management book
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MANAGEMENT:Management is the art of getting things done through others and with formally organized
groups.
ORManagement is the art and science of organizing and directing human efforts applied to control
the forces and utilize the material of nature for the benefit of man.
American society of mechanical engineers.
Functional concept-as a process, management is what a manager performs.
William Spriegel
Management is the process by which a cooperative group directs action towards a
common goal. Joseph Messie
Human Relations concept-Management is the art of directing and inspiring people.
J.D Mooney, and A.C Railey
Leadership and decision making concept-Management is the art and science of
decision-making and leadership.
Donald J Clough
Management means decision-making Ross Moore
Productivity concept-Management is the art of knowing what to do ------------ in the
cheapest way. F.W Taylor
Management is a technique of increasing productivity.
--Management means designing, organizing defining goals formulating policies and
strategies in accordance with the prevalent environmental conditions and these environmental
conditions are known as situations.
--Management is merging quality and variety with cost that is providing unlimited variety
of goods, better quality and at lowest price level to the customers.
--Management is defined as a process of identifying problems and threats and taking care
of these problems and threats in such manner that ultimately these turn out into opportunities
which could benefit the organization in accomplishment of its objectives.
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In latest view:
Now a days in corporate sector taking advantage of the opportunities does not matter
What matters is to convert or translate the opportunities then to face difficulties.
Definitions based on mixed views:
Good management achieves a social objective with the best use of human and material
energy and time and with satisfactions for the participants and the public.
Mary cursing Niles
Management is the direction of human behaviour towards a particular goal or objective.
Conclusion:
On the basis of all the above-mentioned definitions it can be asserted. Management is the
process which by planning, organizing, staffing, leading and controlling, a human group makespossible the maximum and efficient use of physical resources and helps in realizing the pre-
determined objectives of any organization.
------In modern times when human needs are continuously rising, it is absolutely
impossible to fulfill them single-handed. In such a situation the need of group activity is felt.
Man cannot produce any single thing by himself alone and there is always the necessity of a
human group whose activities and be named collective effort. Thus on human group produce
one particular produce while another such group produce something different and hence, human
needs are fulfill by collective efforts of different human groups.
Now the question arises whether all the peoples comprising a particular human group
are competent enough to achieve success in their activities without any outside discussion and
control.
The obvious to this all-important question can only be in the negative. The reason for
such an answer is complex. So long particular human groups for into have their air aims,
definite planning, proper distribution of work, defining rights and duties, establishing proper co-
ordination among them, directing and controlling their activities, success cannot be achieved
These are the problems, which give rise to another question, which is equally important, and the
question is how to overcome these problems? The answer to this really complex question in
inherent in management.Through the medium of management all these above-mentioned problems can be solve
The activities of a human group can be efficiently managed on the pre-determined problems can
be effectively achieved handling by a manager. It would not be out of place to mention here that
the absence of proper management, the activities of a human group are like a ship without a
captain. Thus it is evident that success of collective efforts requires some special power. AND
THAT POWER IS THE MANAGER, who ensures the success of different activities by the
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process of management. It is important to classify here that the importance of management is
not limited to business alone but it is needed at all those places where human activities take
place-for example: educational Institutions, Religious Institution, Govt. departments, unions
forces, families.
MEANING OF MANAGEMENT
Anything minus Management is nothing--Sherlekar and Sherlekar
MANAGEMENT:The word management can be styled as MANAGE-MEN-T. That means manage men
tactfully. Why manage men tactfully. This is with a view to get the things done being with
them. Thus management means managing men tactfully to get the things done being with them.Thus management. In order to manage men tactfully, one has to understand the highly
unpredictable and uncertain human nature owing to this management is very complicated and
challenging activity.
Some times it is known as a group of administration officers working in a particular
institution and sometimes it means a process of planning, organizing, staffing, directing, co-
coordinating and controlling.
In the light of different opinions the meaning of management can be analyzed in the
following ways:
(i) Management as a process: some times it is defined as a process. A process has
means that different activities like planning, organizing, staffing, leading, controlling
through a definite process.
(ii) In other words, management is a definite process when coordinates different activities
for the attainment of an aim or target set by an institution or organization.
(iii) Management as a discipline: management is fast emerging as a discipline. Discipline
here means a separate and recognized subject, which has its own identity
Management is also being recognized as separate syllabi because it has its own
thoughts, principles and methodology.
(iv) Management as a economic resource: economists have accepted management as aresource of production like other resources (land, labour, capital, material and
machine). Production is not possible without these basic things.
(v) Management as a noun: when it is addressed as a noun, it is related to those persons
who get other peoples work completed. E.g. board of directors, managing, general
manages etc.
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Meaning of management at glance:(i) As an activity: getting things done through others being with them.
(ii) As a process: a series of interrelated functions performed in all organizational.
(iii) As a discipline: a subject of study drawing upon knowledge of others disciplines. A
young and growing discipline.(iv) As a group: a body of persons who perform the task of managing organization. An
elite group in the society.
Nature or Characteristics of management:
(i) Goal oriented.
(ii) Universal.
(iii) Integrated process
(iv) Social process
(v) Activity based(vi) Group activity
(vii) Art as well as
science
(viii) Multi disciplinary
(ix) Intangible
(x) Optimum co-
ordination
between human
and materialresources.
(xi) The combination
of multiple
functions
(xii) Management is a
distinct entity.
(xiii) Management is a
profession
(xiv) Management based on
authorities
(xv) It is needed at all
level
(xvi) It is a social
responsibilities
(xvii) Purposeful
(xviii)It is an executive
function(xix) It is a
coordinating
force
(xx) Dynamic in
nature
(xxi) Management
principles a
relative not
absolute ---- it
means thatmanagement
results are
according to the
situation.
(xxii) Management is
creative and
innovative
formulate
creativity;creativity is the
process
developing new
ideas.
OR
After a careful study of definitions we embark upon such features, which illustrate the
nature of management. Such features are as follows:
(i) It is a process:process means a systematic method of doing some work. Management
is recognized as a continuous process. It is that process in which work is done with
others or it is got done from them. In order to achieve the pre-determined objective a
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manager performs the work of planning, organizing, staffing, leading and controlling.
A manager did these works in a continuous order. So, it is a process.
(ii) Group efforts: management always efforts to group efforts and does not apply to an
individuals. A group rather than an individual can easily and effectively attain
management of an enterprise.
(iii) It is a social process: management is called a social activity because it is connected
with the people working in a human group and which requires organizing their efforts
Any activity, which is connected with the people living in society, is called a social
activity. In this context management is also described as a social activity.
(iv) Attainment of pre-determined objectives: group efforts in management are always
directed towards the achievement of some pre-determined objectives; with ou
objectives management would be difficult if not impossible.
(v) Management has a distinct entity: in view of the widening scope of business it is
not possible for an owner to perform all functions himself. We can say that specially
qualified experts are needed for managing the company.(vi) Management is a universal activity: it is clear that management is not only
connected with business but also with non-business activities also, which is also
important. Management is everywhere.
(vii) Management as a profession: when we have recognized the distinct entity of
management, there should not be any doubt or hesitation to call it a profession. The
quality of a profession is that he must posses some special qualifications or ability for
which he is paid remuneration. The knowledge of management is also a qualification
and managers also get their remuneration for it. Hence, management is considered a
profession.
(viii) Management is an intangible force: management is a force, which is not visible. It
can only be feel or realized on the basis of the success of an organization.
