and organizations.

Management as a Profession:
Management is often referred to as a profession because it shares several key characteristics
with other established professions, such as law, medicine, and engineering. This involves
specialized knowledge, Formal education and training, code of conduct, service orientation,
professional associations. “Management cannot be a Family Management”
Administration vs. Management – Differences

S Items Administration Management

L
No
1. Definition The process of administering An organized systematic manner of
an organization by a group managing resources,
of people is known as the people, technology within the
Administration. organization to ensure effective
utilization of resources
is called management.
2 Authority Top-level Low-level and middle-level employees.

3 Organizational Downward Communication Upward Communication

communication
5 Applicable to Bureaucratic Government Private sector and profit-making
offices, military, clubs, organizations, business organizations
enterprises, hospitals, religious
and educational organizations,
and business
6 Work Formulation of organizational Implementing policies into actions,
plans, creating overall policies, creating short term objectives
and setting goals, long-term

7 Function Legislative and Determinative Executive and Governing

Skills required by a Manager
1.Leadership: The ability to inspire and guide others towards a common goal, provide clear
direction, and make informed decisions.
2.Communication: Effective communication skills are crucial for managers to convey
information, instructions, and expectations clearly and accurately. They should also be good
listeners and encourage open dialogue.
3.Problem Solving: Managers need to be able to identify and analyse problems, develop
effective solutions, and make decisions under pressure. Critical thinking and analytical skills
are valuable in this regard.
4.Decision Making: Managers must be able to make timely and informed decisions based on
available information and considering the potential impact on the organization. They should
also be able to involve others in the decision-making process when necessary.
5.Team Building: Managers should possess skills in creating and nurturing a cohesive and
high-performing team. This includes recruiting, training, and developing employees, as well
as fostering a positive work culture and resolving conflicts.
6.Time Management: Managers must be skilled at prioritizing tasks, setting deadlines, and
managing their own time effectively. They should also be able to delegate responsibilities and
ensure that work is completed efficiently.
7.Adaptability: Managers need to be flexible and adaptable in response to changes in the
business environment. They should be open to new ideas, technologies, and approaches, and
able to lead their team through transitions.
8.Emotional Intelligence: Managers with high emotional intelligence can understand and
manage their own emotions, as well as recognize and respond effectively to the emotions of
others. This skill helps build strong relationships and resolve conflicts.
9.Ethical Conduct: Managers should demonstrate integrity, fairness, and ethical behaviour
in all aspects of their work. They should serve as role models for their team and uphold
ethical standards in decision making.

Along with these routine natured skills managers should also have the below skills:
a) Conceptual skills
b) Technical skills
c) Human Relation skills

Conceptual skills: This refers to the ability of a manager to take a broad and farsighted view
of the organisation and its future, his ability to think in abstract, his ability to analyse the
forces working in a situation, his creative and innovative ability and his ability to assess the
environment and the changes taking place in it. In short, it is his ability to conceptualise the
environment, the organisation, and his own job, so that he can set appropriate goals for his
organisation, for himself and for his team. This skill seems to increase in importance as a
manager moves up to higher positions of responsibility in the organisation.

The Technical skill: It is the manager's understanding of the nature of job that people under
him have to perform. It refers to a person's knowledge and proficiency in any type of process
or technique. In a production department, this would mean an understanding of the
technicalities of the process of production. Whereas this type of skill and competence seems
to be more important at the lower levels of management, its relative importance as a part of
the managerial role diminishes as the manager moves to higher positions. In higher functional
positions, such as the position of a marketing manager or production manager, the conceptual
component, related to these functional areas becomes more important and the technical
component becomes less important.

Human relations: This skill is the ability to interact effectively with people at all levels. This
skill develops in the manager sufficient ability (a) to recognise the feelings and sentiments of
others (b) to judge the possible reactions to, and outcomes of various courses of action he
may undertake and (c) to examine his own concepts and values which may enable him to
develop more useful attitudes about himself. This type of skill remains consistently important
for managers at all levels.

