MANAGEMENT PRINCIPLES & VALUES:

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Concept of
Management

by:-

Ajay Kumar.
Concept of management: Nature

Management is a process of
designing and maintaining
environment in which
individuals working together
in group, efficiently
accomplish selected goals.
This basic definition need to
 Concept of management:
Purpose

2. As managers, people carry the

managerial function of
planning, organizing, staffing,
leading and controlling.

2. Management applies to any

kind of organization.
3. it implies to managers at all
organizational levels.

4. aim of all managers is the

same: to create the surplus.

5. managing is concerned with

productivity; this implies
effectiveness and efficiency.
All manage organizations which
can be defined as a group of
people working together to
create a surplus. In business
organization, this surplus is
profit. In nonprofit organization,
such as charitable organization,
it may be satisfaction of
needs.
 Management is science or
art:-
One of the enduring questions
in the field of management is
whether it is an art or a science.

Webster's College Dictionary

defines an art as "skill in
conducting any human
activity" and science as “any
skill or technique that
reflects a precise application
Reflected in the differences in
these definitions is the use of
precision in science, in that
there is a particular, prescribed
way in which a manager should
act.
Thus, management as a
science would indicate that in
practice, managers use a
specific body of information
and facts to guide their
behaviors, but that
management as an art requires
no specific body of knowledge,
Conversely, those who believe
management is an art are
likely to believe that there is
no specific way to teach or
understand management, and
that it is a skill borne of
personality and ability.
 Those who believe in
management as an art are likely
to believe that certain people
are more predisposed to be
effective managers than are
others, and that some people
cannot be taught to be effective
managers.
That is, even with an
understanding of
management research and an
education in management,
some people will not be
capable of being effective
practicing managers.
 FOUNDATIONS OF THE
MANAGEMENT
AS A SCIENCE PERSPECTIVE:-

Practicing managers who

believe in management as a
science are likely to believe
that there are ideal managerial
practices for certain situations.
That is, when faced with a
managerial dilemma, the
manager who believes in the
scientific foundation of his or
her craft will expect that there
is a rational and objective way
to determine the correct
course of action.
• This manager is likely to follow
general principles and theories
and also by creating and testing
hypotheses

For instance, if a manager has a

problem with an employee's
poor work performance, the
manager will look to specific
means of performance
Many early management
researchers subscribed to
the vision of managers as
scientists.

The scientific management

movement was the primary
driver of this perspective.
Scientific management, pioneered
by Frederick W. Taylor, Frank and
Lillian Gilbreth, and others,
attempted to discover "the one
best way" to perform jobs.

They used scientific processes

to evaluate and organize work so
that it became more efficient and
effective.
Scientific management's
emphasis on both reducing
inefficiencies and on
understanding the
psychology of workers
changed manager and
employee attitudes towards
the practice of management.
 Frederick W. Taylor's
Principles of Scientific
Management :-
1. Managers must study the way
that workers perform their tasks
and understand the job knowledge
(formal and informal) that workers
have, then find ways to improve
how tasks are performed.

2. Managers must codify new

methods of performing tasks into
3. Managers should hire workers
who have skills and abilities
needed for the tasks to be
completed, and should train
them to perform the tasks
according to the established
procedures.

4. Managers must establish a

level of performance for the
 FOUNDATIONS OF THE
MANAGEMENT
AS AN ART PERSPECTIVE:-

Practicing managers who believe in

management as an art are unlikely
to believe that scientific principles
and theories will be able to
implemented in actual managerial
situations. Instead, these managers
are likely to rely on the social and
political environment surrounding
For example, as a contrast to the
example given previously, a
manager who has a problem with an
employee's poor work performance
is likely to rely on his or her own
experiences and judgment when
addressing this issue. Rather than
having a standard response to such
a problem, this manager is likely to
consider a broad range of social and
political factors, and is likely to take
Henry Mintzberg is probably the most
well-known and prominent advocate
of the school of thought that
management is an art.

Mintzberg is an academic researcher

whose work capturing the actual
daily tasks of real managers was
ground breaking research for its
time.
 Mintzberg, through his
observation of actual managers
in their daily work, determined
that managers did not sit at their
desks, thinking, evaluating, and
deciding all day long, working for
long, uninterrupted time periods.

Rather, Mintzberg determined

that mangers engaged in very
fragmented work, with constant
interruptions and rare
Thus, Mintzberg revolutionized
thinking about managers at the
time that his work was published,
challenging the prior notion that
managers behaved rationa and
methodically.

This was in line with the

perspective of management as an
art, because it indicated that
managers did not necessarily have
routine behaviors throughout their
Another scholar that promoted the
notion of management as an art was
David E. Lilienthal, who in 1967 had
his series of lectures titled
Management: A Humanist Art
published.

In this set of published lectures,

Lilienthal argues that management
requires more than a mastery of
techniques and skills; instead, it also
requires that managers understand
individuals and their motivations and
help them achieve their goals.
 Lilienthal believed that combining
management and leadership into
practice, by not only getting work
done but understanding the meaning
behind the work, as effective
managerial behavior.