(ix) It is a combination of multiple functions: the basic function of management is to
achieve the objectives of the organization successfully. That is why a manager has to
perform various function like planning, organizing, staffing, leading and controlling
etc. hence management does not mean one particular job but it happens to be a
combination of various jobs.
MANAGEMENT Art, Science and Profession:
As a science: systematic body of knowledge, universal principles, scientific experiments, cause
and effect relationship, validity and predictability.
As an art: practical knowledge, personal skill, creativity and continuous practice.
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As a profession: specialized body of knowledge, formal education service motive
representative association and code of conduct management is not a full-fledged profession.
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MANAGEMENT AS AN ART:
Main features of art are:
(i) Art involves the application of knowledge and skills to achieve desired results.
(ii) Art is essentially creative and the success of an artist is measured by the results he
achieves.
(iii) Art is a personalized process as every artist has his own style or approach.
(iv) Art prescribes row to do things and it can be improved through continuous practice.
Management is essentially an art because:
Firstly, the process of management involves the use of knowledge and skills in solving various
problems.
It seeks to achieve concrete practical results that is output, profits, growth etc.
Secondly, Management is creative as the manager creates new things and improves upon the
old things.
Thirdly, Management is a personalized process every manager has his own approach and
techniques to solve problems, depending upon the environment in which he works.
Lastly, the manager gets perfection in the art of managing through continuous practice.
Thus management fully lives up to the description of an Art and therefore it is an art.
OR
Art implies the application of knowledge and skills to bring about the desired results.
Features:
1. Practical knowledge: every art signifies practical knowledge. An artist must not only
learn the theory but also its application in practice. Similarly a person cannot become
a successful manager simply by reading the theory if must also learn to apply his
knowledge in solving managerial problems in practical life. A manager is judged notjust by his technical knowledge but his efficiency in applying that knowledge.
2. Personal skill: every artist has his own style and approach to his job. This is
level of their personal skill. Similarly every manager has his individual approach and
style on solving managerial problems. The success of a manager depends on his
personality in addition to his technical knowledge.
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3. Result oriented approach: art seeks to achieve concrete results. Every manager
applies certain knowledge and skills to achieve the desired results. He uses CMs to
the growth of his organization.
4. Creativity: art is basically creative therefore every piece of art requires imagination
and intelligence to create. A manager effectively combines and coordinates the factors
of production to create goods and services.
5. Improvement through practice: every artist becomes more and more efficient
through constant practice. Similarly a manager gains experience through regular
practice and becomes more effective.
Conclusion:
One cannot become efficient and effective manager simply by learning. Management
principles by heart it also requires practical application of those results.
MANAGEMENT AS A SCIENCE:
Main features of science are:
(i) Science is a systematized body of knowledge.
(ii) It is based on cause and effect relationship.
(iii) The scientific study is based on observation and experiments.
(iv) The principles of science have universal validity and applicability.
Management is a science because:
According to the given information about science, management is also a systematized body of knowledge. It consists of various concepts, principles and techniques developed
through observation and experience. These principles are universal in nature and establish on
cause and effect relationship. But the methods of observation followed by management are not
purity objective because the subjects are human beings whose behaviors cannot be predicted
with absolute accuracy.
Thus management cannot be regarded as an exact science like physics and chemistry. It
deals with the study of behavior of human beings, which is subject to constant changes and
difficult to predict.
Thus management cannot be regarded as exact science like physics, chemistry etc.therefore management may be called an inexact science, as is the case with other social science
like psychology, sociology.
OR
Science means a systematic body of knowledge pertaining to a specific field of study. It
contains general principal and facts which explains a phenomenon.
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Features:
1. Systematic body of knowledge: management is a systematic body of knowledge
consisting of general principles and techniques. These help to explain events and serve as
guidelines for managers in different types of organization.
2. Universal application: scientific principles represent basic facts about and a particular
field of enquires. These principles may be applied in all situations and at all times
Management contains some fundamentals principles, which can be universally applied
These principles are flexible and need to be modified in different situations.
3. Scientific enquiry and experiment: scientific principles and derived through scientific
investigation and reasoning. So they can be explained logically, scientific principles are
critically tested. Management principles are also based on scientific enquiry and
investigation. These have been developed through practical and experimental experience
of a large number of managers.
4. Cause and effect relationship: principles of science lay down a cause and effect
relationship between related factors; similarly the principles of management establishcause and effect relationship between different variables.
5. Test of validity and predictability: validity of scientific principles can be tested at any
time and any number of times. Every time the test will give the same result.
Principles of science can also be tested for their validity.
Conclusion:
Management is not a perfect science like other physical science such as astronomy,
physics, chemistry, and biology etc. management deals with people and it is very difficult to
predict their behavior accurately so management is a social science.
Management as a profession:
A profession is a caving that requires specialized knowledge and often long intensive
academic preparation:
Features:
1. Specialized body of knowledge: every profession has a well-defined body of knowledge
relevant to the area of specialization. In order to practice a profession a person requires
specialized knowledge of its principles and techniques. There exists a substantially andrapidly expanding body of knowledge in management. Today, management is a separate
discipline having a specialized and organized body of knowledge.
2. Restricted entry: there exist institutions and universities to impart education and training
for a profession. No one can enter a profession without going through the prescribe
course of learning. Many institutions have been set up which offer courses for specialized
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training in management. Formal education and training has become very helpful in
getting jobs as managers.
3. Service motive: a profession is a source of livelihood but professional are primarily
motivated by the desire to serve the community. A profession enjoys community sanction
or respect. A manager of a factory is responsible not only to its owners, by the is also
expected to produce quality goods at reasonable costs and to contribute to the well being
of the community.
4. Representative association: in every profession there is a statutory association or
institution, which regulates that profession. Managers have formed certain associations
for the regular exchange of knowledge and experience.
5. Code of conduct: members of one profession have to abide by a code of conduct, which
contains rules and regulations providing the norms of honesty integrity and professional
ethics. The representative association to ensure self-discipline among its members
enforces the code of conduct. Any member violating the code can be punished and his
membership can be cancelled.
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Conclusion:
Management fulfills several essentials of a profession but like other professions
management does not restrict entry into managerial jobs, to people with a special academic
degree.
Objectives of management at a glance
(i) Securing maximum results with minimum efforts.
(ii) Maximum prosperity for employer and employee.
(iii) Human better mere
(iv) Elimination of all types of waste
(v) Economic growth
(vi) Social justice
Importance of management at glance:
1. Achievement of group goals
2. Optimum utilization of resources
3. Minimization of cost
4. Survival and growth of business
5. Generation of employment
6. National development
OR
According to Drucker, management is a dynamic and life-giving element of every business. In
its absence the means of production remain merely the means and can never be the producers.
We know that not only in the field of business but in other fields also management has
come to occupy an important place. In this reference, it is said that any thing minus
management is nothing.
These are some topics, which clearly highlight the importance of management.
1. Achieving pre-determined objectives: each organization is established with
certain aims. Management is the only power and medium which can help in thesuccessful attainment of these aims. A manager with the help of his expertise and
cleverness makes and assessment of the future events and finally by his corrective action
makes the impossible took simple.
2. Maximum utilization of resources of production: management is that power
which by establishing an effective coordination between the various resources of
production makes an optimum use of these resources. Most efficient use of the limited
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resources is the key to the successful business and thus this fact can be converted into
reality with the help of management.
