concepto basico del management
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BASIC CONCEPTS of
MANAGEMENT
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Introduction
Management is an important elementin every organiation! It is t"e elementt"at coordinates currents
organiational activities and plans fort"e future!
T"e management adapts t"e
organiation to its environment ands"apes t"e organiation to ma#e itmore suita$le to t"e organiation!
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%efinition
&Management is t"e art of no'ing '"atyou 'ant to do( and t"en seeing t"at it isdone in t"e $est and c"eapest 'ay!
))*!+!Taylor Management as a process &consisting ofplanning, organiing, actuating andcontrolling, performed to determine and
accomplis" t"e o$-ective $y t"e use ofpeople and resources!(
))George .! Terry
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In t"is definition,
Planning means Plan in advance!
Organiing means coordination $et'een
"uman resources and material resources! Actuating means motivation and givingdirection to su$ordinate!
Controlling means to ensure a$out
implementation of plan 'it"out deviation!T"us t"is definition tells t"at management isact of ac"ieving t"e organiationo$-ectives!
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MANAGEMENT */NCTIONS O. T0E
P.OCESS O* MANAGEMENT
Planning, Organiing, 1eading 2 Controlling3Ne'man 2 Summer4
Planning, Organiing, Commanding, Coordinatingand Controlling 30enri *ayol4
5POS%CO.B67 Planning, Organiing, Staffing,%irecting, Coordinating, .eporting 2 Budgeting31ut"er Gulic#4
%ecision Ma#ing, Organiing, Staffing, Planning,
Controlling, Communicating 2 %irecting 3+arren0aynes 2 8osep" Massie4
Planning, Organiing, staffing, directing 2Controlling 39oont O6%onnell4
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*unctions of Management
Planning7: It is a process of deciding t"e
$usiness o$-ectives and c"arting out t"e
plan; met"od for ac"ieving t"e same! T"is
includes determination of '"at is to $edone, "o', and '"ere it is to $e done, '"o
'ill do it and "o' result are to $e
evaluated!
T"is function e
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Organiing
According to Allen, t"e organiing refers to &t"e structured '"ic" results from identifyingand grouping t"e 'or#, defining anddelegating responsi$ility and aut"ority and
esta$lis"ing relations"ips!(To organie a $usiness is to provide it 'it"everyt"ing useful to its functioning i!e!personnel, ra' materials, mac"ineries,
capital etc!Once o$-ectives are esta$lis"ed, manager"as to develop plan to ac"ieve t"em 'it""elp of "uman resources as 'ell asmaterial resources!
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%irecting
%irecting involves communication,leaders"ip and motivation!
Communication is t"e process of passing t"e
information and understanding it from oneperson to ot"er person!
1eaders"ip is t"e function '"ere$y t"eperson or manager guides and influences
t"e 'or# of "is su$ordinates!Motivation is to motivate t"e employee to
give t"eir $est to t"e organiation!
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Controlling
T"e controlling involves:
=! Esta$lis"ing standards of performance!
>! Measuring current performance and
comparing it against t"e esta$lis"edstandard!
?! Ta#ing corrective action t"at does not meett"e standard!
Control compels t"e events to confirm toplans!
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Innovation and .epresentation
T"ese are also t'o important additionalmanagerial functions!
Innovation means crating ne' ideas '"ic"
may eit"er result in t"e development ofne' products or finding ne' uses for olderones! It is necessary to gro' $etter!
T"e manger "as to represent "imself for
t"e organiation! A manger must 'insupport effectively from different groups3eit"er internal or e
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IMPO.TANCE O* MANGEMENT
Management is critical element in t"e
critical gro't" of t"e country!
Management is essential in all organied
effort, $e it $usiness activity or any ot"eractivity!
Management is t"e dynamic, life giving
element in every organiation!
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1E@E1S O* MANAGEMENT
1O+E. 1E@E1 3*I.ST 1INE47 *O.EMEN
2 +0ITE CO11A. S/PE.@ISO.
MI%%1E MANAGEMENT7 SA1ESMANAGE.S, PE.SONNE1 MANAGE.S,
OT0E. %EPA.TMENTA1 0EA%S
TOP MANAGEMENT7 COMPAN
P.ESI%ENTS, EEC/TI@ES, @ICE
P.ESI%ENTS
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MANAGE.IA1 S9I11S
Conceptual
S#ills
0uman
.elation S#ill
Tec"nicalS#ills
Top
Management
Middle
Management
Supervisory1evel
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Evolution of Management T"oug"t
T"e need to study management arose 'it"t"e industrial revolution in Europe 3morespecifically, England4!
T"e industrial revolution and t"e systematicstudy of management are t"e result of aremar#a$le confluence of ideas andevents!
Management and organiations areproducts of t"eir "istorical and social timesand places!
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SCIENTIFIC MANAGEMENT
THEORY
*rederic# +! Taylor, 0enry 1! Gantt, and
*ran# and 1illian Gil$ret" devised t"e $ody
of principles #no'n as scientific
management theory. Taylor $ased "is management system on
production:line time studies! /sing time
study as "is $ase, "e $ro#e eac" -o$ do'n
into its components and designed t"euic#est and $est met"ods of performing
eac" component!
