MANAGEMENT AND BEHAVIOURAL PROCESS

BBA101-1

UNIT - I

INTRODUCTION TO MANAGEMENT AND ORGANISATION BEHAVIOUR

CONTENTS

• Management: Meaning & Definition
• Scope and significance of management
• Managerial Roles and Skills
• Evolution of Management Thought
• Classical, Behavioural and Modern Approach
  • Theories – F.W. Taylor’s Theory of Scientific Management
  • Fayol’s 14 Principles of Management
  • Hawthorne Studies
  • Systems Approach
• Organisational Behaviour (OB) as a systematic study
  • of individual dynamics
  • of group dynamics
  • of organisational dynamics
• Integrating Managerial Functions with OB for workplace effectiveness

DEFINITION OF MANAGEMENT

• Joseph Massie: Management is defined as the process by which a cooperative group directs action towards common goals.
• Henri Fayol: To manage is to forecast and to plan, to organise, to command, to coordinate and to control.
• Peter Drucker: Management is a multi-purpose organ that manages a business, its managers, and its workers and work.
• Koontz and O’Donnell: Management is defined as the creation and maintenance of an internal environment in an enterprise where individuals working together in groups can perform efficiently and effectively towards the attainment of group goals.

PROCESS OF MANAGEMENT

1. Planning: Deciding in advance what is to be done, how it is to be done, and when it is to be done.
2. Organising: Structuring functions and duties to be performed by the group.
3. Staffing: Provides an organization with an adequate number of competent and qualified personnel at all levels in the enterprise.
4. Directing: Motivating, communicating with, and leading subordinates to work with zeal and confidence.
5. Controlling: Constant observation of actual performance so appropriate steps may be taken to ensure conformance with the actual plan.
6. Coordination: Unifying, adjusting, reconciling, and synchronizing individual efforts to accomplish group goals.

SCOPE AND SIGNIFICANCE OF MANAGEMENT

• Optimizes use of scarce resources.
• Ensures effective leadership and motivation.
• Promotes harmony among industrial relations.
• Facilitates the achievement of goals.
• Facilitates change and growth.
• Enhances the quality of life.
• Improves productivity.
• Contributes to organizational competitiveness.
• Develops professionalism.
• Contributes to organizational growth.

MANAGERIAL ROLES

• Leadership: Motivating and inspiring the team to achieve set goals, setting clear direction, fostering a positive work environment, and empowering employees.
• Planning and Organizing: Setting objectives, delegating tasks, ensuring smooth operation.
• Decision-Making: Making sound choices considering both short-term and long-term implications.
• Communication: Clearly communicating goals, expectations, and feedback to team members and superiors.
• Problem-Solving: Identifying and resolving team or project issues.
• Performance Management: Providing coaching and feedback, conducting performance reviews.

MANAGERIAL SKILLS

1. Technical Skills: Ability to perform specific tasks related to a particular field. Essential for lower-level managers supervising core business activities (e.g., software development knowledge for an IT manager).
2. Human (Interpersonal) Skills: Ability to work with, understand, and motivate people. Crucial for middle managers bridging top management and operational staff (e.g., communication, empathy, conflict resolution).
3. Conceptual Skills: Ability to see the organization as a whole, understanding how parts relate to each other and the external environment. Important for top managers setting vision and strategic direction
   • Examples: Strategic planning, problem-solving

THEORIES OF MANAGEMENT: CLASSICAL MANAGEMENT

• Originated in the late 19th and early 20th centuries due to inefficiencies in early factories aimed at streamlining operations and maximizing productivity.

TENETS OF CLASSICAL MANAGEMENT THEORY

1. Hierarchical Structure: Clear chain of command with a leader at the top.
2. Specialisation of Labor: Assigning specific, repetitive tasks to increase efficiency.
3. Scientific Management (F.W. Taylor): Focuses on identifying the most efficient way to complete tasks, breaking tasks down, timing workers, standardizing methods.
4. Administrative Management (Henri Fayol): Emphasizes overall structure and functions, identifying 14 principles of management (planning, organizing, commanding, coordinating, controlling).
5. Motivation Through Incentives: Assumes employee motivation is primarily financial, promoting piece-rate pay.

IMPACT AND CRITICISMS

• Impact: Improved efficiency and productivity in factories.
• Criticisms:
  • Oversimplifies employee motivation (ignores job satisfaction, creativity).
  • Focus on efficiency can dehumanize the work environment.
  • Rigid structure may not be suitable for all modern organizations.

