Introduction and Evolution of Management-Module 1

Management is a universal phenomenon. It is a very popular and widely used term. All organizations - business, political, cultural or social are involved in management because it is the management which helps and directs the various efforts towards a definite purpose. According to Harold Koontz, Management is an art of getting things done through and with the people in formally organized groups. It is an art of creating an environment in which people can perform and individuals can co-operate towards attainment of group goals . According to F.W. Taylor, Management is an art of knowing what to do, when to do and see that it is done in the best and cheapest way . Management is a purposive activity. It is something that directs group efforts towards the attainment of certain pre - determined goals. It is the process of working with and through others to effectively achieve the goals of the organization, by efficiently using limited resources in the changing world. !f course, these goals may vary from one enterprise to another. ".g.# $or one enterprise it may be launching of new products by conducting market surveys and for other it may be profit ma%imization by minimizing cost. Management involves creating an internal environment# - It is the management which puts into use the various factors of production. &herefore, it is the responsibility of management to create such conditions which are conducive to ma%imum efforts so that people are able to perform their task efficiently and effectively. It includes ensuring availability of raw materials, determination of wages and salaries, formulation of rules ' regulations etc. &herefore, we can say that good management includes both being effective and efficient. (eing effective means doing the appropriate task i.e, fitting the s)uare pegs in s)uare holes and round pegs in round holes. (eing efficient means doing the task correctly, at least possible cost with minimum wastage of resources.

!eatures of Management
Management is an activity concerned with guiding human and physical resources such that organizational goals can be achieved. *ature of management can be highlighted as# +. Management is "oal-#riented$ &he success of any management activity is assessed by its achievement of the predetermined goals or ob,ective. Management is a purposeful activity. It is a tool which helps use of human ' physical resources to fulfill the predetermined goals. $or e%ample, the goal of an enterprise is ma%imum consumer satisfaction by producing )uality goods and at reasonable prices. &his can be achieved by employing efficient persons and making better use of scarce resources. -. Management integrates %uman, &hysical and !inancial 'esources$ In an organization, human beings work with non-human resources like machines. Materials, financial assets, buildings etc. Management integrates human efforts to those resources. It brings harmony among the human, physical and financial resources.

.. Management is (ontinuous$ Management is an ongoing process. It involves continuous handling of problems and issues. It is concerned with identifying the problem and taking appropriate steps to solve it. ".g. the target of a company is ma%imum production. $or achieving this target various policies have to be framed but this is not the end. Marketing and Advertising is also to be done. $or this policies have to be again framed. /ence this is an ongoing process. 0. Management is all &ervasive$ Management is re)uired in all types of organizations whether it is political, social, cultural or business because it helps and directs various efforts towards a definite purpose. &hus clubs, hospitals, political parties, colleges, hospitals, business firms all re)uire management. 1henever more than one person is engaged in working for a common goal, management is necessary. 1hether it is a small business firm which may be engaged in trading or a large firm like &ata Iron ' 2teel, management is re)uired everywhere irrespective of size or type of activity. 3. Management is a "roup Activity$ Management is very much less concerned with individual4s efforts. It is more concerned with groups. It involves the use of group effort to achieve predetermined goal of management of A(5 ' 5o. is good refers to a group of persons managing the enterprise.

#)*ectives of Management
&he main ob,ectives of management are# +. "etting Ma+imum 'esults with Minimum Efforts - &he main ob,ective of management is to secure ma%imum outputs with minimum efforts ' resources. Management is basically concerned with thinking ' utilizing human, material ' financial resources in such a manner that would result in best combination. &his combination results in reduction of various costs. -. Increasing the Efficiency of factors of &roduction - &hrough proper utilization of various factors of production, their efficiency can be increased to a great e%tent which can be obtained by reducing spoilage, wastages and breakage of all kinds, this in turn leads to saving of time, effort and money which is essential for the growth ' prosperity of the enterprise. .. Ma+imum &rosperity for Employer , Employees - Management ensures smooth and coordinated functioning of the enterprise. &his in turn helps in providing ma%imum benefits to the employee in the shape of good working condition, suitable wage system, incentive plans on the one hand and higher profits to the employer on the other hand. 0. %uman )etterment , -ocial .ustice - Management serves as a tool for the upliftment as well as betterment of the society. &hrough increased productivity ' employment, management ensures better standards of living for the society. It provides ,ustice through its uniform policies.