3. Overcoming competition: these days business is not localized but it has
assumed national or even international dimensions. Competition is increasing day by day
In these competition days only that organization can survive which can make available to
its customers the best quality of goods at the cheapest rates. Only an efficient and clever
manager can make it a reality and save the reputation of an organization.
4. Integration with changing environment: management is not only limited to
various internal function of an organization but it has to compromise with the outer
atmosphere also. So many goods having modern techniques are in the bazaar customers
accept only those products which are cheap and the best. With the help of efficient and
effective management a co-ordination between the new and prevalent work system and
methods can be established to save the reputation of an organization.
5. Research and investigation: a recent research has brought out the fact that
only those companies or business enterprises which are constantly taking interest inresearch activities are developing very fast.
6. Increased profits.
7. To maintain a sound organizational structure.
8. Fulfilling the social responsibility: Sound management monitors the
environment of business and makes necessary changes in the business policies and
practices so as to keep the consumers and workers satisfied to this way managers help an
enterprise to fulfill its obligation towards different sections of society.
9. Management minimizes risks.
10. Reduces cost of production.
11. Economic growth: Management is the catalyst of economic growth
development is a matter of human energies rather than of economic growth and
generation of human energies is the task of management. Management is the mover ad
development in the consequence.
12. Stability: management ensures the survival of an organisation in a fast
changing environment. It co-ordinates the activities of different departments in an
organisation and maintains team spirit amongst the personnel.
13. Human development: Management is not simply directions of things but the
development of men. It improves the personality and caliber of people to raise their
efficiency and productivity. A good manager serves as a friend and guide to hissubordinates.
14. Meets the challenge of change: Management is a catalytic force that enables
an organisation to face the challenge of change. The environment of business has become
very turbulent. Managers maintain a dynamic equilibrium between an enterprise and its
environment through innovation and creativity.
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MANAGEMENT AND ADMINISTRATION
On the basis of different opinions of the experts over the world management and
administration, there are three prevalent concepts: -
(i) American concepts: Administration is a higher-level activity or system and
management is lower.
(ii) English concepts: management is the higher-level system and it has more power than
administration.
(iii) Modern concepts: According to it, management and administration are synonymous
In the modern scientific age of management this is the most prevalent and accepted
concept of management and it makes no difference between management and
administration.
DIFFERENCE BETWEEN MANAGEMENT AND ADMINISTRATION:
Sr.
No.
Basis of
difference
Administration Management
1. Meaning It means the determination of
objectives, plans and policies
of an enterprise.
Management is to translate
threats into opportunities.
2. Purpose Administration aims at
determining the objectives.
Management aims at
achieving pre-determined
objectives.
3. Nature Administration is a decision
making function.
Management is an execution
or doing function.
4. Decisions Administration decides what
is to be done and when it is to
be done.
Management decides who will
do the function and how he
will do it, where he will do it.
5. Scope The term administration is
applicable at the top level ofmanagement.
The term management is more
applicable at middle level andlower level of management.
6. Usage The term administration is
generally used from business
organizations like govt.,
offices, colleges, universities
etc.
Management is generally used
with reference to business
enterprises.
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7. Features
affecting
decisions
Administration decisions are
influenced by govt. policies,
social and political
circumstances and economic
additions.
Management decisions are
mainly influenced by the
target of enterprise.
8. Relationship Administration is related
mainly with the owner and
top-level managers.
Management is related with
the workers and employers of
organization.
9. Function It is a determinative or
thinking function.
It is an executive or doing
function.
10. Concerned It is concerned with
determination of major object
and policies.
It concerned with the
implementation of policies.
11. Level It is mainly top-level
function.
It is largely a middle and
lower level function.12. Influence Its services are influenced
mainly by public opinion and
other outside forces.
Managerial decisions are
influenced mainly by
objectives and policies of
organization.
13. Concerned It is not directly concerned
with direction of human
efforts.
It is a activity concerned with
directions of human efforts in
the executions of plans.
14. Involvement Planning and controlling are
the main functions involvedin it.
Directing and organizing are
main functions involved in it.
15. Skills Conceptual and human skills
used eagerly in govt. and
public sector.
Technical and human skills
used mainly in business
organization.
16. Minister, Commander,
Commissioner, Registrar, Vice
- Chancellor, Governor etc.
Managing director, general
manager, sales manager,
branch manager etc.
LEVELS OF MANAGEMENT (MANAGERIAL HIERARCHY)
The management levels may be classified as follows:
(i) Top management
(ii) Middle management
(iii) Supervisory or operating management
(iv)
Top or executive management:
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Top management refers to the managing at the highest level in the management
hierarchy. It is the ultimate source of authority. It is held responsible for the general success or
failure of the organization.
Top management consists of the board of directors and the chief executive or managing
director they establish overall long-term goals and plans of the organization. It is their
responsibility to ensure success of the organization. It is basically an organ of overall review
and control. Chief executive is concerned with the overall management of the companys
operations. He maintains coordination among different departments of the company. He also
keeps the organization in harmony with its external environment.
Features:
(i) To analyse and interpret changes in external environment of the company.
(ii) To establish long term corporate plans.
(iii) To formulate and approve the master budget and departmental budgets.
(iv) To design broad organization structure.(v) To appoint departmental heads and key executives.
(vi) To coordinate and integrate the activities of different departments and divisions
of the company.
(vii) To provide overall direction and leadership to the company.
(viii) To exercise the overall review and control of the financial and operating results
of the company.
(ix) To represent the company to the outside world.
(x) To decide the distribution of profits.
Intermediate management:
Intermediate or upper middle management comprises departmental or divisional heads.
E.g. works manager, marketing manager, finance manager etc.
It is also known as departmental or functional management. Every divisional head is the
overall uncharged of one particular division or department. He is accountable for the
performance of his division or department to the chief executive. He performs the usua
managerial functions of planning, organizing, staffing, directing and controlling in relation to
one department. He coordinates and controls the activities of all personal working in different
branches of his department.
Middle management:
Middle management consists of all sectional heads.
E.g. plant manager, area sales manager, branch manager, office manager etc.
These executives serve as a link between intermediate or top management and the
operating management.
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Function:
(i) To interpret and explain the plans and policies formulated by top management.
(ii) To control the operating performance.
(iii) To cooperate among themselves so as to integrate the various activities of department.
(iv) To train, motivate and develop supervisory personal.
(v) To lay down rules and regulations to be followed by supervisory personnel.
Supervisory or operating or first-line management:
This is the lowest level of management in an organization. It consists of supervisors,
foremen, sales officers, and purchase officers etc. supervisors and operating managers maintain
close contacts with rank and file workers and supervise day-to-day operations. They are
concerned with the mechanics of jobs.
Function:
1. To plan day-to-day production with is the goals laid down by higher authorities.2. To assign jobs to workers and to make arrangements for their training and development.
3. To issue orders and instructions.
4. To supervise and control workers operations and to maintain personal connection with
them.
5. To arrange material and tools is maintain machinery.
6. To advice and assist workers by explaining work procdures, solving problems etc.
7. To maintain discipline and good human relations among workers.
8. To report feedback information and workers problems to the higher authorities.
CONCEPTS OF MANAGEMENT
(a) Process of management: it includes six ms.
1. Men
2. Money
3. Machine
4. Material
5. Market
(b) As a profession: you need proper degree. There are certain legal rules.
