Introduction To Management

 01.What do you mean by Management and Define it ?

Ans :

Meaning of management: 

Management means directing and controlling a group of people or an organization to reach a goal. Management often means the deployment and manipulation of human resources, financial resources, technological resources, and natural resources.

Definition of management:

According to Harold Koontz and Heinz Weihrich  “Management is the process of designing and maintaining an environment in which individuals, working together in groups, efficiently accomplish selected aims”

02.Explain about the evaluation of management? 

Ans: 

Management thought refers to the theory that guides management of people in the organization. Initially management theories were developed out of the practical experience of the managers in the industrial organization.

The Concept of Evolution of Management Thought

To understand the entire concept of evolution of the management thought, the topic is divided into 4 major stages, which are as follows:

·        Pre-scientific management era

·        Classical management era

·        Neo-classical management era ( or behavior approach).

·        Modern management era/Bureaucratic model.

Max Weber Bureaucracy Theory:

Definition: 

The bureaucratic management theory, introduced by Max Weber stated that to manage an organization efficiently, it is essential to have a clear line of authority along with proper rules, procedures and regulations for controlling each business operation. Bureaucracy refers to the possessing of control over a group of people or activities through knowledge, power or author

Max Weber and His Bureaucracy Theory

Max Weber (1864-1920) was a German sociologist and a political economist, and he came forward with the concept of bureaucracy in management.Weber believed that there could be only three kinds of power in the organization:

1.Traditional: In traditional authority, the workers (considered as servants) are dependent upon the leader (lord) working as their servants and following the stated rules and regulations blindly.

2. Charismatic: Under charismatic power, due to the extraordinary personality of the managers, the workers are deeply motivated to perform their best on the task allotted to them. However, this charisma may fade away with the manager’s lay off, resignation or demise.

3.Legal-Rational: In legal-rational power, the workers either need to abide by the legal rules or the naturally applicable laws. In short, all the employee need to follow a consistent set of principles.

 Thus, Weber developed the bureaucratic management theory, where he emphasized on a formal organizational structure. proper hierarchy is maintained, and hence a clear set of six principles were framed.

Principles of Bureaucratic Theory

Government organizations majorly adopted Max Weber’s bureaucracy theory. Weber gave the following

six principles for managing an organization effectively and efficiently:

 1.Authority Hierarchy :Weber proposed that there should be a systematic hierarchy in the organization, defining the position of each employee from top to the lowest level. In such a system, each employee knows who they have to report, whose orders they need to follow, and what is the role of different personnel in the organization.

2. Formal Rules and Regulations: There should be a clear set of principles, procedures, rules and regulations in written form, to be followed universally by everyone working in the organization irrespective of their position.

3. Division of Labour: The whole work should be assorted into smaller task sets to ascertain that every set of tasks is assigned to the right person, i.e., the one who has the capability of fulfilling it. This not only improves the work efficiency but also ensures proper allocation of job responsibilities.

4. Career Orientation: 

Another essential principle is that management should motivate employees to build a long-term career in the organization by providing job security and performance-based incentives to them.

5. Impersonality: In an organization, the impersonal relations develop among the employees, which may lead to favouritism or nepotism. Weber said that the application of rules and managerial decisions should be impartial and independent of such relations.

6.Formal Selection Process: Weber believed that the workers should be recruited through their technical skills and expertise instead of ‘first come first selected’ basis. Even the promotion should be based on performance and merit. This not only leads to better productivity but also adds to employee’s growth and satisfaction.

 

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 . five principles of management by F.W Taylor are:

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.

03. What are the nature and characteristics of management?

 Ans:

Nature/ Characteristics of Management:

 

01.Management is an Activity

Management is a process of organized activity. It is concerned with the efficient use of resources of production. This process is made up of some interrelated elements-planning, organizing, leading and controlling.

02.Management is a continuous Process

Management is a dynamicand an on-going process. The cycle of management continues to operate so long as there is organised action for the achievement of group goals.

03.Management is Intangible

Management is an unseen or invisible force. It cannot be seen but its presence can be felt everywhere in the form of results. However, the managers who perform the functions of management are very much tangible and visible.

04.Management is multidisciplinary

Management has to deal with human behaviour under dynamic conditions. Therefore, it depends upon wide knowledge derived from several disciplines like engineering, sociology, psychology, economics, anthropology, etc. The vast body of knowledge in management draws heavily upon other fields of study.

05.It is Dynamic Management

is not a static activity. It adapts itself to the new changes in society. It also introduces innovation in its style and techniques. It accepts environmental changes.

06.Hierarchical Nature

Management has several positions, ranks, authority and hierarchies flowing from top to bottom across all levels in the organization. It has top, middle and bottom levels with superiors and subordinates

Management contains a chain of authority and command with attached responsibility. This is known as the managerial hierarchical system of authority.