Importance of Management
+. It helps in Achieving "roup "oals - It arranges the factors of production, assembles

and organizes the resources, integrates the resources in effective manner to achieve goals. It directs group efforts towards achievement of pre-determined goals. (y defining ob,ective of organization clearly there would be no wastage of time, money and effort. Management converts disorganized resources of men, machines, money etc. into useful enterprise. &hese resources are coordinated, directed and controlled in such a manner that enterprise work towards attainment of goals. -. #ptimum /tilization of 'esources - Management utilizes all the physical ' human resources productively. &his leads to efficacy in management. Management provides ma%imum utilization of scarce resources by selecting its best possible alternate use in industry from out of various uses. It makes use of e%perts, professional and these services leads to use of their skills, knowledge, and proper utilization and avoids wastage. If employees and machines are producing its ma%imum there is no under employment of any resources. .. 'educes (osts - It gets ma%imum results through minimum input by proper planning and getting ma%imum output. Management uses physical, human and financial resources in such a manner which results in best combination. &his helps in cost reduction. 0. Esta)lishes -ound #rganization - *o overlapping of efforts 6smooth and coordinated functions7. &o establish sound organizational structure is one of the ob,ective of management which is in tune with ob,ective of organization and for fulfillment of this, it establishes effective authority ' responsibility relationship i.e. who is accountable to whom, who can give instructions to whom, who are superiors ' who are subordinates. Management fills up various positions with right persons, having right skills, training and )ualification. All ,obs should be cleared to everyone. 3. Esta)lishes E0uili)rium - It enables the organization to survive in changing environment. It keeps in touch with the changing environment. 1ith the change is e%ternal environment, the initial co-ordination of organization must be changed. 2o it adapts organization to changing demand of market 8 changing needs of societies. It is responsible for growth and survival of organization.

!unctions of Management
Management has been described as a social process involving responsibility for economical and effective planning ' regulation of operation of an enterprise in the fulfillment of given purposes. It is a dynamic process consisting of various elements and activities. &hese activities are different from operative functions like marketing, finance, purchase etc. 9ather these activities are common to each and every manger irrespective of his level or status. :ifferent e%perts have classified functions of management. According to ;eorge ' <erry, &here are four fundamental functions of management i.e. planning, organizing, actuating and controlling . According to /enry $ayol, &o manage is to forecast and plan, to organize, to command, ' to control . 1hereas =uther ;ullick has given a keyword 4>!2:5!9(4 where > stands for >lanning, ! for !rganizing, 2 for 2taffing, : for :irecting, 5o for 5o-ordination, 9 for reporting ' ( for (udgeting. (ut the most widely accepted are functions of management

given )y 1oontz and #23onnell i.e. &lanning, #rganizing, -taffing, 3irecting and (ontrolling.

$or theoretical purposes, it may be convenient to separate the function of management but practically these functions are overlapping in nature i.e. they are highly inseparable. "ach function blends into the other ' each affects the performance of others.

1. Planning

It is the basic function of management. It deals with chalking out a future course of action ' deciding in advance the most appropriate course of actions for achievement of predetermined goals. According to ?!!*&@, >lanning is deciding in advance - what to do, when to do ' how to do. It bridges the gap from where we are ' where we want to be . A plan is a future course of actions. It is an e%ercise in problem solving ' decision making. >lanning is determination of courses of action to achieve desired goals. &hus, planning is a systematic thinking about ways ' means for accomplishment of predetermined goals. >lanning is necessary to ensure proper utilization of human ' nonhuman resources. It is all pervasive, it is an intellectual activity and it also helps in avoiding confusion, uncertainties, risks, wastages etc.
2. Organizing

