Introduction to Management and Organizational Behavior.

Management

Management is the art of getting work done through people, ensuring satisfaction for the employer, employees, and the public. It involves the use of resources like men, money, materials, and machines to achieve organizational goals. Management is both an art and a science. While science provides knowledge, art deals with the application of that knowledge and skills.

Management is a process that includes planning, organizing, directing, and controlling activities to accomplish organizational goals efficiently and effectively. It is an executive function that actively directs human efforts toward common objectives.

 

Definitions of Management

• Harold Koontz: "Management is the art of getting things done through and with formally organized groups."
• Peter F. Drucker: "Management is a multipurpose organ that manages a business, manages managers, and manages workers and work."
• J. Lundy: "Management is what management does. It is the task of planning, executing, and controlling."
• Lawrence Appley: "Management is the development of people and not the direction of things."
• F.W. Taylor: "Management is the art of knowing what you want to do in the best and cheapest way."

 

Importance of Management

1. Maintains discipline and control over employees.
2. Distributes work and resources for maximum output.
3. Ensures coordination among staff at various levels.
4. Improves efficiency through strict inspection.
5. Suggests new ideas and improvements.
6. Ensures efficient storing and recording.
7. Arranges for scientific payment systems and record-keeping.
8. Develops marketing and publicity strategies.
9. Addresses labor grievances and maintains good human relations.

 

Characteristics of Management

1. Maintains discipline and control.
2. Distributes work for maximum output.
3. Ensures coordination among staff.
4. Improves efficiency through inspection.
5. Suggests new ideas and improvements.
6. Arranges efficient storing and recording.
7. Implements scientific payment systems.
8. Develops marketing and publicity.
9. Addresses labor grievances and studies employee psychology.

 

Five M's of Management

1. Money: Used to acquire other resources and generate profits.
2. Manpower: Managerial and non-managerial personnel who mobilize resources.
3. Materials: Raw materials and intermediate products converted into finished goods.
4. Machinery: Equipment used to process materials and improve output quality.
5. Method: Efficient ways of getting things done, focusing on time and cost efficiency.

 

Functions of Management

1. Planning:
• Deciding what to do, how to do it, and who will do it.
• Involves setting objectives, policies, and strategies.
• Example: Increasing sales through advertising and inventory management.
2. Organizing:
• Assigning work and granting authority.
• Steps include identifying work, classifying it, assigning tasks, delegating authority, and coordinating activities.
3. Coordination:
• Integrating activities to achieve common goals.
• Ensures unity of action among employees and departments.
4. Controlling:
• Monitoring performance and correcting deviations.
• Steps include setting standards, measuring performance, finding variances, and taking corrective action.

 

Types and Structure of Industrial Organization

1. Line Organization:
• Simplest and earliest form of organization.
• Authority flows from top to bottom.
• Types:
• Pure Line Organization: All workers perform the same tasks.
• Departmental Line Organization: Divided into departments for control.

Advantages:

• Quick decisions and communication.
• Strong discipline and industrial peace.
• Simple and flexible structure.

Disadvantages:

• Lack of specialization.
• Overburdening of executives.
• Limited scope for research and improvement.
1. Functional Organization:
• Duties are assigned based on functions.
• Each function is controlled by a specialist.
• Example: Separate heads for production, sales, and finance.

Advantages:

• Encourages specialization.
• Reduces wastage and accidents.
• Scope for research and growth.

Disadvantages:

• Lack of coordination and discipline.
• Confusion among workers.
2. Line and Staff Organization:
• Combines line and functional organizations.
• Line executives execute policies, while staff specialists provide advice.

Advantages:

• Encourages research and specialization.
• Reduces burden on line executives.

Disadvantages:

• Expensive and suitable only for large organizations.
• Potential conflicts between line and staff.

 

Human Relations

Human relations refer to the study of relationships between individuals in an organization. Good human relations are essential for industrial peace, productivity, and employee satisfaction.

Necessity of Human Relations

• Reduces industrial disputes.
• Provides mental satisfaction to employees.
• Improves product quality and reduces costs.
• Enhances resource utilization and reduces accidents.

 

Behavioral Science

Behavioral science studies human behavior and its impact on organizational performance. It focuses on understanding individual and group behavior.

Individual Behavior

• Influenced by physical, intellectual, and situational factors.
• Key variables include temperament, experience, and personality.

Group Behavior

• Groups form based on common objectives and interactions.
• Group behavior can be beneficial or detrimental to the organization.

 

Industrial Disputes

Industrial disputes arise due to conflicts between employers and employees over wages, working conditions, or employment terms. Common causes include:

• Psychological factors (e.g., clash of personalities).
• Institutional factors (e.g., non-recognition of unions).
• Economic factors (e.g., wages, working hours).

Methods of Resolving Disputes

• Strikes: Workers stop work to pressure employers.
• Picketing: Workers parade with banners to publicize disputes.
• Gherao: Workers confine employers to their offices.

 

Wages

Wages are payments made to workers for their services. Types of wages include:

1. Nominal Wages: Cash payments without additional benefits.
2. Real Wages: Total payments including cash and facilities.
3. Living Wages: Wages that meet basic needs and social requirements.
4. Minimum Wages: Wages sufficient for basic necessities.
5. Fair Wages: Wages between minimum and living wages, determined by collective bargaining.

 

Career Development

Career development involves tracking career paths and helping individuals achieve their goals. It includes:

1. Exploration: Forming career expectations.
2. Establishment: Searching for work and getting a first job.
3. Mid-Career: Transitioning to greater responsibilities.
4. Late Career: Enjoying the role of an elder statesman.
5. Decline: Preparing for retirement.

 

Human Resource Development (HRD)

HRD focuses on developing employee capabilities and organizational culture. Key mechanisms include:

• Performance appraisal.
• Feedback and coaching.
• Career planning.
• Organization development.
• Training and development.

 

Training and Development

Training prepares employees for specific roles and keeps them updated with technological advancements. It is essential for:

• Improving skills and efficiency.
• Adapting to new methods and technologies.
• Enhancing employee performance and productivity.