SKILLS OF A MANAGER
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In order to have a proper achievement of good and in order to have plan to be properly
worked on a manager must have certain skills such as: -
(1) Conceptual skills: A manager must have conceptual knowledge of
management. Each principle and concept should be clear in the mind of
a manager and he should be effectively able to apply him.
(2) Technical skills: it is concerned with the application of skill or
knowledge acquired. Management does not simply mean the knowledge
of principles of management rather it is its application which makes its
effective.
(3) Human skills: A manager should have Psychological knowledge. He
should able to deal with different persons in different circumstances.
(4) Decision making skills: in crucial times a manager should be able to
have the ability of making decisions. These decisions must be effective
and practical in use as well.
MANAGEMENT AND SOCIAL RESPONSIBILTIES
FOR:
Manager should have social responsibility for the people. Because manager is a person
who is very skilled, if he will take interest in the social functions or problem, it will create a
good impression on other people living or working under him it will motivate the sub-ordinates
working under him. Thus, it creates a favorable impression on the society, which will ultimately
helps the business.
Managers have a creative and also communicative skill. As their main task is to have the
cordial relations with people inside the organization or outside the organization. The had to
interact with his subordinates, superiors and other members relating to business.
So, the managers are very creative and if they will take part in social problems, thesociety is bound to improve in some kind or others. Managers take the input from the society
e.g. education values etc. if managers will take part in social event or they will become
responsible towards society, the society is sure to make progress become one man can change
the whole environment. It will thus create the source of motivation towards the society
According to System theory, for the efficient working and smooth working small sub-systems
should work properly.
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AGAINST:
The main function of the manager is to govern his organization smoothly and efficiently.
So, he should not make himself responsible towards the society. He should not be able to do his
work properly. The social problem should be left for those people. So generally take the
responsibility (political parties, interest groups etc) of improving are solving the problem of the
society. Manager takes the salary for gobering his organizing properly not for solving the social
problem of the society. Thus, manager should not move his mind towards social responsibilities
of the society.
OR
There are many thinkers who have supported this, but there are others who have expressed their
opinion both sides are given as under:-
Arguments against social responsibility:
1. Contrary to the objective of business: Just as the primary objective of players in
the play-ground is to achieve victory, in the same way the chief objective of
business is to enhance its profits by utilizing its, resources.
2. Inefficiency in the system: there is no power other than self-interest, which can
get work out of people. It owners of business, by ignoring self-interest, start
thinking of social responsibility the whole work-system will turn inefficient.
3. Effects of business values: Business should not have any social responsibility
otherwise social values will come to be dominated by business values, which initself is a painful delaminate. It means that when business is alive to its social
responsibility, the people in the beginning will be so thoroughly impressed by it
that in future business will come to occupy a position of predominance the idea of
social responsibility of management opinion against.
4. Conflicting consideration: A business manager will be guided by two
considerations, namely, private market mechanism and social responsibilities
which are opposite to each other.
5. Arbitrary power: Business managers will get arbitrary power in the matter of
allocation of resources in the welfare of the society. They should have no right to
interfere with the external environment of business.
6. Disregard of marketing mechanism: the doctrine of social responsibilities
implies acceptance of socialist view that political mechanism rather than market
mechanism is the appropriate way to allocate scarce resources to alternative uses.
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7. Burden on customer: if the price in the market for a product does not truly reflect
the relative costs of producing mechanism of the market place will be distorted
The consumers will have to pay higher costs.
8. Difficult implementation: the concept of social responsibility is ill conceived and
ill defined and is difficult to be implemented.
Argument for social responsibility:
1. Business is a part of society: Since business organizations are a part of society they
must have a positive attitude towards the needs of society. Business is only a sub-
system of society and this sub-system must contribute to the welfare of the main
system.
2. Avoidance of govt.regulation: If business does not care of its social responsibility
the govt. has to interfere increasingly in the business system, which adversely affects
the progress of business.3. Long term self-interest of business: the social responsibility of business, if taken
care of in the present ensures the success of the organization in the future.
4. Code of conduct: Members of a profession are bound to follow a code of conduct.
Code of conduct includes rules connected with profession, honesty and morality
which form its base.
5. Business is a creation of the society and so it should respond to the demands of
the society: Since business uses the resources which belong to the society. It is
necessary that every business are obliged to use the social resources for the common
good of society.6. The long-term self interests of the business are best served when business
assumes social responsibilities: There is a growing realization on the part of the
enlightened businessmen that it is in their self-interest to fulfill the demands and
aspirations of the society. People who have good environment, education, and
opportunity make better employees, customers and neighbours for business than those
who are poor, ignorant or oppressed.
7. It is the moral and right thing to do: It is widely agreed that businessmen today
have considerable social power. This power is virtually granted to them by the society
which must have a general relationship with social responsibilities. The socia
responsibilities of businessmen must be proportionate to their social power. If the
businessmen do not assume social responsibilities, their social power must be taken
away by the society through government controls and regulations and other measures.
8. Public image of business would be improved: The business will retain the needed
credibility with the public if it performs its social obligations. It will also avoid
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conflict with the society in its own interest. Good relation with the workers
consumers and suppliers will lead to success of business.
9. The consumers are well informed: They expect higher quality products a
responsible rates. If they dont get fair treatment form business, they will organize
themselves and compel the business its social responsibilities.
MANAGERIAL SKILLS:
1. Planning skills: the manager must passes the skills of thinking the skills of analyzing the
environment, it includes what is happening in the society organization and political
system. He must be able to assess or guess the changes in environment, traits offered by
the changes in environment. He must be able to match two sets of environment on the
basis of external and internal analysis.
2. Organizing skills: organizing skill is needed to specify who will achieve what and how
manager must be in a position of identification of specific activities and specific jobs. Amanager must be clear about grouping of various jobs, span of management, type of
relationship to be established between various people and various jobs.
3. Leading skill: leadership is the ability of individual to influence the people. Recognition
of human factor is also included in leading skill of human factor various leadership track
like communication and motivation are also included in the leadership skills.
4. Technical skills: technical skills refer to the ability and knowledge in using the
equipment, techniques and procedures involved in performing specific tasks. These skills
require specialized knowledge and proficiency in mechanics of a particular job. A
manager must know which skills should be employed in his particular enterprise and be
familiar enough with their potentiality to ask discerning question of his technica
advisors.
5. Human skills: human skills consist of the ability to work effectively with other people.
These are required to win co-operation of others and to build effective work teams
Human skills are reflected in the way a manager perceives his superiors, subordinates and
peers. An awareness of the importance of human skills should be part of managers
orientation.
6. Conceptual skills: conceptual skills comprise the ability to see whole organization and
interrelationships between its parts. These skills refer to the ability to visualize the entire
picture or to consider a situation in its totality. Such skills help the manager to analyse theforces working in a situation and to take a broad and foresighted view of the organization
7. Diagnostic skills: it includes the ability to determine by analyzing and examination, the
nature and circumstances of a particular condition. It is not only the ability to specify why
something happened but also the ability to develop certain possible outcomes. It is the
ability to it through unimportant aspects and quickly gets though the heart of problem.
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8. Controlling skill: there are certain standards, which are fixed in a way such that
accomplishment of those standards leads to the accomplishment of goals. A manager
must keep check on the activities of subordinates and must rectify them if there are any
problems.
9. Decision making skills: there are two types of decisions to be taken by the manager.
(i) Routine and program decision
(ii) Non-routine and non-program decisions.
