Fundamental of Management and Information System

Fundamental of Management and
Information System
Prepared by
Jitendra Patel
Assistant Professor
PIMR UG Campus

Module 1
1. Management Definition
1.2 Basic Characteristics of Management
2. Emergence of Management Thought
3. Classical School/Thought of Management
4. Administrative Theory of Management (Fayol's Principle)
5. Characteristics of Management
6. The Role of Manager
7. Function of Management
8. Social Responsibilities of Management
9. Ethics in Management
8/23/2019 2Jitendra Patel, Assistant Professor , PIMR

Management Definition
• Management: Management is the process of
reaching organizational goals by working with
and through people and other organizational
resources.
• Management is the process of dealing with or
controlling things or people.
• Management is organization and coordination of
activities to achieve defined objectives.
• Management consist of interlocking functions of
creating corporate policy and organizing,
planning, controlling and directing an
organization’s resources in order to achieve the
objectives of that policy.

Basic Characteristics of Management
• It is a process or series of continuing and
related activities.
• It involves and concentrates on reaching
organizational goals.
• It reaches these goals by working with and
through people and other organizational
resources.

Emergence of Management Thought

Emergence of Management Thought
• 16th century study of low efficiency and
failures of certain enterprises conducted by Sir
Thomas More (1478-1535).

Classical management theory (Fayol and Urwick)
• Henri Fayol (1841–1925) is often described as the ‘father’ of modern
management. He had been managing director of a large French mining
company, and was concerned with efficiency at an organisational level
rather than at the level of the task. Drawing on his experience of what
worked well in an organisation, he developed a general theory of business
administration.
• He first broke management down into five distinct elements:
1. Forecasting and Planning – looking into the future and drawing up
action plans
2. Organising – building up the material and human structure of the
undertaking
3. Commanding – maintaining activity amount personnel
4. Coordinating – unifying and harmonising activity and effort
5. Controlling – ensuring that things conform to rules and instructions
This is a logical, rational and normative analysis of what needs to be done.
But this was not a wholly abstract piece of theorising. Fayol was writing on
the basis of his own, highly practical experience of management. On the
basis of the five elements of management, he then proceeded to identify
what he presented as 14 principles for improving managerial
effectiveness.

• Interestingly, Fayol’s principles share a lot with
those of Lyndall Urwick (1891–1983), an army
officer turned management consultant, who
combined ideas of scientific management and
those of classical organisation theory in his
writings. Like Fayol, he also came up with a list
of general principles for managerial
effectiveness.

Administrative Theory of Management (Fayol's Principle)
(Management Principles developed by Henri Fayol: )
1. DIVISION OF WORK: Work should be divided among individuals and groups to
ensure that effort and attention are focused on special portions of the task. Fayol
presented work specialization as the best way to use the human resources of the
organization.
2. AUTHORITY: The concepts of Authority and responsibility are closely related.
Authority was defined by Fayol as the right to give orders and the power to exact
obedience. Responsibility involves being accountable, and is therefore naturally
associated with authority. Whoever assumes authority also assumes responsibility.
3. DISCIPLINE: A successful organization requires the common effort of workers.
Penalties should be applied judiciously to encourage this common effort.
4. UNITY OF COMMAND: Workers should receive orders from only one manager.
5. UNITY OF DIRECTION: The entire organization should be moving towards a common
objective in a common direction.
6. SUBORDINATION OF INDIVIDUAL INTERESTS TO THE GENERAL INTERESTS: The
interests of one person should not take priority over the interests of the
organization as a whole.
7. REMUNERATION: Many variables, such as cost of living, supply of qualified
personnel, general business conditions, and success of the business, should be
considered in determining a worker’s rate of pay.
8. CENTRALIZATION: Fayol defined centralization as lowering the importance of the
subordinate role. Decentralization is increasing the importance. The degree to
which centralization or decentralization should be adopted depends on the specific
organization in which the manager is working.

14 Principle of Fayol
9. SCALAR CHAIN: Managers in hierarchies are part of a chain like authority scale.
Each manager, from the first line supervisor to the president, possess certain
amounts of authority. The President possesses the most authority; the first line
supervisor the least. Lower level managers should always keep upper level
managers informed of their work activities. The existence of a scalar chain and
adherence to it are necessary if the organization is to be successful.
10. ORDER: For the sake of efficiency and coordination, all materials and people
related to a specific kind of work should be treated as equally as possible.
11. EQUITY: All employees should be treated as equally as possible.
12. STABILITY OF TENURE OF PERSONNEL: Retaining productive employees should
always be a high priority of management. Recruitment and Selection Costs, as
well as increased product-reject rates are usually associated with hiring new
workers.
13. INITIATIVE: Management should take steps to encourage worker initiative, which
is defined as new or additional work activity undertaken through self direction.
14. ESPIRIT DE CORPS: Management should encourage harmony and general good
feelings among employees.

