I SEMESTER BBA
BUSINESS MANAGEMENT COURSE CONTENTS
UNIT 1 INTRODUCTION TO MANAGEMENT 10 Hours Evolution of management
thought: Classical School of thought (Contributions of Taylor and Fayol) – Neoclassical
School – Human Relations Approach (Hawthorne Experiments) and Behavioural Science
Approach (brief outline) – Modern Management Theory - Quantitative Approach, Systems
Approach and Contingency Approach. Nature and significance of management - Managerial
roles - Mintzberg - An overview of functional areas of management - Principles of
Management – Managerial skills set - Types of Business, CSR.
UNIT 2 PLANNING, FORECASTING AND DECISION MAKING 08 Hours Planning:
Concept, process and objectives – Types of plans – MBO & MBE, Corporate planning:
Environment analysis and diagnosis. Forecasting: Meaning and purpose of forecasting –
Techniques of forecasting - Qualitative and quantitative Decision making: Concept and
process; Delegation and Principles of delegation: Strategy Formulation.
Introduction
Management is a soft science or a practical art. Its principles are derived from the working of
industry, government, human psychology and social theories. Knowledge of the basic
principles and theories of management helps in practicing management by way of increasing
efficiency and effectiveness, and helps in avoiding mistakes.
Modern management thought has evolved over the years from contribution from various
disciplines such as social psychology, behavioural science, operational research and systems
theory; technology and economics. This has given rise to different approaches to the study of
management science. These approaches include empirical approach; interpersonal and group
behaviour approach; co-operative, social and socio-technical systems approach, systems
approach, decision theory and operational research approach; contingency or situational
approach, managerial roles approach and operational approach.
The purpose of studying various schools of management thought is to enable you to
recognized and appreciate how developments in the field of management could contribute to
current practices. An examination of these past and present approaches can help to discover
the strengths and weaknesses of current managerial practices and finally enable you, as a
potential manager of an information centre, to choose appropriate management styles.
Classification of management theories
Hitt and others (1979) classify management theories into three broad groups.
1. Classical management theory.
2. Neoclassical management theory.
3. Modern management theory.
1.Classical management theory: The classical management theory is referred to the period
between 1880s and 1920s. This phase consists of Scientific management of F. W. Taylor and
his followers, Administrative management of Henry Fayol and others, and Bureaucratic
organisation of Max Weber. The classical theory emphasised the economic rationality of
management and organisation, and suggested to determine the best way to perform a job.
,This theory is criticised for its assumption that people are motivated primarily by economic
reward.
2.The Neo-classical theory, which is identified with the period from 1920s to 1950s, is
concerned with the human oriented approach and emphasised the needs, drives, behaviours,
and attitudes of people. The human relations school together with (early) behavioural schools
constitutes this group. The social person view of employees is the basis of this set of schools.
The famous Hawthorne experiment conducted by Mayo, Roethlisberger and Dickson is a
milestone in the endeavours of this school. Several behavioural scientists including Maslow,
Mc Gregor, Argyris, Herzberg and Likert have contributed to this school as well as to
organisational humanism school under the modem management theory. This school is
criticised for its over emphasis on human variables and symbolic rewards which may not be
appreciated by the recipient's `significant others'.
3. Modern management theory: The complex employee view has become the basis of
modern management theory which began around 1950s (more particularly with revisionists
movement propounded by Litchfield in Administrative Science Quarterly in 1956). This
group tried to test the views of earlier schools and accept them selectively. In the process it
has made use of many tools like computers and mathematical techniques and theories from
other disciplines like systems theory, decision theory, behavioural science, etc. Four
important schools in this group are systems theory, contingency theory, organisational
humanism and management science.
The primary contributions of the classical school of management includes (i) application of
science to the practice of management (ii) development of the basic management functions
and (iii) articulation and application of specific principles of management.
FW Taylor Principles of Scientific Management
Principles of Scientific Management by Taylor: F.W. Taylor or Fredrick Winslow Taylor,
also known as the ‘Father of scientific management’ proved with his practical theories that a
scientific method can be implemented to management. Taylor gave much concentration on
the supervisory level of management and performance of managers and workers at an
operational level. Let’s discuss in detail the five principles of management by F.W Taylor.
1. Science, not the Rule of Thumb-This rule focuses on increasing the efficiency of an
organisation through scientific analysis of work and not with the ‘Rule of Thumb’ method.
