Principles of Management and Organisational Behaviour MBA First Year Paper No. 1 School of Distance Education Bharathiar University, Coimbatore - 641 046 Author: P G Aquinas Copyright © 2007, Bharathiar University All Rights Reserved Produced and Printed by EXCEL BOOKS PRIVATE LIMITED A-45, Naraina, Phase-I, New Delhi-110028 for SCHOOL OF DISTANCE EDUCATION Bharathiar University Coimbatore-641046 CONTENTS Page No. UNIT -I Lesson 1 Management Science: Theory and Practice 7 Lesson 2 Management and Society 33 Lesson 3 Functions of Management 43 UNIT -II Lesson 4 Organising 61 Lesson 5 Human Factors and Motivation 91 Lesson 6 Leadership and Group Decision Making 103 Lesson 7 Communication 119 UNIT -III Lesson 8 The Process of Controlling 147 Lesson 9 Control Techniques & Global controlling 155 Lesson 10 Directing 161 UNIT-IV Lesson 11 Organisation Behaviour 171 Lesson 12 Personality 186 Lesson 13 Emotions and Emotional Intelligence 202 Lesson 14 Attitudes, Values and Work Ethics 208 Lesson 15 Perception and Learning 226 UNIT-V Lesson 16 Stress 255 Lesson 17 Foundation of Group Behaviour 274 Lesson 18 Organisational Change 292 Lesson 19 Organisational Development 305 Lesson 20 Organisational Culture 326 PRINCIPLES OF MANAGEMENT AND ORGANISATIONAL BEHAVIOUR Number of Credit Hours: 3 Subject Description: This course presents the principles of management, emphasizing managerial functions and behavioural concepts and its practical applications in the organsation. Goals: To enable the students to learn the basic functions, principles, concepts of management and behavioural aspects in the organization.
Objectives: On successful completion of the course the students should have: 1. understood the principles and functions of management. learnt the scientific decision making process and problem solving techniques. learnt modern management process.
learnt behavioural aspects of an individual in the organization. UNIT I Management : Science, Theory and Practice - The Evolution of Management Thought and the Patterns of Management Analysis - Management and Society : Social Responsibility and Ethics - Global and Comparative Management - The Basis of Global Management - Functions of Management-The Nature and Purpose of Planning - Objectives - Strategies, Policies and Planning Premises - Decision Making - Global Planning. UNIT II The Nature of Organizing - Organizational Structure : Departmentation - Line/Staff Authority and Decentralization - Effective Organizing and Organizational Culture - Global Organizing. Co-ordination functions in Organisation - Human Factors and Motivation - Leadership - Committees and group Decision Making - Communication - Global Leading.
UNIT III The System and Process of Controlling - Control Techniques and Information Technology - Global Controlling and Global Challenges - Direction Function - Significance. UNIT IV Organisational Behaviour : History - evoluation, Challenges & opportunities, contributing disciplines, management functions and relevance to Organisation Behaviour. Organizational Behaviour responses to Global and Cultural diversity. Personality - Determinants, structure, behaviour, assessment, psycho-analytical social learning, job-fit, trait theories.
Emotions and Emotional Intelligence as a managerial tool. Attitudes - relationship with behaviour, sources, types, consistancy, work attitudes, values - importance, sources, types, ethics and types of management ethics. Perception - Process, Selection, Organisation Errors, Managerial implications of perception.Learning - classical, operant and social cognitive approaches. Implications of learning on managerial performance.
UNIT V Stress - Nature, sources, Effects, influence of personality, managing stress- Conflict - Management, Levels, Sources, bases, conflict resolution strategies, negotiation. Foundations of group behaviour : team decision making. Issues in Managing teams. Organisational change - Managing planned change.
Resistance to change - Approaches to managing organisational change - Organisational Development - values - interventions, change management- Organisational culture - Dynamics, role and types of culture and corporate culture. UNIT-I LESSON 1 MANAGEMENT SCIENCE: THEORY AND PRACTICE CONTENTS 1.0 Aims and Objectives 1.2 Definition of Management 1.3 Characteristics of Management 1.4 Scope of Management 1.1 Subject-matter of Management 1.2 Functional Areas of Management 1.3 Management is an Inter-disciplinary Approach 1.4 Principles of Management 1.5 Management is an Agent of Change 1.6 The Essentials of Management 1.5 Is Management a Science or an Art? 1.1 What is "Science"? 1.2 What is "Art"? 1.3 Management is both a Science as well as an Art 1.6 Professionalisation of Management 1.7 Evolution of Management Thought 1.1 Pre-scientific Management Period 1.8 Let us Sum up 1.9 Lesson-end Activity 1.11 Questions for Discussion 1.0 AIMS AND OBJECTIVES This lesson is intended to introduce the students and management about fundamental of management and evolution of management thought. After studying this lesson you will be able to: Principles of Management and (i) explain the meaning and characteristics of management. Organisational Behaviour (ii) describe scope of management.
(iii) know the nature of management, i., is it a science or an art. (iv) describe management as a profession. (v) understand evolution of management thought.1 INTRODUCTION Management is a vital aspect of the economic life of man, which is an organised group activity. A central directing and controlling agency is indispensable for a business concern.