Characteristics of Management
1. Management as a continuous process:
Management can be considered as a process because it consists of planning, organizing,
activating and controlling the resources (personnel and capital) of an organization. So they
are used to the best advantage in achieving the objectives of the organization.
None of the managerial functions would produce the ultimate results in the absence of all
other basic functions. Hence we can say that management is a continuous process.
2. Management as a discipline:
Since the boundaries of management are not exact as that of any other physical sciences, it
may not fit in very well for being addressed as discipline. However its status as a discipline
increases because it continuously discovers many aspects of business enterprises and also
passes on the verified knowledge to the practitioners of the managerial process.
3. Management as a career:
As a career or occupation, management is a broad concept- Management itself can be
regarded as a career, but it also presents a variety of interesting and challenging careers
focused on specialized occupations in the fields such as marketing, finance and personnel.
4. Management as an Applied Science:
Even though management is a science so far as it possesses a systematized body of
knowledge and uses scientific methods of research, it is not an exact science, like natural
sciences which deal with living phenomena such as botany and medicine.
Hence, management is definitely a social science like economics or psychology and has the
same institutions which these and other social sciences have.

5. Universal Application:
Management is a universal activity, applied to any form of activity,
economic or otherwise.
6. Goal Oriented:
Management has the task of attaining certain objectives. The success or
failure of the management depends on how far it is able to attain the
desired goals. It is judged by the extent to which it achieves its targets.
7. Guidance:
The main task of the management is guidance in the utilization of material
and human resources in the best possible way. Through optimum
utilization of resources it has to ensure that the objectives are attained.
The essential element of management is that it gets the work done by
coordinating the performance of those who actually perform diverse and
specific jobs.
8. Divorced from proprietorship:
Management does not signify proprietorship. In earlier days, management
and enterprise were lumped into the same factor. It now refers to a
specialized group of people who have acquired the ability to carry out a
project.

9. An activating factor:
Management is the factor which activates other factors of production. A manager's
skill lies in motivating his workers through guidance, training, incentives, rewards,
status, security, control, etc. So a mangers' ability lies in the fact that he is able to
motivate others to apply their skill to the best advantage of the enterprise in the
accomplishment of its objectives.
10. Management is a human activity:
Management functions are discharged only by individuals. No corporate body or
an artificial being can perform the work of a management. Although it is an
activity which may be performed by an individual it cannot be seen. It can only be
felt.
11. Management signifies authority:
Since the essence of management is to direct, guide and control, it has to have
authority. Authority is the power to compel others to work and behave in a
particular manner. Management cannot discharge its function without authority. It
is the foundation of management. Since management has authority it stands at a
higher pedestal.
12. Leadership:
The management has to lead a team of workers. It must be capable of inspiring,
motivating and winning their confidence.

The Roles of Manager or Management
Mintzberg published his Ten Management Roles in his book, "Mintzberg on
Management: Inside our Strange World of Organizations," in 1990.
The ten roles are:
1. Figurehead.
2. Leader.
3. Liaison.
4. Monitor.
5. Disseminator.
6. Spokesperson.
7. Entrepreneur.
8. Disturbance Handler.
9. Resource Allocator.
10. Negotiator.
From MINTZBERG ON MANAGEMENT by Henry Mintzberg. Copyright © 1989
by Henry Mintzberg. Reprinted by permission of Free Press, a division of
Simon & Schuster, Inc.

The Roles of Manager
The 10 roles are then divided up into three categories, as
follows:
Category Roles
• Interpersonal Figurehead
• Leader
• Liaison
• Informational Monitor
• Disseminator
• Spokesperson
• Decisional Entrepreneur
• Disturbance Handler
• Resource Allocator
• Negotiator

• Interpersonal Category
• The managerial roles in this category involve providing information and
ideas.
• Figurehead – As a manager, you have social, ceremonial and legal
responsibilities. You're expected to be a source of inspiration. People look
up to you as a person with authority, and as a figurehead.
• Leader – This is where you provide leadership for your team, your
department or perhaps your entire organization; and it's where you
manage the performance and responsibilities of everyone in the group.
• Liaison – Managers must communicate with internal and external
contacts. You need to be able to network effectively on behalf of your
organization.
•

• Informational Category
• The managerial roles in this category involve processing
information.
• Monitor – In this role, you regularly seek out information related to
your organization and industry, looking for relevant changes in the
environment. You also monitor your team, in terms of both their
productivity, and their well-being.
• Disseminator – This is where you communicate potentially useful
information to your colleagues and your team.
• Spokesperson – Managers represent and speak for their
organization. In this role you're responsible for transmitting
information about your organization and its goals to the people
outside it.
•

• Decisional Category
• The managerial roles in this category involve using information.
• Entrepreneur – As a manager, you create and control change within
the organization. This means solving problems, generating new
ideas, and implementing them.
• DisturbanceHandler – When an organization or team hits an
unexpected roadblock, it's the manager who must take charge. You
also need to help mediate disputes within it.
• ResourceAllocator – You'll also need to determine where
organizational resources are best applied. This involves allocating
funding, as well as assigning staff and other organizational
resources.
• Negotiator – You may be needed to take part in, and direct,
important negotiations within your team, department, or
organization.