The course of action to be followed is as under:
1. The manager must be in a position to identify the problem.
2. Reaching to the main cause or the problem.
3. Searching for the alternative solution.
4. Comparing merits and demerits of each solution.
5. Selecting the best course of action.
6. Formulating the plan by the application of the alternatives.
Responsibilities of manager:
1. Responsibility towards suppliers: people who supply raw material, mechanica
components, financial institutions and advertising agencies. It is the duty or says
responsibility of the manager that the suppliers are being paid at the time.
2. Responsibility towards distributors: it is the responsibility of the manager to check
regular supply of the product. Product must be checked for the quality, packaging (as in
the case of children packaging plays a very important role). There must be free testing ofgoods that is distribution of samples. There should be fair return on investment that is fair
commission must be paid. To motivate them the organisation must reward them, credit
facilities must be made available to the middle class people etc.
You can survive in the vest way if the industry will survive:
a. You can take the advantage by showing collectiveness.
b. Compiling with the norms lay down by the association.
c. Providing correct information to organisation.
d. Sharing latest knowledge.
e. Supporting the individual members of the association.
f. Indulging in fair and ethical competition.g. Not using any political or other strategies.
3. Responsibility towards union: employees union is recognized as the enemy of the
organisation.
4. Responsibility towards govt.: Birth growth and death of any organisation will generate
according to statuary provisions and these will be governed by the government of the
organisation and this can be done by
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(i) Sending the correct information.
(ii) Taxes and duties must be paid regularly.
(iii) Organisation must try to operate as a model citizen.
(iv) Organisation must not try to damage the culture of that area and must
try to maintain the rich culture of that area.
5. Responsibility towards customers:
6. Responsibility towards society:
7. Responsibility towards competitors:
8. Responsibility towards workers:
9. Responsibility towards shareholders or owners:
Roles of a manager:
There are different types of managerial roles some of them are given below:
1. Figurehead: In this role manager performs symbolic duties required by the status of his
office. Making speeches, bestowing honors, welcoming official visitors, distributing gifts
to retiring employees are examples of such ceremonial and social duties.
2. Leader: This role defines the managers relationship with his own subordinates. The
manager sets an example, legitimizes the power of subordinates and brings their needs in
accord with those of his organisation.
3. Liaison:It describes the managers relationship with the outsiders. A manager maintains
mutually beneficial relations with other organisations, governments, industry groups etc.
4. Monitor: It implies seeking and receiving information about his organisation and
external events. An example is picking up a rumor about his organisation.
5. Disseminators: It involves transmitting the informations and judgments to the members
of the organisations. The information relates to internal operations and externa
environment. A manager calling a staff meeting after a business trip is an example of
such a role.
6. Spokesman: In this role, a manager speaks for his organisation. He hobbies and depends
his enterprise. A manager addressing the trade union is an example.
7. Entrepreneur: It involves initiating changes or acting as a change agent. For example a
manager decides to launch a feasibility study for setting up a new plant.
8. Disturbance handler:This refers to takingcharge when the organisation faces a problemor crises. For example a strike, feud between subordinates, boss of an important
customer. A manager handles conflicts, complaints and competitive actions.
9. Resource allocate: In this role a manager approves budgets and schedules sets priorities
and distribute resources.
10. Negotiator: As a negotiator a manager bargains with suppliers, dealers, trade unions
agents etc.
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Functions of management:
Planning:
It is a process of thinking before doing. It involves determinations of goals and theactivities required to be performed to achieve the goals. It consists:
What is to be done?
(i) How it is to be done?
(ii) Where it is to be done?
(iii) When it is to be done?
(iv) By whom it is to be done?
So planning is a process of shorting out the path for attaining the determined objective of
the business. Over all planning is deciding that in present, what is to do in future.
Organising:Organizing refers to the way in which work of a group of people is arranged and
distributed among the group members to achieve the objectives of an organisation. As a
function of management organizing refers to the following:
(a) Bringing together human and non-human resources that
is the work to be done and its distribution in human resources.
(b) To define and establish authority responsibility relationship for the
achievement of goals.
(c) Determination of objectives.
(d) Division of activities into jobs(e) Fitting individuals into jobs, and
(f) Developing relationships.
In conclusion we can say that organizing refers to distribution of work to the superiors
and sub-ordinates and fixing there authorities and responsibilities.
3. Staffing:
Staffing is the process of determining the manpower requirement that could meet the
companys objectives. Staffing is a managerial function of attracting, acquiring, developing and
maintaining the human resources required to achieve the organisation objective efficiently.Staffing also involves upgrading of quality/skills of the staff to get higher performance
from then. Personnel department of an organisation looks after the function of staffing. Staffing
usually includes the following activities:
(i) Human resource planning.
(ii) Announcing vacant positions, that is recruitment.
(iii) Receiving applications.
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(iv) Administering test.
(v) Interviewing.
(vi) Medical test.
(vii) Final selection and appointment letter.
(viii) Orientation and placement.
4. Directing or Leading:
Directing as a function of management is concerned with instructing, guiding and
inspiring people in the organisation to contribute to the best of their capabilities for the
achievement of organizational objectives. As a conclusion directing includes the following:
(a) Communication: it is the process of passing information and
understanding from one person to another. This process is necessary for making
the subordinates understand what the management expects of them. A manager has
always to tell the subordinates what to do, how to do it and when to do it. He has to
create an understanding in their minds in regard to these matters.(b) Leadership: a good manager must also be an effective leader
Leadership is concerned with influencing the behavior of followers. In order to get
the cooperation of employees, the manager must have leadership skills. The style
of leadership will vary from situation to situation.
(c) Motivation: effective motivation is necessary for getting voluntary
cooperation of the subordinates. Different types of rewards motivate differen
people. Every manager should study the behaviour of individuals working under
him to provide him or her proper inducements. To some financial incentives are
important, while others are motivated by non-pecuniary incentives like job
security, job enlargement, freedom to do work and recognition.
(d) Issuing orders and instruction by the superior.
(e) Leading the subordinates to influence their activities towards
achievement of goals.
(f) To ensure that the subordinates are working as per plans and policies.
5. Controlling:
Controlling is a process of verifying whether actual performance is in accordance to the
planned performance and to take corrective action wherever required.
It involves comparison of actual performance with the planned performance as to qualityquantity, time taken etc. and than analyse the deviations and to take corrective measures to
correct the deviations. It involves the following steps:
1. Establishment of standards.
2. Measurement of actual performance.
3. Comparison of actual performance with the planed performance.
4. Find out deviations.
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5. Taking corrective action.
MANAGERIAL ETHICS:
The term ethics refers to value-oriented decisions and behaviour. The word ethics
comes from the Greek root, ethros, meaning character, giving beliefs, standards, or deals that
pervade a group, a community, a people--------. Today ethics is the study of moral behaviour
the study of how the standards of moral conduct among the individuals are established and
expressed behaviourally. Terms such as business ethics, corporate ethics, medical ethics, or
legal ethics are used to indicate the particular area of application. But to have meaning, the
ethics involved in each area must still refer to the value-oriented decisions and behaviour of
individuals. Ethics refer to a set of moral principles, which should pay a very significant role in
guiding the conduct of managers and employees in the operation of any enterprise. Ethics is
concerned with what is right and what is wrong is human behaviour. It is normative and
prescriptive, not neutral. It addresses the question of what ought to be. Ethics refer both to thebody of moral principles governing a particular society or group and to the personal normal
precepts of an individual.