The productive resources – material, labour, capital etc. are entrusted to the organising skill, administrative ability and enterprising initiative of the management. Thus, management provides leadership to a business enterprise. Without able managers and effective managerial leadership the resources of production remain merely resources and never become production.
Under competitive economy and ever-changing environment the quality and performance of managers determine both the survival as well as success of any business enterprise. Management occupies such an important place in the modern world that the welfare of the people and the destiny of the country are very much influenced by it.2 DEFINITION OF MANAGEMENT Management may be defined in many different ways. Many eminent authors on the subject have defined the term "management", some of these definitions are reproduced below: According to Lawrence A Appley - "Management is the development of people and not the direction of things". According to Joseph Massie - "Management is defined as the process by which a co- operative group directs action towards common goals".
In the words of George R Terry - "Management is a distinct process consisting of planning, organising, actuating and controlling performed to determine and accomplish the objectives by the use of people and resources". According to James L Lundy - "Management is principally the task of planning, co- ordinating, motivating and controlling the efforts of others towards a specific objective". In the words of Henry Fayol - "To manage is to forecast and to plan, to organise, to command, to co-ordinate and to control". According to Peter F Drucker - "Management is a multi-purpose organ that manages a business and manages managers and manages worker and work".
In the words of J. Schulze - "Management is the force which leads, guides and directs an organisation in the accomplishment of a pre-determined object". In the words of Koontz and O'Donnel - "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". According to Ordway Tead - "Management is the process and agency which directs and guides the operations of an organisation in realising of established aims".
According to Stanley Vance - "Management is simply the process of decision-making and control over the actions of human beings for the express purpose of attaining pre- determined goals". 8 According to Wheeler - "Business management is a human activity which directs and Management Science: Theory and Practice controls the organisation and operation of a business enterprise. Management is centred in the administrators of managers of the firm who integrate men, material and money into an effective operating limit". In the words of William Spriegel - "Management is that function of an enterprise which concerns itself with the direction and control of the various activities to attain the business objectives".
In the words of S. George - "Management consists of getting things done through others. Manager is one who accomplishes the objectives by directing the efforts of others". In the words of Keith and Gubellini - "Management is the force that integrates men and physical plant into an effective operating unit".
According to Newman, Summer and Warren - "The job of management is to make cooperative endeavour to function properly. A manager is one who gets things done by working with people and other resources". According to John F M - "Management may be defined as the art of securing maximum results with a minimum of effort so as to secure maximum results with a minimum of effort so as to secure maximum prosperity and happiness for both employer and employee and give the public the best possible service". In the words of Kimball and Kimball - "Management embraces all duties and functions that pertain to the initiation of an enterprise, its financing, the establishment of all major policies, the provision of all necessary equipment, the outlining of the general form of organisation under which the enterprise is to operate and the selection of the principal officers.
The group of officials in primary control of an enterprise is referred to as management". In the words of E. Brech - "Management is a social process entailing responsibility for the effective and economical planning and regulation of the operations of an enterprise, in fulfilment of a given purpose or task, such responsibility involving: (a) judgement and decision in determining plans and in using data to control performance, and progress against plans; and (b) the guidance, integration, motivation and supervision of the personnel composing the enterprise and carrying out its operations".G Plowman - Management is "a technique by means of which the purpose and objectives of a particular human group are determined, classified and effectuated". According to Mary Cushing Niles - "Good management or scientific management achieves a social objective with the best use of human and material energy and time and with satisfaction for the participants and the public".
From the definitions quoted above, it is clear the "management" is a technique of extracting work from others in an integrated and co-ordinated manner for realising the specific objectives through productive use of material resources. Mobilising the physical, human and financial resources and planning their utilisation for business operations in such a manner as to reach the defined goals can be referred to as "management". If the views of the various authorities are combined, management could be defined as "a distinct ongoing process of allocating inputs of an organisation (human and economic resources) by typical managerial functions (planning, organising, directing and controlling) for the purpose of achieving stated objectives namely – output of goods and services desired by its customers (environment). In the process, work is preformed with and through personnel of the organisation in an ever-changing business environment".
Management is a universal process in all organised social and economic activities. It is not merely restricted to factory, shop or office. It is an operative force in all complex organisations trying to achieve some stated objectives. Management is necessary for a business firm, government enterprises, education and health services, military organisations, 9 trade associations and so on.
Principles of Management and Organisational Behaviour 1.3 CHARACTERISTICS OF MANAGEMENT An analysis of the various definitions of management indicates that management has certain characteristics. The following are the salient characteristics of management. Management aims at reaping rich results in economic terms: Manager's primary task is to secure the productive performance through planning, direction and control. It is expected of the management to bring into being the desired results.
Rational utilisation of available resources to maximise the profit is the economic function of a manager. Professional manager can prove his administrative talent only by economising the resources and enhancing profit. According to Kimball - "management is the art of applying the economic principles that underlie the control of men and materials in the enterprise under consideration". Management also implies skill and experience in getting things done through people: Management involves doing the job through people.
The economic function of earning profitable return cannot be performed without enlisting co-operation and securing positive response from "people". Getting the suitable type of people to execute the operations is the significant aspect of management.