1. Moin-Ul-Atiq
Today’s talk
• What is Management?
• Historical Background of management
• Early Years Approaches includes
– Classical approach, Human resource approach and quantitative approaches
• Fredrick's 4 Principles
• Henry 14 Golden rules
• Recent Years Integrative Approaches includes
– Process
– System
– Contingency
•

2. Moin-Ul-Atiq
What Is Management ?
• The term refers to the process of getting activities done
efficiently and effectively with and via people
• Coulter Robins 2004
• The process of getting activities completed efficiently with and
through other people; 2. The process of setting and achieving
goals through the execution of five basic management functions:
planning, organizing, staffing, directing, and controlling; that
utilize human, financial, and material resources.
• Mark Shead
2009

3. Moin-Ul-Atiq
Historical Background: Management
• Organized endeavors or effort directed by people
responsible for Planning, organizing, leading and
controlling activities have existed for thousands of years.
• The Egyptian pyramids and the Great Wall of China for
instance are tangible evidence that projects of tremendous
scope, employing tens of thousands of people, were
undertaken well before modern times.
• The pyramids are particularly interesting example.

4. Moin-Ul-Atiq
Continued
• The construction of a single pyramid occupied more than 100,000
workers for 20 years. Who told each worker what to do?
• Who ensured that there would be enough stones at the site to keep
workers busy? The answer to such questions is manager.
• What was to be done organize people and material to do it Regardless
of what managers were called at the time someone had to plan what
was to be done, organize people and material to do it and direct the
workers and impose some controls to ensure that everything was done
as planned.
• So this is all about the management and from recent times the daily
routine worked resulted in the modern management.

5. Moin-Ul-Atiq
Continued
• These examples from the past demonstrate that organizations have been
with us for thousand of years and the management has been practiced for an
equivalent period
• In 1776 Adam Smith published a classical economic doctrine, ‘The wealth of
Nations” in which he argued the economic advantages that organizations
and society would gain from the division of work, Master Slave Relationship
Concept means performance which is based on 2 principles
1. As mentioned above division of labor/ work
2. Replacing humans with machines
• Smith concluded that Division Of Work increased productivity by increasing
each worker's skill dexterity, by saving time,
• For example an assignment is to be completed by a group of for members

6. Moin-Ul-Atiq
THE EARLY YEARS
• Early years : The management divide into 3 approaches:
1. Classical Approach…
2. Human Resource approach
3. Quantitative approach

7. Moin-Ul-Atiq
THE EARLY YEARS
• Classical Approach…further divide in2 two approaches
1. Scientific Management …….Fredrick Taylor has discussed the 4 principles to
achieve the goals effectively and efficiently:
1. Developing specialize task.. What is to be done / who will do, manager should know on
the basis of passion/ personality traits
• Hiring and teaching individuals……..teach them how to perform e.g. NCA
• Cooperativeness with each other…… team work
• Divide work equally
2. General Administrative Theorists
• Henry Fayol and Mex Weber are the main persons of GA concepts
• On the basis of the above 4 principles of Fredrick, Henry expanded these princi
• ples into 14 principles
• Next slide

8. Moin-Ul-Atiq
Golden Rules of Henry Fayol
1. Division of work/ Labor…….Specialization increases output by making employees
more efficient
2. Authority:……..
• Dhoni Vs Kumble… Authority is exercised responsibility arises.
3. Discipline:
• employee must obey and respect the rules that govern the organization
• Happy atmosphere having good results
4. Unity Of Command:
• Every employees should get order or work from one person, too many captains lead to
disaster
5. Unity of Direction:…..
• Car example only comes every single employees know the firms goal if concealing the data
conflict arise
5. Subordination of individuals interest to the general interest
• Zardari/ Ejazz Butt… many More

9. Moin-Ul-Atiq
Golden Rules of Henry Fayol
7. Remuneration……. Pay scale must be justified
8. Centralization…….. Varies situation to situation mashwara
9. Scalar chain……… Communication is important EVS system
10. Order……………….people and material should be in the place at the right time
11. Equity………………Managers should be Kind and fair enough to their subordinates
12. Stability of tenure of personnel……manager make sure that appropriate
replacement are available . Muhammad Asif , M Amir
13. Initiative……………Always welcome ideas
14. Espirit de Corps……promoting team spirit will build harmony and unity within
organization