Thus, he promoted the idea of the

manager as a motivator and
facilitator of others. This manager as
an artist was likely to respond
differently to each employee and
 Another proponent of the
management as art school of
thought is Peter Drucker, famed
management scholar who is best
known for developing ideas
related to total quality
management.
Drucker argues that the
discipline (i.e., the science) of
management attempts to create
 He is critical of the assumptions
that make up the management
paradigm, because these
assumptions change over time as
society and the business
environment change.

Thus, management is more of an

art, because scientific "facts" do not
remain stable over time.
 Management vs
administration:-
• Strategic management process:
Goal setting
Strategic
planning
Strategy formulation

administration
Strategy
implementation
Strategic control
Management:- the process of
planning, decision making,
organizing, leading, and
controlling an organization’s
human, financial, physical and
information resources in an
efficient and effective manner.
• Administration:-
Administration can be defined
as the universal process of
organizing people and
resources efficiently so as to
direct activities toward
common goals and objectives
• Sponsor roles:
Managerial function:
Administrative function:
Leadership function:
Technical function:
 Management Skills:-

In order to perform the functions of

management and to assume
multiple roles, managers must be
skilled.

Robert Katz identified three

managerial skills that are essential
to successful management:
technical skills, human skills,
and conceptual skills.
Technical skill involves
process or technique
knowledge and proficiency.
Managers use the processes,
techniques and tools of a
specific area.
• Human skill involves the
ability to interact effectively
with people. Managers
interact and cooperate with
employees.
Conceptual skill involves the
formulation of ideas.
Managers understand
abstract relationships,
develop ideas, and solve
problems creatively. Thus,
technical skill deals with
things, human skill concerns
people, and conceptual skill
• manager's level in the
organization determines the
relative importance of
possessing technical, human,
and conceptual skills.

• Top level managers need

conceptual skills in order to
view the organization as a
whole.
• Supervisors need technical
skills to manage their area of
specialty.

• All levels of management

need human skills in order to
interact and communicate
with other people
successfully.
• Skills distribution:- SKILLS:

TOP MANAGEMENT CONCEPTUAL

L E V E L S:

MIDLE HUMAN
MANAGENENT

SUPERVISION TECHNICAL

SKILLS DISTRIBUTION AT VARIOUS

MANAGEMENT
LEVELS:-
 As the pace of change
accelerates and diverse
technologies converge, new
global industries are being
created (for example,
telecommunications).

Technological change alters

the fundamental structure of
firms and calls for new
 Organization and its
pervasiveness:-
• Organizations are social units
deliberately constructed and
reconstructed to seek specific
goals. Corporations, armies,
schools, hospitals, churches,
and prisons are included;
tribes, classes, ethnic groups,
friendship groups and families
– 1 Divisions of labor, power,
and communication
responsibilities, divisions,
which are not random or
traditionally patterned, but
deliberately planned to
enhance the realization of
specific goals.
– 2) The presence of one or
more power centers which
control the concerted efforts
of the organization and direct
them toward its goals; these
power centers also must
review continuously the
organization’s performance
and re – pattern its structure,
where necessary, to increase
– 3) Substitution of personnel
i.e., unsatisfactory persons
can be removed and others
assigned their tasks. The
organization can also
recombine its personnel
through transfer and
promotion.)
• The book follows the definition
of organizations as social units
that pursue specific goals,
which they are structured to
serve, under some social
circumstances. Therefore, the
book has three foci:
organizational goals;
organizational structure;
 THE NATURE OF
ORGANISATIONAL GOALS :-
• An organizational goal is the
desired state of affairs, which
the organization attempts to
realize. The organization may or
may not be able to bring about
this desired image of the future.
But if the goal is reached, it
ceases to be a guiding image for
the organization and is
• The real goals of the
organization are those future
states toward which a
majority of the organization’s
means and the major
organizational commitments
of the participants are
directed, and which, in cases
How goals are set: there are
many factors that enter into
the struggle to determine an
organization’s goals.
Organizational departments or
divisions often play a
prominent role in the process.
Personalities are another
important determinant. When a
• The danger of ‘over –
measurement”: Organizations
are constructed to be the most
efficient and effective social
units. The actual effectiveness of
a specific organization is
determined by the degree to
which it realizes its goals. The
efficiency of an organization is
determined by the amount or
• When an organization has a
goal, which is limited and
concrete, it is comparatively
easy to measure effectiveness.
But when we come to
organizations whose output is
not material, statements about
effectiveness are extremely
difficult to validate. The same
problem attends measuring
• The distortion of goals that
arises from over –
measurement of some aspects
of the organizations output to
the detriment of others is a
larger category of distortion
that arise in the relations of
organizations to their goals.
• Distortions due to over
measurement are
comparatively mild, since the
main goals of the organization
remain intact, though certain
aspects of these goals become
over – emphasized at the
expense of other sometimes
more important ones. Goals –
 GOAL MODELS AND SYSTEM
MODELS:-