THEORIES – F.W. TAYLOR’S THEORY OF SCIENTIFIC MANAGEMENT

• Developed to improve economic efficiency and labour productivity through systematic analysis and scientific methodology.
• Aimed at replacing traditional work management methods with empirical, standardized approaches.
• Principles influenced modern management practices while emphasizing scientific methods for efficiency.

PRINCIPLES OF TAYLOR'S SCIENTIFIC MANAGEMENT THEORY

1. Science, Not Rule of Thumb: Development of a science for each element of work.
2. Harmony, Not Discord: Scientific selection of workers for efficiency.
3. Division of Work between Managers and Workers: Clear division for efficient execution of tasks.

TECHNIQUES OF SCIENTIFIC MANAGEMENT

• Time and Motion Studies: Analyse time taken and movements to eliminate inefficiencies.
• Standardisation of Tools and Procedures: Ensure consistency and efficiency.
• Functional Foremanship: Workers report to multiple foremen for different aspects.
• Differential Piece-Rate System: Pay structure rewards productivity.

ADVANTAGES OF SCIENTIFIC MANAGEMENT

• Increased productivity and quality of work due to streamlined processes.
• Better training resulting in a skilled workforce.
• Elimination of waste enhances overall efficiency.

CRITICISMS OF SCIENTIFIC MANAGEMENT

• Overemphasis on productivity may exploit workers and neglect their wellbeing.
• Dehumanization of workers can lead to dissatisfaction.
• Standardization can stifle creativity and innovation.
• Focus on immediate gains may overlook long-term sustainability.

FAYOL’S 14 PRINCIPLES OF MANAGEMENT

1. Division of Labor: Specialization of tasks to improve efficiency.
   • Example: Fast food chains role distribution for order taking, burger assembly, etc.
2. Authority and Responsibility: Balance between giving orders and compliance.
   • Example: A manager's order for employees to attend an event and their responsibility to comply.
3. Discipline: Mutual respect must exist for effective discipline.
   • Example: Late employees at a work event violating discipline.
4. Unity of Command: Clear command structure prevents confusion about orders.
   • Example: An employee receiving conflicting orders from multiple bosses.
5. Unity of Direction: All efforts must be directed toward a common goal.
   • Example: Different managers lead production and marketing activities.
6. Subordination of Individual Interest: Company interest over individual interests.
   • Example: Personal events overshadowing company obligations.
7. Remuneration: Fair and equitable salary across similar tasks.
   • Example: Unequal commission rates for the same sales role.
8. Degree of Centralization: Centralization of power minimizes delegation.
   • Example: Small business owners making all the decisions.
9. Scalar Chain: Hierarchical order defines authority.
   • Example: Military ranks reflecting hierarchical structure.
10. Order: Everything and everyone should have a fixed place.
    • Example: Lack of order in a manufacturing workshop leads to inefficiencies.
11. Equity: Fair treatment without favoritism fosters loyalty.
    • Example: Biased task allocation among team members.
12. Stability of Tenure of Personnel: Long-term employment promotes loyalty.
    • Example: Employee awards for longevity fostering job security.
13. Initiative: Ability to develop plans for improvement.
    • Example: A manager proposing cost-reduction strategies.
14. Esprit de Corps: Fostering team spirit for unity and cooperation.
    • Example: Military units thriving on teamwork.

HAWTHORNE STUDIES

• Conducted between 1924 and 1932 at Western Electric in Chicago focusing on human behaviour in the workplace.

KEY ASPECTS OF THE HAWTHORNE STUDIES

1. Background and Purpose: Investigated working conditions on productivity; focused initially on physical conditions.
2. Phases of the Studies:
   • Illumination Studies: Examined impact of lighting on productivity.
   • Relay Assembly Test Room Studies: Manipulated various factors to observe effects on productivity.

KEY FINDINGS

1. Social Factors: Importance of social and psychological dynamics affecting productivity.
2. Employee Participation: Involvement in decisions enhances motivation.
3. Behavioral Management Theory: Importance of recognizing social elements in the workplace.

SYSTEMS THEORY

• Framework from systems science, viewing organizations as composed of interrelated components.

KEY PRINCIPLES OF SYSTEMS THEORY

1. Holistic View: Understand organizations as interconnected wholes.
2. Interconnectedness: Activities in one area can affect others.
3. Open Systems: Organizations interact with their environment, adapting as needed.
4. Feedback Loops: Importance of feedback for improvement.
5. Equifinality: Multiple paths can achieve the same goals.
6. Dynamic Nature: Organizations must adapt continuously.