10. Moin-Ul-Atiq
Human Resource Approach
1. Early Advocators
1. Late 1800 to early 1900s normally the children under 13 worked 13 hours, with miserable working
conditions but few individuals Chester Barnard , Bell company president debate that Hawthorne study
does not work [properly human relationships are more important than any thing else
2. Hawthorne study
1. A series of studies during the 1920’s environment has a great reflection on performance.
2. For example Agha Khan Hospital
2. Human relations movement
1. Maslow Theory……. Driver perform well when his basic needs are fulfilled
2. Douglas McGregor sets 2 assumptions about human nature Theory X …. Negative view
of people
and Theory Y he suggested that T Y is fruitful The Holy Prophet Sallallaho
Wassalamthan T X
2. Behavioral science
1. Based on sociology and psychology of the human
2. Makro London
3. Eastkil Bride Glasgow Moin Vs Bryan

11. Moin-Ul-Atiq
Quantitative Approach
• After world war 2 many quantitative techniques applied to military problems
but 1n1940s a military man joined ford motor company immediately using
quantitative methods to improve decisions making process.
• Recent years integrative approaches:
1. Process
1. This approach initially originally introduced by Henri Fayol is based on Management functions
2. System
1. The main purpose is communicate must be integrated with different
department…….horizontal….vertical
2. 2 basic types of system does work in the organization open system and closed system
3. In the contemporary organizations normally open system is working in this system
4. Interact with upstream channels and lower stream channels plus customers, government
agencies, financial institutions …….
3. Contingency
1. Reactive approach responding to situational variable as they arise

12. Moin-Ul-Atiq
Conclusion
Without good management ,not a single
organization will get success in the
competitive world

13. Moin-Ul-Atiq
Firms Business Functions
• Procurement and purchase functions
• HRM functions
• Sales function or revenue function
• Marketing functions
• Financial management and cost control functions

14. Moin-Ul-Atiq
Financial Management & CCF
• FM/Financial Accounting it as art of book keeping and is different
from science, it is just an art and not a science
• In order to standardized financial reporting IASB (international
accounting standard board) has issued IAS (international
accounting standards) to globalize financial reporting worldwide
– IAS 2(inventory management) purchase 800 to get the licensed copy
of all the standard from ICAP
– IAS 16( property plant equipments)

15. Moin-Ul-Atiq
5 Components Of Financial Statements
1. Statement of comprehensive income / Profit and loss account
2. Statement of financial position or Balance Sheet
3. Statement of changes in equity
4. Cash flow statement
5. Notes to the Accounts

16. Moin-Ul-Atiq
Income Statement – Function wise
• It represent all the revenue and all the expenses incurred by the small business
in an accounting period
• Illustrative Profit and loss account is as follows:
• Sales
– (Cost of Goods Sold)
• Gross Profit
• Operating cost includes
– (Administrative cost)
– (Selling cost)
• Operating profit
– (Financial charges)
• PBT (Profit before tax)
– (Taxation) for registered firms
• PAT (Profit after tax)

17. Moin-Ul-Atiq
Income Statement – Cost wise
• Sales
– (Cost of Goods Sold)
» Cost of Material Purchased
• Gross Profit
• Operating cost includes
– (Administrative cost) includes
» Salaries and wages, depreciation, rent, travelling cost of admin. Staff, running cost
of generator, repair and maintenance
– (Selling cost)
» Salaries and wages of selling staff, depreciation of sales car, travelling cost
• Operating profit
– (Financial charges)
• PBT (Profit before tax)
– (Taxation) for registered firms
• PAT (Profit after tax)

18. Moin-Ul-Atiq
Balance Sheet
• It represent the assets owned by the company on the basis of
either debt financing or equity financing.
• At the time of purchasing the business person must record all
the entries update the balance sheet.