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0e also encouraged employers topay more productive 'or#ers at a"ig"er rate t"an ot"ers, using a
Dscientifically correctD rate t"at 'ould$enefit $ot" company and 'or#er!
T"is system is called Differentia
Rate SystemGantt originated a c"arting system forproduction sc"eduling!
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Every 'or#ers progress 'as rated pu$liclyand recorded on individual $ar c"arts,::in$lac# on days t"e 'or#er made t"estandard, in red '"en "e or s"e fell $elo'
it! Going $eyond t"is!*ran# B! and 1illian M! Gil$ret"colla$orated on fatigue and motion studiesand focused on 'ays of promoting t"e
individual 'or#ers 'elfare! To t"em, t"eultimate aim of scientific management 'asto "elp 'or#ers reac" t"eir full potential as"uman $eings!
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CONTRI!"TIONS OF SCIENTIFIC
MANAGEMENT THEORY
T"e modem assem$ly line pours outfinis"ed products faster t"an Taylor couldever "ave imagined! T"is productionDmiracleD is t"e gift of scientificmanagement!
In addition, its efficiency tec"niues "ave$een applied to many tas#s in non:
industrial organiations, ranging from fast:food service to t"e training of surgeons!
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#IMITATIONS OF SCIENTIFIC
MANAGEMENT THEORY
Taylors system clearly meant t"at time 'asof t"e essence! 0is critics o$-ected to t"eDspeed upD conditions t"at placed unduepressures on employees to perform atfaster and faster levels!
T"e emp"asis on productivityFand, $ye
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C#ASSICA# ORGANI$ATION
THEORY
Cassica organi%ation theory concerneda$out t"e need to find guidelines formanaging comple< organiations suc" asfactories!
0enri *ayol is t"e founder of t"e classicalmanagement t"eory!
*ayol $elieved t"at sound managementpractice falls into certain patters t"at can $e
identified and analyed!*ayol 'as interested in t"e TotalOrganization and focused on management,'"ic" "e felt "ad $een t"e most neglectedof $usiness operations!
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Fayo&s '( )rinci*es of
Management
1. Division of Labor >! Authorit y
3. Discipline !Unity of Comman
!. Unity of Direction H! "emuneration
#.$uborination of %niviual %nterest to theCommon &oo
'. Centralization ! The (ierarchy
1).Orer ==! *+uity
=>! $tability of $taff =?! %nitiative
=! *spirit e Corps
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Contri$ution of Classical
Management T"eory
Before *ayol, it 'as generally $elieved t"atDmanagers are $orn, not made!D
*ayol "o'ever, said t"at management 'asa s#ill li#e any ot"er::one t"at could $etaug"t once its underlying principles 'ereunderstood!
It identified #ey management processes,functions and s#ills!
It focused attention on management as avalid su$-ect of scientific study!
It lead foundation for latter developments inmanagement t"eory!
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1imitations of Classical T"eory
T"is t"eory is more applica$le forsta$le and simple organiations t"antoday6s comple< and dynamic
organiations!T"is t"eory treats employees as aelements rat"er t"an resources!
T"e procedure governed $y t"ist"eory may not $e applica$le incertain situation!
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Be"avioural Management T"eory
Neo Classical T"eory
T"is t"eory puts more emp"asis onindividual6s attitudes, $e"aviours and ont"e group processes! In t"is approac" ofmanagement "uman factor remain central
focus!T"is approac" can $e studied into t'op"ases J
a! 0uman .elation Movement
$! Be"avioural Science Approac"Ma-or contri$utors to t"is approac" 'ereElton Mayo, A$ra"am Maslo' and %ugulasMcgregor
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0uman .elation Movement
0uman relations is freuently used as a generalterm to descri$e t"e 'ays in '"ic" managersinteract 'it" t"eir employees!
+"en Demployee managementD stimulates moreand $etter 'or#, t"e organiation "as effective
"uman relationsK '"en morale and efficiencydeteriorate, its "uman relations are said to $eineffective!
T"e "uman relations movement arose from earlyattempts to systematically discover t"e social andpsyc"ological factors t"at 'ould create effective"uman relations!T"is approac" aims at providing "ig" degree ofsatisfaction and motivation t"roug" improved'or#ing conditions, style of supervision and senseof security!
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Contri$ution of 0uman .elation
Movement
T"is movement t"ro'n lig"t on, anemployee doesn6t 'or# al'ays for moneyonly! Non financial re'ards alsosignificantly affects t"e $e"eviour of t"eemployee!
T"ere is no correlation $et'een improved'or#ing conditions and "ig" production!
T"e informal group and not t"e individual ist"e dominant unit of analysis inorganiations!
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1imitation of t"e 0uman .elations
Movement
T"is approac" over:emp"asies onsym$olic re'ards and underplays t"e roleof material re'ards!
T"is approac" gives more importance toinformal groups $y descri$ing t"em as ama-or sources of satisfaction for individual'or#ers!
T"is approac" is $ased on t"e assumption
t"at satisfied 'or#ers are more productive'or#ers! Attempts to increase output $yimproving 'or#ing conditions and t"e"uman relation s#ills of manager!