• The goal model approach

defies success as a complete or
at least a substantial realization
of the organizational goal. It is
not the only means of
evaluating success. Rather
than comparing existing
organizations to ideals of what
 Using a system model we are
able to see a basic distortion in
the analysis of organizations
that is not visible or explicable
from the perspective of goal –
model evaluation.
The latter approach expects
organizational effectiveness to
increase with the assignment of
therefore any theory of
organizations in general must be
highly abstract.
The system model is not free
from drawbacks; it is more
exacting and expensive when
used for research. The goal
model requires that the
researcher determine the goals
the organization is pursuing –
and no more. A well – developed
– An awareness of the needs of
the organization to operate
successfully will guide the
researcher who is constructing
a system model for study of a
specific organization. At
present, organizational theory
is generally constructed on a
high level of abstraction,
dealing mainly with general
The differences among
various organizational types
are considerable Instead of
focusing on goals of the
delivery service
organizations, three indices
were constructed each
measuring one basic element
of the system.
• These were;
• 1) Station productivity.

2) Intra organizational strain

as indicated by the
incidence of tension and
conflict among
organizational subgroups.
 The classical goals theory:

• The Classical administration

theory, presented in works by
Gulick ad Urwick, made the
division of labor its central tenet.
The Classical approach rests
firmly on the assumption that the
more a particular job can be
broken down into its simplest
• The division of labor has to be
balanced by a unity of control.
• The tasks have to be broken up
into components by a central
authority in line with a central
plan of action; the efforts of each
work unit need to be supervised;
and the various job efforts
leading to the final product have
to be coordinated. This leads to a
pyramid of control leading up to
There are one to four basic
principles which propose for
specialized work in the
organization and which will
lead to optimal division of labor
and authority:-
– 1) The first principle stated that
specialization should be by
purpose of the task. Workers
who serve similar goals and
sub- goals in the organization
should be attached to the same
organizational division. There
would be as many divisions in
the organization as there are
– 2) The second principle of
specialization suggests that
all work based on a
particular process should be
grouped together, since it
must share a special fund of
knowledge and requires the
use of similar skills or
– 3) The third principle states
that specialization according to
type of client is another basis
for division of labor.

– 4) The fourth principle says that

jobs performed in the same
geographical
 DECISION – MAKING THEORY :

• The theory of decision – making is a

non- organizational theory that
deals with decisions made by
individuals. Decision – making itself
is divided in a way that makes the
higher- in- rank set the wider policy
lines while the lower echelon
administrators break the policy
down into more detailed decisions.
In this way, the whole organization
can be viewed as an efficient tool,
 – ORGANISATION STRUCTURE :

• The structuralist approach is a

synthesis of Classical school
(formal) and the Human
relations (informal). The
structuralist sees the
organization as a large,
complex social unit in which
many social groups interact.
• Two groups within the
organization whose interests
frequently come into conflict are
management and the workers.
The structuralists attempt to find
some clues to the source of
dissatisfaction of the workers:
1) It is observed that the modern
factory hand is alienated from
his work since he owns neither
the means of production nor
the product of his labor.

2) The worker has little

conception of the whole work
process or of his contribution to
it; his work is meaningless.
• 3) He has little control over
the time at which his work
starts and stops or over the
pace at which it is carried out.
• THE BUREAUCRATIC STRUCTURE :

• The features of the bureaucratic

structure are as follows:-

• 1) It is a continuous organization
of officials bound by rules, which
facilitate standardization and
equality in the treatment of
many cases.
•2) It provides a specific
sphere of competence which
involves:-
• a) a sphere of obligations to
perform functions which have
been marked off as part of a
systematic division of labor,
•b) The provision of incumbent
with the necessary authority
to carry out these functions,
and
• 3) The organization of offices
follows the principle of hierarchy;
each lower office is under the
control and supervision of a
higher one.

• 4) The rules which regulate the

conduct of an office may be
technical rules or norms
• 5) It is a matter of principle that
the members of the
administrative staff should be
completely separated from
ownership of the means of
production or administration.
• The rules which regulate the
conduct of an office may be
technical rules or norms
• 6) In order to enhance the
organizational freedom, the
resources of the organization
have to be freed of any outside
control and the incumbent
cannot monopolize the positions.

• 7) Administrative acts, decisions,

and rules are formulated and
• ORGANISATIONAL CONTROL AND
LEADERSHIP :

• Classification of means of
control: The means of control
applied by an organization can
be classified into three analytical
categories
• a) Physical control: the use of
gun, a whip or a lock, the threat
to use physical sanctions is all
• b) Material control: Material
reward consists of goods and
services. The granting of money,
which allows one to acquire
goods and services, is classified
as material because the effect on
the recipient is similar to that of
material means. The use of
material means for control
• c) Symbolic control: these
include normative symbols, those
of prestige and esteem and
social symbols those of love and
acceptance. The use of symbols
for control purposes is referred to
as normative, normative –
social, or social – power.
.

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