Levels of Management
1. Top-Level Management:

Top-level management consists of senior executives and top leaders in an

organization, such as CEOs, presidents, and executive vice presidents. They are
responsible for setting the overall direction and vision of the organization, defining its
mission and strategic objectives, and making high-level decisions. Top-level managers
typically focus on long-term planning, shaping the organization's culture, and
representing the company to external stakeholders like investors and the public. They
play a critical role in shaping the organization's strategic priorities and ensuring its
success in the long run.
2. Middle-Level Management:
Middle-level management comprises departmental or divisional managers, such as
regional managers, plant managers, or department heads. They bridge the gap
between top-level management and front-line employees. Middle managers translate
the organization's strategic goals into actionable plans and objectives for their
respective departments or units. They are responsible for coordinating resources,
supervising teams, and ensuring that their teams meet their targets and goals. Middle
managers also play a key role in communication, relaying information from top
management to employees and vice versa
 3. Lower-Level Management:
Bottom-level management, often referred to as first-line or front-line management,
includes downline staff, operational workers, and daily wage workers. These
employees are directly responsible for overseeing the day-to-day operations and
activities. They focus on executing the plans and strategies developed by top and
middle-level management their role is critical in maintaining operational efficiency,
quality control, and addressing immediate issues that arise during regular operations.

Overview of Functions of Management:

Planning: The first and the most important function of management is Planning. Planning
involves setting objectives in advance, a goal which is to be achieved within a stipulated
time. Various alternatives are formulated in order to achieve the goals. The best alternative
courses of action is then selected which will help the organization to achieve its objectives.
Planning is the most basic function of management. It is deciding in advance what to do and
how to do when to do and by whom it is to be done. It bridges the gap between where we are
and where we want to go. All the other functions of management like organising, staffing,
directing, controlling are dependent on planning. Planning is related to future and is a
continuous process. All the organisation have to make a concrete plan before they start
business or execute any project.

Organizing: After planning the next function of management is organising. Organising

involves division of work among people whose efforts must be coordinated to achieve
specific objectives and to implement pre-determined strategies. It is the backbone of
management. After the objectives of an enterprise are determined and the plan is prepared,
the next step in the management process is to organize the activities of the enterprise.

Staffing: After planning and organizing the next function of management is ‘Staffing’. It is
important to have a good organization structure, but it is even more important to fill the jobs
with the right people. Filling and keeping the position provided for by the organization
structure with right people at the right place is the staffing phase of the management function.
All the managers have a responsibility for staffing. The staffing function deals with the
human elements of management. The staffing function has assumed great importance these
days because of rapid advancement of technology, increasing size of organizations and
complex behaviour of human beings.
Directing: It is the function of guiding and overseeing employees' work to ensure that they
are working toward the organization's goals. It involves communicating expectations,
providing instructions, and motivating employees to achieve their best performance. Effective
directing fosters teamwork and alignment with organizational objectives.
Controlling:
Controlling involves monitoring and evaluating ongoing activities and results to ensure they
align with established plans and standards. It includes measuring performance, comparing it
to objectives, and taking corrective actions when necessary. This function helps maintain
consistency and accountability within the organization, ensuring that it stays on course to
achieve its goals.

Approaches to management:
When Industry revolution started there was actually a dilemma that how we should do
business or how we need to run an organization in a systematic way. Lot of authors
contributed to the field of management but never succeeded 100% so it was FW Taylor who
first came with right ideas for that particular situation.
a) Early Classical Approach
b) Neo-Classical Approach

Early Classical approach

a) Scientific Management
b) Administrative Management

Neo Classical approach

a) Human relations
b) Behavioural approach

Scientific Management:
Frederick Winslow Taylor (1856-1915) is considered to be the Father of Scientific
Management. He exerted a great influence on the development of management thought
through his experiments and writings. During his career spanning a period of 26 years, he
conducted a series of experiments in three companies: Midvale Steel, Simonds Rolling
Machine and Bethlehem Steel. While serving as the Chief Engineer of Midvale Steel
Company, Taylor made several important contributions which are classified under
scientific management.
Principles of Scientific Management
1. Science, Not Rule of Thumb
Taylor emphasized that decisions and practices should be
based on systematic observations, measurements, and
analysis rather than relying on intuition or tradition.
Scientific methods should be used to determine the best way
to perform tasks.

2. Harmony, Not Discord

Taylor indicated and believed that the relationship between the workers and
management should be cordial and completely harmonious. The difference between
the two will never be beneficial to either side. Management and workers should
acknowledge and understand each other’s importance. Taylor also suggested a mental
revolution for both management and workers to achieve total harmony.