07.Group Activity

It is concerned with the efforts of a group. It works in ‘cooperative group’. Managers are vital to joint activity. Management is essential wherever people work together for a common cause. Management plans, organizes, go-ordinates, directs and controls the group efforts, not the individual efforts.

08.Management is Universal

Management is needed in all types of organized activities and in all types of organizations. In fact, it is present in all walks of life. Fayol writes, “Be it a case of commerce, industry, politics, religion, war or philanthropy, in every concern there is a management functions to be performed.” Also, the techniques and tools of management are universally applicable.

09.Separate Identity

Management represents a separate class of managerial personnel who are quite different from the identity of workers and capitalists. It is a class of administrators and planners. Managers need not to be owners. In modern industrial society Labour, Management and Capital are different entities.

10.It Involves Decision-making

Making decision is a real identity of a manager. He is a planner and thinker. He decides the course of action, strategies, policies and programmes. Drucker states, “Whatever a manager does, he does through making decisions.” Thus, management is always a decision-making process.

11. Management is goal-oriented

Management is not an end in itself .It is a means to achieve certain goals. Management has no justification to exist without goals. Management goals are called group goals or organisational goals. The basic goal of management is to ensure efficiency and economy in the utilisation of human, physical and financial resources. The success of management is measured by the extent to which the established goals one achieved. Thus, management is purposeful.

04. Explain the functions of management?   

Ans:

Functions of Management:

01.Planning:

Planning is one of the most important functions because it sets the pattern for the other activities to follow. Planning function for the new era is more broadly described as delivering strategic value. It is a primary and crucial function which determines how to achieve an objective-deciding what is to be done and when to do it. It is looking ahead and preparing for the future.

02.Organizing:

Organizing is the process by which the structure and allocation of jobs are determined. To organize a business is to provide it with everything useful to its functioning.

03.Staffing:

Staffing is the process of planning, recruiting, developing, compensating and maintaining human resources in an organization. In staffing, a manager recruits and selects suitable personnel for manning the jobs.

04.Directing: 

The fourth basic function of management is directing. This is also termed leading or actuating. While planning tells us what to do and organizing tells us how to do directing tells us why the employees should want to do it. Directing is concerned with guiding and leading people. It consists of supervising and motivating the subordinates towards the achievement of set goals. (i) Communication (ii) Command (iii) Motivation (iv) Leadership (v) Supervision (vi) Controlling

05.Controlling:

Controlling is evaluating the performance and applying corrective measures so that the performance takes place according to plans. It is reviewing the performance of the employees in the light of the targets and goals.

05.What are the functional area of management?  

Ans:

Functional Areas of Management:

Under this aspect, management consists of the following functional areas:

01.Financial Management:

Financial management deals with how funds are procured and utilized. It includes the financial aspects of a business such as cost control, budgetary control, management accounting, etc.

 

02.Human Resource Management:

Human resource management deals with acquisition and utilization of human resources in the organization. The entire subject matter of human resources covers acquisition, development, maintenance, and control of human resources in the organization. Accordingly, it covers aspects relating to the personnel of an enterprise. These aspects are, for example, recruitment, training, promotion, retirement, industrial relations, social security, labour welfare, etc.

03.Production Management:

It consists of production related aspects like production planning, production control, quality control and so on.

04.Office Management:

Under this aspect, office layout, staffing, equipment layout, etc., are dealt with.

05.Marketing Management:

This aspect is concerned with marketing aspects of the product produced by the business concern. It deals with the aspects like price determination, channels of distribution, market research, sales promotion and advertisement.

06.Explain management as a art,science and profession? 

Ans:

Management as SCIENCE, ART and PROFESSION:

Management as a Science:

01.Systemized body of knowledge : 

like science management has systemized body of knowledge. It has its own theory and principle. Management has vocabulary in terms and concepts.

02.Principles based on experimentation:

like scientific principles management principles are also based on repeated experiments and observation in different types of organization. Eg: scientific management principles by F W TAYLOR

03.Universal validity: 

Since management deals with human beings and human behavior , application and use of management principles is not universal. They have to be modified according to a given situation.However they provide managers with certain standardizes techniques that can be used in different situation.

04.Cause and effect relationship:

like principle of science, management principles also established caused effect relationship in dealing with various situation in the organisation. Eg: division of labour(cause),result in increased productivity(effect).

Management as an Art:

01.Existence of theoretical knowledge:

like any other art, in management, there is existence of theoretical knowledge. Lot of literature is available in various areas of management like marketing, finance, and human resource. further, various theories of management were developed by management thinkers, which prescribe universal principle

02.Personalized application:

like an artist every manager has his own way of managing the things depending upon his knowledge and experience. A manager applied management principle to a given situation, or a problem in his own unique manner. Thus the ability of the managers to put management principle into practice distinguishes a successful manager from a less successful one.

