Introduction To Business And Management 1

Front 1

What is an organisation?

Back 1

A social entity that provides the necessary structures to achieve specific aims.

Front 2

What is a business?

Back 2

A commercial enterprise or establishment that trades in goods and services

Front 3

What is a business organisation?

Back 3

An entity that is both commercial and social, which provides the necessary structures to achieve the central objectives of trade in goods and services.

We are talking about entities which have an objective of making profits but have a variety of other stake holders.
Therefore management is not an isolated process. No assumptions. No citrus paribus.

Front 4

What is the Definitions of Management

Back 4

Management is deciding what should be done and getting other people to do it. (Stewart)
It is an economic organ, indeed the specifically economic organ of an industrial society. Every act every decision, every deliberation of management has its first dimension an economic dimension (Drucker)

Management is a process which exists to get results by making the best use of the human, financial and material resources available to the organisation and to the manager (Armstrong)
Management is about administration, planning, organizing, commanding, coordinating and controlling (Fayol)

Front 5

Evolution of Management Studies

– Classical Approach

Back 5

Scientific Management (Taylor)
Bureaucracy (Weber)
Fayol’s principles of management

Front 6

What are the Criticisms of Classical Approach

Back 6

- Initiatives are stifled
- Stereotyped behavior as a result of impersonal relationships
- More paper work
- Interdependency

Front 7

What are the Criticisms of Classical Approach

- Human Relations Approach

Back 7

Classical approach looked at the human as a machine. This approach attempts to incorporate the human being.

Is it Classical Approach + Human?

Hawthorne Experiment (Main influence)
Sub Influences – Maslows Hierarchy of needs

Front 8

What are the Criticisms of Classical Approach

- List

Back 8

Criticisms on methodology
Failure to take into account the environmental factors
Not scientific enough and takes a too narrow view (Not taking into account the gender)

Are these criticisms on the approach or the experiment?

Front 9

Evolution of Management Studies

- Systems Approach

Back 9

It combines few key components of both classical and human relations.

Organisations interact with the outside world and hence are open systems.

Decisions have to be made after looking at the influence external environment has on the organisation

Front 10

Evolution of Management Studies

- Contingency Approach

Back 10

- Doesn’t look at one best solution like the scientific management approach.

- Doesn’t believe in one successful prescription like Fayol

- Doesn’t believe in stability like in bureaucracy
It believes that different practices has to be adopted in different scenarios

Front 11

Few other contributors

Back 11

Few others who have done research building on the contingency approach
Mintzberg
Porter
Drucker
Peters and Waterman

Front 12

Key Evaluation Points

Back 12

What are the key management issues which respect to what we learned?
Modern organizations have failed to provide individuals with adequate room for self actualization and creativity
Conflicts are not always undesirable. Not having adequate conflicts can be unhealthy
A structure or style cannot accommodate different levels of ambitions and goals
Modern management is too democratic. Management must return to a more authoritarian attitude.