3. Cooperation, Not Individualism

Cooperation between managers and employees is of great
significance. Instead of internal competition, businesses
should make an effort toward collaboration. This change
in workplace dynamics can lead to increased profits as
people will work together to maximize efficiency. A few
things to note are:
- Everyone Should Consider One Another to Be an
Important Contributor to the Organization.
- Efforts Should Be Made to Reduce Any Friction Between Employees and
Employers.

4. Mental Revolution
Taylor realized that there should be a complete
change in outlook, both from management and
employees, to improve organizational efficiency.
Change in attitude and behaviour towards each other
is instrumental in rolling things out in a time-
efficient manner. Here’s how employees and
employers can change things:
- Employees and Employers Need to Recognize Each Other’s Efforts and Should
Work Toward a Mutually Beneficial Relationship.
- Employees Should Utilize Available Resources and Perform Their Jobs with
Attention and Dedication; Increased Remuneration Should Act as an Incentive to
Boost Productivity.
5. Optimum Output
 An organization’s effectiveness also relies on the personal interests, skills, and
abilities of employees. Implementing, training, and learning best practices will
maximize output. In addition to training, organizations should:
- Follow The Principle of Maximum Output Instead of Restricted Output and Focus
on Maximizing Prosperity for Both Managers and Employees.
- Help Employees Utilize Available Resources to Gain Higher Profits and Wages

Fayol’s Administrative Management

While taylor is considered as father of scientific management here Henry Fayol is considered
as father of administrative management, He is a French management theorist, focused on the
broader aspects of organizational management. He identified five key functions of
management: planning, organizing, commanding, coordinating, and controlling.

14-Principles of Management
1. Division of Labor: Division of labor involves breaking down tasks and
responsibilities into smaller, more specialized components. Specialization allows
employees to become experts in their specific roles, leading to increased efficiency
and productivity. This principle also helps in the allocation of responsibilities based
on individual capabilities and skills.
2. Authority and Responsibility: Authority is the right to give orders and make
decisions, while responsibility is the obligation to perform assigned tasks. Fayol
emphasized that authority should be commensurate with responsibility to ensure
accountability and effective decision-making.

3. Discipline: Discipline entails adherence to organizational rules, policies, and

procedures. It ensures that employees behave in a manner that aligns with the
organization's goals and values. Discipline is crucial for maintaining order and
harmony within the workplace.
4. Unity of Command: Unity of command means that each employee should have only
one direct supervisor or manager. This principle prevents confusion and conflicting
directives, ensuring clear lines of authority and accountability.
5. Unity of Direction: Unity of direction emphasizes the importance of having a single,
coordinated plan of action for all activities that share the same organizational
 objective. It ensures that everyone is working toward the same goal, minimizing
duplication of efforts.
6. Subordination of Individual Interests: This principle suggests that individual
interests and desires should be subordinate to the collective interests of the
organization. It encourages employees to prioritize the overall well-being of the
company over personal interests.
7. Remuneration: Remuneration involves fairly compensating employees for their
work. Fayol believed that compensation should be equitable and based on factors like
skills, performance, and market rates to ensure employee satisfaction and motivation.
8. Centralization: Centralization refers to the concentration of decision-making
authority at the top levels of the organization. The extent of centralization can vary
based on the organization's size and complexity. It determines who has the final say in
decision-making.
9. Scalar Chain: The scalar chain represents the hierarchy of authority within an
organization. It outlines the formal lines of communication and decision-making from
top management to lower levels. Effective communication and adherence to this chain
are crucial for smooth operations.
10. Order: “Right place for everything and for every man” The principle of order
emphasizes the importance of having a place for everything and everything in its
place. Organized workplaces and processes enhance efficiency and productivity by
reducing wasted time and effort searching for things.
11. Equity: Equity involves fairness and justice in dealing with employees. Managers
should treat all employees impartially and without favouritism, fostering a positive
work environment and trust.

12. Stability of Tenure: This principle advocates for minimizing employee turnover and
promoting job stability. It recognizes that a stable workforce is generally more
productive and efficient as experienced employees contribute to organizational
knowledge and consistency.
 13. Initiative: Fayol encouraged employees to take initiative and suggest improvements
or innovations. Recognizing and encouraging employee initiative can lead to
increased creativity and problem-solving within the organization.
14. Esprit de Corps: Esprit de corps means the spirit of teamwork and unity among
employees. Building a sense of camaraderie and cooperation within the workforce can
lead to higher morale, productivity, and overall organizational success.