Taylor believed that even a small activity like loading paper sheets into boxcars can be
planned scientifically. This will save time and also human energy. This decision should be
, based on scientific analysis and cause and effect relationships rather than ‘Rule of Thumb’
where the decision is taken according to the manager’s personal judgement.
2. Harmony, Not Discord-Taylor indicated and believed that the relationship between the
workers and management should be cordial and completely harmonious. Difference between
the two will never be beneficial to either side. Management and workers should acknowledge
and understand each other’s importance. Taylor also suggested the mental revolution for both
management and workers to achieve total harmony.
3. Mental Revolution-This technique involves a shift of attitude of management and workers
towards each other. Both should understand the value of each other and work with full
participation and cooperation. The aim of both should be to improve and boost the profits of
the organisation. Mental Revolution demands a complete change in the outlook of both the
workers and management; both should have a sense of togetherness.
4. Cooperation, not Individualism-It is similar to ‘Harmony, not discord’ and believes in
mutual collaboration between workers and the management. Managers and workers should
have mutual cooperation and confidence and a sense of goodwill. The main purpose is to
substitute internal competition with cooperation.
5. Development of Every Person to his Greatest Efficiency-The effectiveness of a
company also relies on the abilities and skills of its employees. Thus, implementing training,
learning best practices and technology, is the scientific approach to brush up the employee
skill. To assure that the training is given to the right employee, the right steps should be taken
at the time of selection and recruiting candidates based on a scientific selection.
These five (5) principles of scientific management process involved experiments,
observation, analysis, and inference and were applied to create a cause-and-effect
relationship.
Henri Fayol 14 Principles of Management
Henry Fayol, also known as the ‘father of modern management theory’ gave a new
perception of the concept of management. He introduced a general theory that can be applied
to all levels of management and every department. The Fayol theory is practised by the
managers to organize and regulate the internal activities of an organization. He concentrated
on accomplishing managerial efficiency.
The fourteen principles of management created by Henri Fayol are explained below.
1. Division of Work-Henri believed that segregating work in the workforce amongst the
worker will enhance the quality of the product. Similarly, he also concluded that the division
of work improves the productivity, efficiency, accuracy and speed of the workers. This
principle is appropriate for both the managerial as well as a technical work level.
BUSINESS MANAGEMENT COURSE CONTENTS
UNIT 1 INTRODUCTION TO MANAGEMENT 10 Hours Evolution of management
thought: Classical School of thought (Contributions of Taylor and Fayol) – Neoclassical
School – Human Relations Approach (Hawthorne Experiments) and Behavioural Science
Approach (brief outline) – Modern Management Theory - Quantitative Approach, Systems
Approach and Contingency Approach. Nature and significance of management - Managerial
roles - Mintzberg - An overview of functional areas of management - Principles of
Management – Managerial skills set - Types of Business, CSR.
UNIT 2 PLANNING, FORECASTING AND DECISION MAKING 08 Hours Planning:
Concept, process and objectives – Types of plans – MBO & MBE, Corporate planning:
Environment analysis and diagnosis. Forecasting: Meaning and purpose of forecasting –
Techniques of forecasting - Qualitative and quantitative Decision making: Concept and
process; Delegation and Principles of delegation: Strategy Formulation.
Introduction
Management is a soft science or a practical art. Its principles are derived from the working of
industry, government, human psychology and social theories. Knowledge of the basic
principles and theories of management helps in practicing management by way of increasing
efficiency and effectiveness, and helps in avoiding mistakes.
Modern management thought has evolved over the years from contribution from various
disciplines such as social psychology, behavioural science, operational research and systems
theory; technology and economics. This has given rise to different approaches to the study of
management science. These approaches include empirical approach; interpersonal and group
behaviour approach; co-operative, social and socio-technical systems approach, systems
approach, decision theory and operational research approach; contingency or situational
approach, managerial roles approach and operational approach.
The purpose of studying various schools of management thought is to enable you to
recognized and appreciate how developments in the field of management could contribute to
current practices. An examination of these past and present approaches can help to discover
the strengths and weaknesses of current managerial practices and finally enable you, as a
potential manager of an information centre, to choose appropriate management styles.
Classification of management theories
Hitt and others (1979) classify management theories into three broad groups.