03.Based on practice and creativity:

like an art management involves the creative practice of existing theoretical knowledge. A good manager works through a combination of practice, creativity, imagination, initiative, and innovation. A manager achieves perfection after long practice.

04.Goal oriented:

like an art, management is also directed towards completion of the pre-determined goals.Therefore, we can conclude that management is an art.

Management as a Profession:

01.Specialized Knowledge -

A profession must have a systematic body of knowledge that can be used for development of professionals. Every professional must make deliberate efforts to acquire expertise in the principles and techniques. Similarly a manager must have devotion and involvement to acquire expertise in the science of management.

02.Formal Education & Training: -

There are no. of institutes and universities to impart education & training for a profession. No one can practice a profession without going through a prescribed course. Many institutes of management have been set up for imparting education and training. For example, a CA cannot audit the A/C’s unless he has acquired a degree or diploma for the same but no minimum qualifications and a course of study has been prescribed for managers by law. For example, MBA may be preferred but not necessary.

03.Social Obligations :-

Profession is a source of livelihood but professionals are primarily motivated by the desire to serve the society. Their actions are influenced by social norms and values. Similarly a manager is responsible not only to its owners but also to the society and therefore he is expected to provide quality goods at reasonable prices to the society.

04.Code of Conduct ;

Members of a profession have to abide by a code of conduct which contains certain rules and regulations, norms of honesty, integrity and special ethics. A code of conduct is enforced by a representative association to ensure self discipline among its members. Any member violating the code of conduct can be punished and his membership can be withdrawn. The AIMA has prescribed a code of conduct for managers but it has no right to take legal action against any manager who violates it.

05.Representative Association: 

For the regulation of profession, existance of a representative body is a must. For example, an institute of Charted Accountants of India establishes and administers standards of competence for the auditors but the AIMA however does not have any statuary powers to regulate the activities of managers.

07. Difference Between management and administration? 

Ans:

Management and Administration:

According to Theo Haimann, “Administration means overall determination of policies, setting of major objectives, the identification of general purposes and laying down of broad programmes and projects”. It refers to the activities of higher level. It lays down basic principles of the enterprise. According to Newman, “Administration means guidance, leadership & control of the efforts of the groups towards some common goals”.Whereas, management involves conceiving, initiating and bringing together the various elements; coordinating, actuating, integrating the diverse organizational components while sustaining the viability of the organization towards some pre-determined goals. In other words, it is an art of getting things done through & with the people in formally organized groups.

 

  

 

 

08. Explain the 14 principle of management  given by Hendry Foyal? 

Ans:.

Hendry Foyal Principles of Management:

The fourteen principles of management created by Henri Fayol are explained below.

01.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.

02.Authority and Responsibility-

These are the two key aspects of management. Authority facilitates the management to work efficiently, and responsibility makes them responsible for the work done under their guidance or leadership.

03.Discipline-

Without discipline, nothing can be accomplished. It is the core value for any project or any management. Good performance and sensible interrelation make the management job easy and comprehensive.Employees good behaviour also helps them smoothly build and progress in their professional careers.

04.Unity of Command -

This means an employee should have only one boss and follow his command. If an employee has to follow more than one boss, there begins a conflict of interest and can create confusion.

05.Unity of Direction-

Whoever is engaged in the same activity should have a unified goal. This means all the person working in a company should have one goal and motive which will make the work easier and achieve the set goal easily.

06.Subordination of Individual Interest-

This indicates a company should work unitedly towards the interest of a company rather than personal interest. Be subordinate to the purposes of an organization. This refers to the whole chain of command in a company.

07.Remuneration

This plays an important role in motivating the workers of a company. Remuneration can be monetary or non-monetary. However, it should be according to an individual’s efforts they have made.

08.Centralization-

In any company, the management or any authority responsible for the decision-making process should be neutral. However, this depends on the size of an organization. Henri Fayol stressed on the point that there should be a balance between the hierarchy and division of power.

09.Scalar Chain-

Fayol on this principle highlights that the hierarchy steps should be from the top to the lowest. This is necessary so that every employee knows their immediate senior also they should be able to contact any, if needed.

10.Order-

A company should maintain a well-defined work order to have a favourable work culture. The positive atmosphere in the workplace will boost more positive productivity.

11.Equity-

All employees should be treated equally and respectfully. It’s the responsibility of a manager that no employees face discrimination.

12.Stability

An employee delivers the best if they feel secure in their job. It is the duty of the management to offer job security to their employees.

13.Initiative

The management should support and encourage the employees to take initiatives in an organization. It will help them to increase their interest and make then worth.

14.Esprit de Corps

It is the responsibility of the management to motivate their employees and be supportive of each other regularly. Developing trust and mutual understanding will lead to a positive outcome and work environment

These 14 principles of management are used to manage an organization and are beneficial for prediction, planning, decision-making, organization and process management, control and coordination.