Some people subscribe to a utilitarian reference in determining what is wrong and what is
right. They hold that a proposed course of action should be judged from the standpoint of
greatest good for the greatest number of people. From this point of view, there are few absolute
standards and each issue must be judged by studying its impact upon all affected parties.
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ETHICS AND SOCIAL RESPONSIBILITIES:
The term social responsibility conveys the moral conduct that relates to such broad
issues as environmental pollution, discrimination, poverty, unemployment and inflation
Accordingly, an organization whose practices contribute to inflation, unemployment, increasedpoverty and like would be viewed as socially irresponsible---as not fulfilling its responsibility to
society. An automobile manufacturer who produces cars with faulty brakes, a pharmaceutical
house that makes false claims about its comd remedies, or a food company house TV ads
promote substandard food items are socially irresponsible.
Some people feel that social responsibility is linked to organisation and ethics to
individuals, but this is not a useful distinction. In the final analyses, decisions are made by
people and therefore, individual managers at some level must assume responsibility for every
corporate decision. The executive who lies about a competitors product, the manufacturer who
markets a highly inflammable article of clothing, the industrialist who dumps pollutants into a
stream-all behaves in an ethically irresponsible way. The most responsible way to distinguishbusiness ethics from social responsibility is in terms of a decisions implications for society as a
whole. Within this frame of reference, business ethics are concerned with microethics (relating
to daily operating decisions with limited social impact), social responsibility is concerned with
macroethics relating to decision with broad implications for a large segment of society.
However this distinction is not even followed in practice. The term ethics is used to
convey both microethics and macroethics.
DIFFICULTIES IN ESTABLISHING MANAGERIAL ETHICS:
The problem of laying down managerial ethics is more complicated than it is in
established professions such as medicine and law. The physician and lawyer understand clearly
that their responsibility is to the patient or the client. The manager is torn between the interests
of owners, employees and customers so that the client group is often impossible to identify
and isolate. Whereas the physicians actions are ethical if the patients interests are served,
the manager enjoys no such security.
Established medical and legal associations have the legitimate authority to enforce
standards of behaviour. There is no comparable management organisation that possessed the
right to enforce ethical standards. Therefore, we have great difficulty in resolving the problems
caused by questionable acts such as paying bribes or similar actions unless a law is violated. In
management, the legal system also becomes the ethical system and where higher standards of
behaviour than those required by law are desired, there is no way to enforce them.
There are four ways to establish acceptable standards of behaviour. The first is the
establishment of minimum standards of behaviour by law. But if law dictates ethical behaviour
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the true meaning of personal morality, individual responsibility and free choice is lost
Secondly, an attempt should be made to develop accepted code of ethics to guide managerial
action. In India and other countries, management associations have attempted this approach
But how to enforce the standards and make allowances for organizational and environmental
differences is the main problem.
The third approach is to follow the lead of medicine, law, engineering and accounting and
establish a professional society to enforce codes of behaviour for the managers. This option
would, however, require a new type of management organisation with mandatory membership,
professional certification, and so on. Nothing approaching this presently exists. Any move n this
direction would be, at best, long-range in character. One final option is the development of
individual organizational code of behaviour. This idea has a great deal of support and short-
term promise. But the individual organizational codes do not provide for uniform standards
required of business.
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EVOLUTION OF MANAGEMENT THOUGHT:
1. Classical (Traditional) approach:
(a) Bureaucracy (Webers)
(b) Scientific management (Taylors)
(c) Management process school (Fayol) (Administrative theory)
Human relations approach (Neo-classifical approach) (Elton mayo) (It helps inloving and caring the employees, it held the stress on social aspects only):
Behavioural science approach (Neo-classifical approach):
Systems approach (Modern approach) (There should harmony among the sub-systems
and among different departments of organisation):
Contingency approach (Modern approach) (different theories needed for different
situations):
Quantitative approach (Modern approach):
Classical theory:
The classical organisation theory is also called the traditional theory. In this theory, we
shall discuss the ideas of several contributors such as Taylor, Fayol, Luther Gulick, and Max
Weber. All these thinkers were dissatisfied, in one way or the other, with the organizational
practices of their time.
The classical organisation theorists dealt almost exclusively with the anatomy of formal
organisation. Organisation is treated like a machine and so making each individual, working in
the organisation efficient, can increase efficiency. For instance, F.W. Taylor emphasized on
division of labour, fixing everybodys work for the day and functional formanship. That is why;
Taylors scientific management has been referred to as machine theory. It may be noted that
scientific management group emphasized efficiency of lower levels of organisation. It was
Henri Fayol who showed concern for efficiency at the higher levels for the first time.
Features:
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The classical theory is more or less mechanical in nature as is revealed by its following
features:
a. Classical organisation theory is built around an accounting model.
b. The relationship between workers and management is established through
formal communications, defined tasks and accountability and formalized procedures and
practices to minimize conflict between them.
c. The worker is essentially an economic man who can be motivated basically
by economic rewards. Money is considered the main motivator under this theory.
d. This approach to the organisation is the embodiment of the extra pair of
hands concept.
e. In designing the hob and in picking the extra pair of hands, classical theory
assumes man to be relatively homogenous and relatively unmodifiable.
f. Stability of the employees-stability in the sense of minimizing changes
within the employees-is a goal in the organisation.
g. Classical theory is in its essential character centralized, and the integrationof the system is achieved though the authority and control of the central mechanism.
Criticism of classical theory:
The classical theory is criticized on the following grounds:
(a) Closed system: Classical theorists have viewed organisation as a closed system,
that is, having no interaction with the environment. This assumption is totally unrealistic.
A modern organisation is an open dynamic system, which has interaction with the
environment.
(b) Unrealistic assumption about human behaviour: The classical writers lacked
sensibility to the Behavioural dimensions of an organisation and made over-simplified
and mechanistic assumptions for the smooth running of organisation ignoring all
complexities of human who perform tasks assigned to them and ignored their social
psychological and motivational aspects of human behaviour. Human behaviour is most
unpredictable and complex. This assumption of classical writhers led the workers to
frustration, conflict and failure and thus made man subordinate to the organisation.
(c) Inadequate emphasis on human beings: the interplay of individual personality
informal groups and inter-organisational conflicts in the formal structure appears to be
neglected by the classical writers. Bennis feels that the focus of classical theory is on
organisation without people.(d) Economic rewards as main motivators: the assumption that people at work can
be motivated solely through economic rewards is also wrong. Several researches in
human behaviour have contradicted this assumption. Non-monetary factors like better
status and job enrichment can also motivate the workers.
(e) Hierarchical structure: the classical theory is based upon the hierarchical
structure that establishes the authority relationship between individuals in an
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organisation. It attempted to prescribe the right organisational structure. This was a very
narrow approach as it concentrated only on line and staff structures. The classical writers
did not explore why certain forms of organisational structure are more effective than
others.
(f) Over emphasis on universality: classical theorists have claimed that these
principles have universal application. This suggests that the same principles can be
applied in: (i) different organisations, (ii) different management levels in the same
organisation, and (iii) different functions of the same organisation. The empirica
researches, however, suggest that none of the principles has such characteristics
Moreover, there are many of the principles, which are actually contradictory with other
principles. For example, principle of specialization is quite in conflict with the principles
of unity of command. Peter Drucker, Ernest Dale, etc. have also criticized universality
concept.