1. Classical management theory.
2. Neoclassical management theory.
3. Modern management theory.
1.Classical management theory: The classical management theory is referred to the period
between 1880s and 1920s. This phase consists of Scientific management of F. W. Taylor and
his followers, Administrative management of Henry Fayol and others, and Bureaucratic
organisation of Max Weber. The classical theory emphasised the economic rationality of
management and organisation, and suggested to determine the best way to perform a job.
,This theory is criticised for its assumption that people are motivated primarily by economic
reward.
2.The Neo-classical theory, which is identified with the period from 1920s to 1950s, is
concerned with the human oriented approach and emphasised the needs, drives, behaviours,
and attitudes of people. The human relations school together with (early) behavioural schools
constitutes this group. The social person view of employees is the basis of this set of schools.
The famous Hawthorne experiment conducted by Mayo, Roethlisberger and Dickson is a
milestone in the endeavours of this school. Several behavioural scientists including Maslow,
Mc Gregor, Argyris, Herzberg and Likert have contributed to this school as well as to
organisational humanism school under the modem management theory. This school is
criticised for its over emphasis on human variables and symbolic rewards which may not be
appreciated by the recipient's `significant others'.
3. Modern management theory: The complex employee view has become the basis of
modern management theory which began around 1950s (more particularly with revisionists
movement propounded by Litchfield in Administrative Science Quarterly in 1956). This
group tried to test the views of earlier schools and accept them selectively. In the process it
has made use of many tools like computers and mathematical techniques and theories from
other disciplines like systems theory, decision theory, behavioural science, etc. Four
important schools in this group are systems theory, contingency theory, organisational
humanism and management science.
The primary contributions of the classical school of management includes (i) application of
science to the practice of management (ii) development of the basic management functions
and (iii) articulation and application of specific principles of management.
FW Taylor Principles of Scientific Management
Principles of Scientific Management by Taylor: F.W. Taylor or Fredrick Winslow Taylor,
also known as the ‘Father of scientific management’ proved with his practical theories that a
scientific method can be implemented to management. Taylor gave much concentration on
the supervisory level of management and performance of managers and workers at an
operational level. Let’s discuss in detail the five principles of management by F.W Taylor.
1. Science, not the Rule of Thumb-This rule focuses on increasing the efficiency of an
organisation through scientific analysis of work and not with the ‘Rule of Thumb’ method.
Taylor believed that even a small activity like loading paper sheets into boxcars can be
planned scientifically. This will save time and also human energy. This decision should be
, based on scientific analysis and cause and effect relationships rather than ‘Rule of Thumb’
where the decision is taken according to the manager’s personal judgement.
2. Harmony, Not Discord-Taylor indicated and believed that the relationship between the
workers and management should be cordial and completely harmonious. Difference between
the two will never be beneficial to either side. Management and workers should acknowledge
and understand each other’s importance. Taylor also suggested the mental revolution for both
management and workers to achieve total harmony.
3. Mental Revolution-This technique involves a shift of attitude of management and workers
towards each other. Both should understand the value of each other and work with full
participation and cooperation. The aim of both should be to improve and boost the profits of
the organisation. Mental Revolution demands a complete change in the outlook of both the
workers and management; both should have a sense of togetherness.
4. Cooperation, not Individualism-It is similar to ‘Harmony, not discord’ and believes in
mutual collaboration between workers and the management. Managers and workers should
have mutual cooperation and confidence and a sense of goodwill. The main purpose is to
substitute internal competition with cooperation.
5. Development of Every Person to his Greatest Efficiency-The effectiveness of a
company also relies on the abilities and skills of its employees. Thus, implementing training,
learning best practices and technology, is the scientific approach to brush up the employee
skill. To assure that the training is given to the right employee, the right steps should be taken
at the time of selection and recruiting candidates based on a scientific selection.
These five (5) principles of scientific management process involved experiments,
observation, analysis, and inference and were applied to create a cause-and-effect
relationship.
Henri Fayol 14 Principles of Management
Henry Fayol, also known as the ‘father of modern management theory’ gave a new
perception of the concept of management. He introduced a general theory that can be applied
to all levels of management and every department. The Fayol theory is practised by the
managers to organize and regulate the internal activities of an organization. He concentrated
on accomplishing managerial efficiency.
The fourteen principles of management created by Henri Fayol are explained below.
1. Division of Work-Henri believed that segregating work in the workforce amongst the
worker will enhance the quality of the product. Similarly, he also concluded that the division
of work improves the productivity, efficiency, accuracy and speed of the workers. This
principle is appropriate for both the managerial as well as a technical work level.