APPLICATIONS IN MANAGEMENT

1. Strategic Planning: Develop strategies considering interrelated elements.
2. Process Improvement: Identify and resolve inefficiencies through interactivity analysis.
3. Change Management: Manage organizational changes with awareness of broader impacts.
4. Problem-Solving: Diagnose issues through interdependency analysis.
5. Organizational Design: Structure designs that promote interaction.
6. Performance Measurement: Align feedback systems with objectives.

CONTINGENCY THEORY

• Developed mid-20th century emphasizing tailored solutions for management issues.

WHAT IS CONTINGENCY MANAGEMENT THEORY?

• Asserts no single management solution fits all; managerial success is context-dependent.

PROS OF CONTINGENCY THEORY

1. Flexibility: Strategies can adapt to specific situations.
2. Context Sensitivity: Responds to unique challenges effectively.
3. Real-World Application: Aligns with the complexities of business environments.
4. Improved Decision-Making: Analysis leads to informed decisions.
5. Enhanced Adaptability: Flexibility is crucial in dynamic environments.

CONS OF CONTINGENCY THEORY

1. Complexity: Requires extensive understanding of various factors.
2. Uncertainty: Potential for inconsistency in decision-making.
3. Lack of Universal Guidelines: No one-size-fits-all standards may cause confusion.
4. Time-Consuming: Customizing approaches can be resource-intensive.
5. Potential for Bias: Personal biases may impact managerial decisions.

ORGANISATIONAL BEHAVIOUR (OB) AS A SYSTEMATIC STUDY OF INDIVIDUAL

• OB examines individual, group, and organizational influences on behavior, applying structured methods to understand and predict workplace behavior.

KEY ELEMENTS OF OB AS A SYSTEMATIC STUDY OF INDIVIDUALS:

• Evidence-Based Approach: Relies on data and empirical studies.
• Understanding Individual Behaviour: Focuses on perceptions, motivations, personalities, and attitudes to predict behavior.
• Explaining Behaviour: Offers frameworks to explain decision-making and actions.
• Improving Organizational Effectiveness: Tailors policies and fosters a positive environment.

GROUP AND ORGANISATIONAL DYNAMICS

• Refers to interaction patterns among individuals in teams and across organizations, significantly impacting performance and culture.

KEY CONCEPTS OF GROUP DYNAMICS:

1. Group Formation (Tuckman’s Model): Stages - Forming, Storming, Norming, Performing, Adjourning.
2. Roles and Norms: Role distribution and behavioral guidelines.
3. Cohesion: Bond among members influences collaboration.
4. Groupthink: Dissent suppression for harmony can impair decisions.
5. Social Loafing: Reduced effort in group settings compared to individual tasks.

ORGANISATIONAL DYNAMICS

• Complex processes shaping organizational activities, including structures, cultures, and communication flows.

INTERACTION BETWEEN GROUP AND ORGANISATIONAL DYNAMICS

• Group dynamics affected by organizational culture, affecting teamwork and communication.

INTEGRATING MANAGERIAL FUNCTIONS WITH OB FOR WORKPLACE EFFECTIVENESS

• Combining OB insights with planning, organizing, leading, and controlling to enhance productivity and employee satisfaction.

1. PLANNING + OB: Incorporates understanding of employee motivations for realistic goal setting.
   • Example: Aligning incentive structures with motivational theories.
2. ORGANISING + OB: Structures that reflect human behavior and communication facilitate efficiency.
   • Example: Team-based structures for creative tasks.
3. LEADING + OB: Enhances influence through understanding of interpersonal dynamics.
   • Example: Adopting transformational leadership to inspire teams.
4. CONTROLLING + OB: Performance standards guided by behavioral insights motivate employees effectively.
   • Example: Providing constructive feedback focused on behavior to improve performance.

REFERENCES

• Essentials of Management, Harold Koontz, Heinz Weihrich, Mark V. Cannice, Graw Hill 8e, 11/e, 2020.
• Stoner, Freeman, Gilbert Jr. (2014). Management (6th edition), New Delhi: Prentice Hall India.
• Daft, R. L. (2009). Principles of Management (1st edition), Cengage Learning.
• Management Dynamics, R.K.Sharma, Shashi K Gupta, Kalyani Publishers.
• Organisational Behaviour, Shashi K. Gupta & Rosy Joshi, Kalyani Publishers.