Neo-Classical Approach
a) Human Relations movement
These approaches are called Neo-Classical because they do not reject the classical concepts
but only try to refine and improve them.

Maslow’s Hierarchy of Needs

Physiological needs – Food water, warmth and rest
Safety needs – Security, Protection
Belongingness and Love needs – Friends and Partners of our life
Esteem Needs – Respect
Self-actualisation - “to become everything one is capable of becoming”. Here we think what
can I do for others?

Introduction:
 Maslow's hierarchy illustrates an individual's inherent desire to be “self-actualised “,
which is when he can use his talents and capacities to the fullest.
 Maslow’s hierarchy of needs is a motivational theory in psychology comprising a
five-tier model of human needs, often depicted as hierarchical levels within a
pyramid.
 The five levels of the hierarchy are physiological, safety, love/belonging, esteem, and
self-actualization.
 Higher needs become increasingly psychological and long-term rather than
physiological and short-term, as in the lower survival-related needs.
Maslow's Hierarchy of Needs Theory, developed by Abraham Maslow in the 1940s and
1950s, is a psychological and motivational theory that seeks to understand human motivation
and the hierarchy of human needs. This theory suggests that people are driven to fulfil a set of
basic needs in a specific order, starting with the most fundamental and progressing to higher-
level needs as lower-level needs are satisfied. Maslow's hierarchy is often depicted as a
pyramid with five levels, each representing a different category of needs. Here's an
explanation of each level:
1. Physiological Needs: These are the most basic and fundamental human needs
necessary for survival. They include necessities such as air, water, food, shelter, sleep,
and basic clothing. If these needs are not met, they take precedence over all other
needs, and a person's primary focus will be on satisfying them.
2. Safety Needs: Once physiological needs are met, individuals seek safety and security.
This includes physical safety (protection from harm and danger), financial security
(job security, savings, insurance), health security, and a stable and predictable
environment. People need to feel secure in their lives to move on to higher-level
needs.
3. Love and Belongingness Needs: After safety needs are satisfied, humans seek social
and emotional connections. This level encompasses the need for love, friendship,
intimacy, and a sense of belonging to a group or community. It includes both giving
and receiving love and support from others, whether through family, friendships, or
relationships.
4. Esteem Needs: Once the lower-level needs are met, individuals strive for self-esteem
and self-respect. This includes both self-esteem (confidence and belief in one's
abilities) and the esteem of others (recognition, respect, and admiration from peers).
Achievement, recognition, and a sense of accomplishment are key motivators at this
stage.
5. Self-Actualization Needs: At the top of the hierarchy, self-actualization represents
the pursuit of personal growth, creativity, self-fulfilment, and the realization of one's
full potential. It involves pursuing meaningful goals, engaging in personal
development, and seeking to become the best version of oneself.

Theory X and Theory Y

Introduction:
Theory X and Theory Y are the theories of motivation given by Douglas McGregor in 1960’s.
These theories are based on the premise that management has to assemble all the factors of
production, including human beings, to get the work done. McGregor believed that
management can use either of the needs to motivate his employees, as grouped under theory
X and theory Y.
Theory X:
Theory X relies on the authoritarian style of management, where the managers are required to
give instructions and keep a close check on each employee. As it is assumed, the employees
are not motivated, and they dislike working.
Management Approach: Managers who adhere to Theory X tend to adopt an authoritarian
leadership style They believe in controlling employees through strict rules, supervision, and a
focus on punishment to ensure that employees meet their performance expectations.
Implications: Theory X management can lead to low employee morale, reduced motivation,
and a lack of job satisfaction. It often results in a hierarchical organizational structure with
limited opportunities for employee growth and innovation.
Theory Y:
Theory Y relies on the participative style of management, where the managers assume that
the employees are self-directed and self-motivated to accomplish the organizational
objectives. Thus, here the management attempts to get the maximum output with the least
effort on their part.
Management Approach: Managers who embrace Theory Y adopt a participative leadership
style. They empower employees, involve them in decision-making, and encourage creativity
and innovation. Theory Y assumes that employees can be trusted and that they seek
opportunities for self-improvement.
Implications: Theory Y management often leads to a more motivated and engaged
workforce. It promotes a flatter organizational structure with opportunities for employee
development and advancement.