(g) Bureaucratic behaviour: Webers ideal bureaucracy, a major constituent of
classical theory, suggested strict adherence to rules and regulations. The scope forindividual initiative and their contribution to the organisation goal is thus limited. The
result is red-tapism and observation of rules and regulations becomes the main objective
while the real objectives for which these rules and regulations are formed are forgotten.
Bureaucracy:
According to the name bureaucracy theory was evolved by the German sociologist Max
Weber (1864-1920). The theory of bureaucracy is based upon hierarchy of authority and web of
rules and relations. It visualizes a machine model of organisation characterized by impersonal
control over human beings.
Characteristics:
(a) A well-defined hierarchy of authority with clear lines of authority and control and
responsibility concentrated at the top of the hierarchy.
(b) A high degree of specialization.
(c) A division of work based on functional departmentation.
(d) A system of rules covering the rights and duties of employees.
(e) A definite system of procedures for dealing with the work situation and
rationally coordinating activities.(f) A centralized system of written documents (the files) for collecting and
summarizing the activities of the organisation.
(g) Impersonality of relationships between employees.
(h) Recruitment of managers on the basis of ability and technical knowledge.
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The bureaucracy, or bureaucratic model, was one of the first theories of organisation. It
was a theory; Weber hoped that would be used to understand how and why organisations were
structured as they were, and the standard against which other organisations would be compared.
But like most ideal forms of anything it was an extreme, an exaggeration. Having some
specialization, adequate procedures and rules, and some centralization was and is clearly better
than having no organisation at all. But Webers bureaucratic model quickly became
synonymous with a rigid, unbending, inflexible structure manned by robots.
Criticism of bureaucracy:
Today when we hear the word bureaucracy, it immediately brings to mind visions of a
ponderous, slowly moving organisation-one steeped in red tape, meaningless hurdles, and
inefficiency. Various grounds of criticism of bureaucracy are as under:
1. The specialization of labour often inhibits effective communication among
technical specialists and between higher and lower levels of the organisation.2. The procedures and rules sometimes encourage organisational members to act
mechanically rather than exercising initiative and using their inherent creativity. They
often breed resistance to change.
3. Promotions in real life can result from whom one knows and how one plays the
organisation game rather from technical ability. Competent people may be denied
promotion.
4. Bureaucracy involves excessive paperwork, as every decision must be put in
writing. All documents have to be maintained in their draft and original forms. This leads
to great wastage of time, stationery and space.
5. Personnel in a bureaucracy tend to use their positions and resources to perpetuate
self-interests or the interests of their sub-units. Every superior ties to increase the number
of his subordinates as if this number is considered a symbol of power and prestige. It is
hard to destroy bureaucracy even if it has outlived its utility.
6. Bureaucratic procedures involve inordinate delays and frustration in the
performance of tasks. The procedures are nevertheless valued, perpetuated and multiplied
for their own sake as also to pass the buck.
Despite its drawbacks, bureaucracy has become an integral feature of modern
organisations. It cannot be wished away. It is, therefore necessary to overcome its negativeaspects through proper application of rules and regulations, and reconciling the individual needs
and organisational goals.
F.W. Taylors scientific management (1856-1916):
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F.W. Taylor scientific management means managing the affairs of an organisation
scientifically in contrast to the rule of thumb approach.
According to him, scientific management is the art of knowing exactly what you want
men to do and then that they do it in the best and cheapest way.
He is regarded as the father of scientific management, the main objective of scientific
management was to eliminate wastage and increase the all round efficiency in the working of
the organisation.
He was the first person who insisted on the introduction of scientific methods in
management. He launched a new movement in 1955, which is known as scientific
management. That is why; Taylor is regarded as the father of scientific management.
He was born in 1856 in Philadelphia, U.S.A. he started his career as an apprentice in a
small machine making shop in 1870 and rose to the position of chief engineer of Midvale Steel
works in 1884 at the age of 28. Taylor conducted a series of experiments over a period of more
than two decades. He experimented with machine tools, speed metals and the like. One of his
experiments led to the discovery of high-speed steel, which made him very popular. Otherexperiments related to the way men handled materials, machines and tools which led him to the
development of a coordinated system of shop management. In short, he experimented in
different fields to eliminate wastage of all types, increase the efficiency of workers and provide
for functional management.
Taylor was a man of strong will and convictions, he wanted to apply scientific reasoning
to management. After leaving Midvale Steel Works, he joined Bethlehem Steel Company where
he introduced scientific management. He was highly opposed by the management and the
workers and his services were terminated unceremoniously in 1901. Taylor presented his first
paper entitled Shop management was published in 1903; it focused attention on hi
philosophy on management. His famous book principles and methods of scientifi
management was published in 1911 and his other contribution was testimony before the
special house committee which was given in 1912. it may be pointed out that the last two
works were combined in one book entitled scientific management in 1947 by Harper and
Brothers.
Taylors principles of management:
Taylor developed a number of principles of scientific management.
Science, not the rule of thumb: according to this principle scientific methods should bedeveloped and used to perform each job and job should not be done as a rule of thumb, we
should think before doing. For this purpose first normal time required to perform a job should
be determined. Secondly fair days work of the workman be determined. Thirdly the best way of
doing the work and a last maintaining standard working conditions and providing standard tools
and equipments.
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Close co-operation between workers and management (cooperation, not
individualism): according to this principle objectives of organisation can only be achieved by
close cooperation between all the workers and all the levels of management in an organisation
and each superior and subordinate should cooperate each other to achieve the common
objective of the organisation.
Scientific selection, training of the workers: this principle suggests that skills and
experience of the workers must be properly matched with the jobs, which they have performed.
So selection should be based on tests and interviews in specified field, training be given if
required and their capabilities should be developed to the maximum.
Division of work and responsibility (separation of planning and operational works):
there should be clear-cut division of work and responsibility between work and management.
E.g.planning is the work of management and so managers should be responsible for the proper
planning where as execution of plan is the work of workers and so worker should be responsible
for proper execution of planning.
Mental revolution (harmony): in an organisation the personnels (persons who areworking on an organisation) should be made mentally prepared to perform the activities
assigned to them. So management should create suitable working condition and resolve all
problems scientifically and the workers should perform their job devotedly and use th
resources efficiently.
Maximum prosperity for employers and employees: this principle requires that the
aim of management should be to secure maximum prosperity for the employers along with the
maximum welfare of employees.
Criticism of scientific management:
Taylors work was criticised on the following grounds:
1. The use of the word scientific before management was objected because what is
actually meant be scientific management is nothing but a scientific approach to
management.
2. It was argued that the principles of scientific management as advocated by Taylor
were confined mostly to production management. He ignored certain other essential
aspects of management like finance, marketing, accounting and personnel.
3. Taylor advocated the concept of functional foremanship to bring about
specialization in the organisation. But this is not feasible in practice as it violates theprinciple of unity of command.
4. Trade unionists regarded the principles of scientific management as the means to
exploit labour because the wages of the workers were not increased in direct proportion
to productivity increases.
5. Scientific management is based on the assumption that people are motivated by
material gains. Taylor and his associated concentrated on physical and economic needs
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and over-looked the social and ego needs of people. Later experience has revealed that
financial gain is not the only thing that matters. Workers also want job satisfaction
participation and recognition.
6. Scientific management is quite limited in scope. It focused attention completely on
efficiency at the shop floor. As a consequence management became the study of shop
management while the more general aspects were overlooked. Scientific management has
thus been described as a theory of industrial engineering.
7. Increase in work speed: in scientific management the workers are supposed to
work with more speed, which affects their health.