Functions of Management
• These Functions can be summarized below:
• Planning
• Planning is the first tool of the four functions in the management
process. The difference between a successful and unsuccessful
manager lies within the planning procedure. Planning is the logical
thinking through goals and making the decision as to what needs to
be accomplished in order to reach the organizations’ objectives.
Managers use this process to plan for the future, like a blueprint to
foresee problems, decide on the actions to evade difficult issues and
to beat the competition.
• Organising
• The second function of the management is getting prepared, getting
organized. Management must organize all its resources well before in
hand to put into practice the course of action to decide that has been
planned in the base function. Through this process, management will
now determine the inside directorial configuration; establish and
maintain relationships, and also assign required resources.8/23/2019 19Jitendra Patel, Assistant Professor , PIMR

Functions of Management
• Directing
• It involves the implementation of plans by mobilising individuals and
group efforts through motivation, communication, leadership and
supervision. Directing may be defined as the process of activating the
efforts of employees towards the achievement of organisational
objectives.
• Controlling
• It is the process of regulating the ongoing activities of the organisation to
ensure that they are in conformity with the established plans and produce
the desired results. Through the controlling function, management can
keep the organisation o its chosen track. It involves:
• Establishing standards of performance
• Measuring current performance
• Comparing actual results with the established standards
• Detecting deviations from the standards
• Taking corrective actions for significant deviations.
•

Social Responsibilities of Management
Social responsibility is defined as the obligation and commitment of managers
to take steps for protecting and improving society’s welfare along with
protecting their own interest. The managers must have social responsibility
because of the following reasons:
1.
Organizational Resources - An organization has a diverse pool of resources in
form of men, money, competencies and functional expertise. When an
organization has these resources in hand, it is in better position to work for
societal goals.
2.
Precautionary measure - if an organization lingers on dealing with the social
issues now, it would land up putting out social fires so that no time is left for
realizing its goal of producing goods and services. Practically, it is more cost-
efficient to deal with the social issues before they turn into disaster
consuming a large part if managements time.
3.
Moral Obligation - The acceptance of managers’ social responsibility has
been identified as a morally appropriate position. It is the moral
responsibility of the organization to assist solving or removing the social
problems

Social Responsibilities of Management
4.
Efficient and Effective Employees - Recruiting employees becomes
easier for socially responsible organization. Employees are attracted
to contribute for more socially responsible organizations. For
instance - Tobacco companies have difficulty recruiting employees
with best skills and competencies.
5.
Better Organizational Environment - The organization that is most
responsive to the betterment of social quality of life will
consequently have a better society in which it can perform its
business operations. Employee hiring would be easier and
employee would of a superior quality. There would be low rate of
employee turnover and absenteeism. Because of all the social
improvements, there will be low crime rate consequently less
money would be spent in form of taxes and for protection of land.
Thus, an improved society will create a better business
environment.

Management Ethics
• ‘Management Ethics’ is related to social responsiveness of a firm. It is “the
discipline dealing with what is good and bad, or right and wrong, or with
moral duty and obligation. It is a standard of behaviour that guides
individual managers in their works”.
• “It is the set of moral principles that governs the actions of an individual or
a group.”
• Business ethics is application of ethical principles to business relationships
and activities. When managers assume social responsibility, it is believed
they will do it ethically, that is, they know what is right and wrong.
• Though every individual and group has a set of ethical values, the
following guidelines are prescribed by James O’Toole in this regard:
1. Obey the law:
Obeying legal practices of the country is conforming to ethical values.
2. Tell the truth:
Disclosing fair accounting results to concerned parties and telling the truth
is ethical behaviour of managers.
3. Respect for people:
Ethics requires managers to respect people who contact them.8/23/2019 23Jitendra Patel, Assistant Professor , PIMR

Management Ethics
4. The golden rule:
The golden business principle is ‘Treat others as you would want to
be treated’. This will always result in ethical behaviour.
5. Above all, do no harm:
Even if law does not prohibit use of chemicals in producing certain
products, managers should avoid them if they are environment
pollutants.
6. Practice participation – not paternalism:
Managers should not decide on their own what is good or bad for
the stakeholders. They should assess their needs, analyse them in
the light of business needs and integrate the two by allowing the
stakeholders to participate in the decision-making processes.
7. Act when you have responsibility:
Actions which cannot be delegated and have to be taken by
managers only (given their competence and skill) must be
responsibly taken by them for the benefit of the organisation and
the stakeholders.

References
1. “Evolution of Management Concept” retrieved from
https://www.wisdomjobs.com/e university/principles-
of-management-and-organisational-behaviour
tutorial-366/evolution-of-management-thought-
12679.html, Last assessed on 18 August 2019.
2. Harold Koontz, O’ Donnell and Heinz Welhrich,
Essentials of Management, New Delhi, Tata Mc Graw
Hill, 2008.
3. K. Aswathapa, Essential of Business Administration,
Himalaya Publishing House, 2014.
4. Robbins, Stephen P., Fundamentals of Management,
Pearson Education, 2009.
8/23/2019 Jitendra Patel, Assistant Professor , PIMR 25

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