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Be"aviourial Science Approac"
T"is approac" is an improved version oft"e "uman relations approac" tomanagement!
%ouglas Mcgregor, A$ra"am Maslo', 9urt
1e'in, C"ester Barnard, Merry *ollett etc!are some of t"e foremost $e"aviourialscientists '"o made significantcontri$utions to t"e development of t"e
$e"aviourial approac" to t"e management!T"is approac" recognies t"e practical andsituational constraints on "uman rationalityfor ma#ing optimal decisions!
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Contd)
To $e"evioural scientists, t"e realistic modelof "uman motivation is comple< man! Itsuggest t"at different people reactdifferently to same situation or react same'ay to different situations!
T"e organiation considered as a groups ofindividuals 'it" certain goals!
It recognies t"at conflict is inevita$le andeven sometimes desira$le and s"ould $efaced 'it" understanding and determination!
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Contri$ution of Be"avioural
Management T"eory
It provides important insig"ts intomotivation, leaders"ip, groupdynamics and ot"er interpersonal
process in organiations!T"is t"eory c"allenged t"e vie' t"atemployees are tools instead
employees are valua$le resources!*ocused managerial attention onemployee related process!
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1imitations of Be"avioural
Management T"eory
Many $evioural concept couldn6t $eapplied in organiational processes$ecause of manager reluctance!
T"e comple< "uman nature cann6t $epredicted!
T"e findings of $e"viuoral science
often could not $e communicated tot"e practicing manager in anunderstanda$le manner!
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System Approac"
T"is approac" is aimed at identifying t"enature of relations"ip among various
components of t"e organiation '"ic" is
considered as larger system!
C"ester Barnard, George 0omans, 0er$ert
Simon etc! are t"e contri$utors in System
Approac"!
T"is approac" gives managers a 'ay ofloo#ing at t"e organiation as a '"ole and
as a part of t"e larger, e
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Contd)
Systems t"eory tells us t"at t"e activity ofany segment of an organiation affects, invarying degrees, t"e activity of every ot"ersegment!
It calls attention to t"e dynamic andinterrelated nature of organiations and t"emanagement tas#!
It provides a frame'or# 'it"in '"ic" 'ecan plan actions and anticipate $ot"
immediate and far:reac"ing conseuences'"ile allo'ing us to understandunanticipated conseuences as t"eydevelop!
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9ey concepts of System Approac"
A system is a set of interdependent parts J An organiation is a system composed offour interdependent parts i!e! tas#,structure, people and tec"nology!
Central to t"e System Approac" is t"econcept of &"olism( J Means no part of t"esystem can $e accurately analyed andunderstood apart from '"ole system!Conversely t"e '"ole system cannot $eaccurately perceived 'it"out understandingall its parts!
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Contd)Synergy J It means t"at as separatedepartments 'it"in an organiationcooperate and interact, t"ey $ecome moreproductive t"an if eac" 'ere to act inisolation!
A system can $e eit"er open or closed J Anopen system interact 'it" its environment! A closed system is independent of t"eenvironment!
Every system "as a $oundary : Eac"system "as a $oundary t"at separates itfrom its environment! In a closed system,t"e system $oundary is rigidK in an opensystem, t"e $oundary is more fle
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Contd)
*lo' : A system "as flo's of information,materials, and energy 3including "umanenergy4! T"ese enter t"e system from t"eenvironment as inputs 3ra' materials, fore
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Contri$ution of System Approac"
System t"eory calls attention to t"edynamic and interrelated nature oforganiations and t"e management tas#!T"us, it provides a frame'or# 'it"in '"ic"'e can plan actions and anticipate $ot"immediate and far:reac"ing conseuences'"ile allo'ing us to understandunanticipated conseuences as t"eydevelop!
+it" a systems perspective, generalmanagers can more easily maintain a$alance $et'een t"e needs of t"e variousparts of t"e enterprise and t"e needs andgoals t"e '"ole firm!
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1imitations of System Approac"
According to some e
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Contingency Approac"
According to t"e contingency approac" t"e
managers tas# is to Identify '"ic"
tec"niue 'ill, in a particular situation,
under particular circumstances, and at particular time, $est contri$ute to t"e
attainment of management goals!
Met"ods and tec"niues '"ic" are "ig"ly
effective in one situation may not 'or# inot"er situations! .esults differs 'it"
situational difference!
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Contri$ution of Contingency
Approac"
Contingency vie's are applica$le in
designing organiational structure, in
deciding t"e degree of centraliation and
decentraliation, in planning informationdecision system, in motivational and
leaders"ip approac"es, in esta$lis"ing
communication and control systems, in
resolving conflicts and managing c"ange,in employee development and training
programmes etc!
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1imitation of Contingency Approac"
It compromise $et'een system approac"and situational factors!
It is totally practical approac" 'it"out
support of t"eoretical and conceptual frame'or#!
Some time manager finds difficulties inanalying t"e situation and discovering
appropriate management tec"niue ina$sence of proper researc" andunderstanding $e"aviour of t"e situation!
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