8. no chance to show skill: in scientific management workers are supposed to work
according one schedule and no thought is given to personal within and skill.
9. Monotonous work: the workers are supposes co work only the specified portion
of work continuously for many years the same work for many years make the work
monotonous.
10. Lack of initiative: no chance is left to show their ability only a mechanizedprocess of work is followed.
11. Lack of employment opportunities: more work by lesser worker thus reduces the
chance of more employment.
12. Exploitation: workers are not given their due shares in the gains due to
increased productivity of the enterprise. Comparatively, less efficient workers who are
failed to achieve the standard are penalized wages do not rise in
the same proportion in which productivity of labour increases.
13. Weakness of trade unionism: scientific management reduces the role of trade
unions as standards of outputs, wages and working conditions are determined on
scientific bases. There is little scope of bargaining on this ratter. The differential piece-
wage divides the worker into efficient and inefficient. Scientific management may lead to
accuracy, as workers have to carry out the instructions of their functional basis. It cuts the
roots of trade union movement.
OR
Speeding up of workers: workers feel that scientific management is nothing but a device
to force workers to a greater speed, without much regard for their health and safety. It creates a
lot of physical and mental strain on them.Loss of workers skill and initiative: he workers had to work according to the
instructions of the foreman. This leads to loss of initiative from the workers and they cannot
suggest better method of work. They further allege and too much of standardization, a pre-
requisite for scientific term, due to loss of workers initiative it results into lower productivity.
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Monotony: under this function of planning is separated from that of doing. Every worker
is expected to perform his small part of a job due to specialization. This makes the work
monotonous and worker lends to lose interest in his job.
Unemployment: Scientific management reduces the number of processes and motions of
workers, increases the hourly or daily output per worker, increases their efficiency by
standardization and decision of labour, thereby, it creates unemployment by requiring lesser
number of workers.
Exploitation of workers: the workers feel that gains increased profit is taken away by
investors and only insignificant benefit is given to the workers by way of increase in wages and
bonus.
Discrimination between workers: under this, efficient workers get more wages as
compared to the inefficient ones due to the differental wage incentive scheme.
Undemocratic in nature: workers object that scientific management is undemocratic in
nature as it gives absolute control over workers to the functional bosses. The workers have to
follow the instruction of the bosses without thinking on the part of the workers.Unsuitable for small-scale unit: some employers are of the opinion that scientific
management is only suitable for large-scale units. Small-scale units cannot afford to introduce
the scheme of scientific management.
Techniques or elements of scientific management:
Functional foremanship: Taylor believed that a single foreman might not be competent
to supervise all functional matters. Functional foremanship involves supervision of a worker by
several specialist foremen. So this concept is opposite of the principle of unity of command.E.g. matter relating to the speed of work of a worker should be supervised by speed supervisor
and repair and quantity there of should be supervised by the repair supervisor.
Standardization of work: according to this technique standards should be fixed at every
level. So that the jobs can be performed efficiently. E.g. standard tools and equipments should
be provided to the workers. Standard working conditions are provided at work place. Standard,
size, quality, weights and other measures should be fixed. Standard time required performing a
unit of job and standard working hours of a fair day. Standard performance of machines in a
standard time.
Simplification of work: the work should be simplified in a way so that an average
worker can easily understand the steps to be performed to do a specified job. Simplification willcertainly improve the efficiency resulting more production and reduction in cost and wastages.
Fatigue study: according to this technique management should determined the amount
and frequency of rest intervals in completing a task. Because human being is bound to feel tired
if works without rest interval for a long period and after getting tired he will not be able to
perform the job with full capacity. But by rest he will regain stamina.
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Method study: there may be various methods to perform a job with different cost
requirements. So the organisation should try to find out the best way to perform the task. E.g
shoes may be manufactured manually or by machines, which ever costs less be adopted.
Deferential wage system: in this technique Taylor suggested that differential wage
system for the wages to the employees on the basis of their performance should be introduced
which will develop the idea/concept do more to earn more. The inefficient worker will also
try to do to the maximum of his capacity and so the habit of doing the best and more in an
efficient manner is develop.
Mental revolution: working of the subordinate and superior is based on whether they are
mentally prepare for doing the job or not. A positive attitude of both towards each other each
necessary there must be an environment in an organisation in which the workers feel that the
management is exploiting them. On the other hand management also should have no concept
that the workers have a tendency of miss use of tools and equipments, resulting wastages.
Time study: time study is a technique, which is used to measure/determine the time that
may be taken by workmen of average skills/ability to perform a job/task. Purpose of time studyis to determine standard time required to perform a specified job and so fair days
work/workman. Time study is conducted with the help of stopwatch.
Motion study: motion study is a technique, which involves close observation of
movements of body and limps required to perform a job. Its purpose is to determine the best
way of doing a job by eliminating the wasteful motion, which will further reduce the fatigue
resulting improvement in efficiency. Micro chronometer is the tool of study.
Administrative theory:
Henri Fayol was a French industrialist. He joined a French mining company in 1860 as an
engineer and rise to the position of its managing director 1888. Through, his long practical
experience Fayol developed a general theory of management. He published a book
administration industrial general in French in 1916, which was translated into English in 1929
under the title general and industrial management.
Fayol began by dividing all industrial activities into six groups:
1. Technical,
2. Commercial,
3. Financial,4. Security,
5. Accounting, and
6. Managerial.
He gives a lot of principles of management which are explained below:
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Division of labour: division of labour means dividing the work among members of
organisations. It leads to specialization. It increases the efficiency of individual employee.
Parity of authority and responsibility: authority and responsibility are two sides of
same coin. Authority refers to the right of a superior to give orders to subordinates regarding
use resources of the organisation and to take decisions on specified matter. Responsibility on
the other hand, means obligation with respect to the performance of functions and achieving
goals. There must be parity between authority and responsibility.
Discipline: discipline in the context of management means obedience that is complying
with rules and regulations of the organisation.
Unity of command: according to this principle, a subordinate should receive orders and
be accountable to one and only one superior. No employees therefore, should be asked to
receive orders and instructions from more than one superior.
Unity of direction: efforts of all the members of the organisation should be directed
towards common goals. This principle ensures unity of action, and coordination.Subordination of individual interest to general interest: the interest of the
organisation must precedence over the interest of individuals. In other words, individuals should
give up their personal interest in the interest of the enterprise.
Fair remuneration to employees: remuneration of employees should be fair and
reasonable wages should be determined on the basis work assigned cost of living, and financial
position of the business.
Centralisation and decentralization: when top management retains most of the decision
making authority, is called centralisation, sharing authority downwards leads to decentralization
Fayol says that an organisation should strive to achieve a balance between centralisation and
decentralization.
Scalar chain: it includes the chain of superiors from the top to the lowest rank in
management. Each manager is superior to the manager below him but he is also subordinate to
his own superior. According to this principle each superior is to provide direction or instruction
to immediate subordinate and subordinate to suggest or to complain to his immediate superior
Some times orders, directions, suggestion, complain got delate. While communicating because
of the strict compliance of scalar chain. Therefore the avoid the delays Fayol suggested the
concept of gang plank. According to which two employees at the same level can
communicate each other directly. But each one of them must inform to his own superior.
Order: this principle is important to make the best use of personal and to avoidunnecessary delay in work. The principle is concerned with arrangement of things, which is
called material orders, and placement of people called social order.
Equity: the principle of equity suggests tha