It is the process of bringing together physical, financial and human resources and developing productive relationship amongst them for achievement of organizational goals. According to /enry $ayol, &o organize a business is to provide it with everything useful or its functioning i.e. raw material, tools, capital and personnel4s . &o organize a

business involves determining ' providing human and non-human resources to the organizational structure. !rganizing as a process involves#

Identification of activities. Classification and grouping of activities. Assignment of duties. Delegation of authority and creation of responsibility. Coordinating authority and responsibility relationships.

3. Staffing

It is the function of manning the organization structure and keeping it manned. 2taffing has assumed greater importance in the recent years due to advancement of technology, increase in size of business, comple%ity of human behavior etc. &he main purpose o staffing is to put right man on right ,ob i.e. s)uare pegs in s)uare holes and round pegs in round holes. According to ?ootz ' !4:onnell, Managerial function of staffing involves manning the organization structure through proper and effective selection, appraisal ' development of personnel to fill the roles designed and the structure . 2taffing involves#

Manpower Planning (estimating man power in terms of searching, choose the person and giving the right place). Recruitment, selection placement. !raining development.

Remuneration. "erformance appraisal. "romotions transfer.

4. Directing

It is that part of managerial function which actuates the organizational methods to work efficiently for achievement of organizational purposes. It is considered life-spark of the enterprise which sets it in motion the action of people because planning, organizing and staffing are the mere preparations for doing the work. :irection is that inert-personnel aspect of management which deals directly with influencing, guiding, supervising, motivating sub-ordinate for the achievement of organizational goals. :irection has following elements#

#upervision $otivation %eadership Communication

-upervision- implies overseeing the work of subordinates by their superiors. It is the act of watching ' directing work ' workers. Motivation- means inspiring, stimulating or encouraging the sub-ordinates with zeal to work. >ositive, negative, monetary, non-monetary incentives may be used for this purpose. 4eadership- may be defined as a process by which manager guides and influences the work of subordinates in desired direction. (ommunications- is the process of passing information, e%perience, opinion etc from one person to another. It is a bridge of understanding.
5. Controlling

It implies measurement of accomplishment against the standards and correction of deviation if any to ensure achievement of organizational goals. &he purpose of controlling is to ensure that everything occurs in conformities with the standards. An efficient system of control helps to predict deviations before they actually occur. According to Theo Haimann, 5ontrolling is the process of checking whether or not proper progress is being made towards the ob,ectives and goals and acting if necessary, to correct any deviation . According to ?oontz ' !4:onnell 5ontrolling is the measurement ' correction of performance activities of subordinates in order to make sure that the enterprise ob,ectives and plans desired to obtain them as being accomplished . &herefore controlling has following steps#
.

&stablishment of standard performance. . $easurement of actual performance.

. .

Comparison of actual performance with the standards and finding out deviation if any. Corrective action.

!ourteen &rinciples of Management as given )y %enri !ayol

1. Division of Labor a. 'enry (ayol has stressed on the speciali)ation of *obs. b. 'e recommended that wor+ of all +inds must be divided subdivided and allotted to various persons according to their e,pertise in a particular area. c. #ubdivision of wor+ ma+es it simpler and results in efficiency.

d. It also helps the individual in ac-uiring speed, accuracy in his performance. e. #peciali)ation leads to efficiency economy in spheres of business.

2. Parity of Aut ority ! "es#onsibility a. Authority responsibility are co.e,isting. b. If authority is given to a person, he should also be made responsible. c. In a same way, if anyone is made responsible for any *ob, he should also have concerned authority. d. Authority refers to the right of superiors to get e,actness from their sub.ordinates whereas responsibility means obligation for the performance of the *ob assigned. e. !here should be a balance between the two i.e. they must go hand in hand. f. Authority without responsibility leads to irresponsible behavior whereas responsibility without authority ma+es the person ineffective.

3. $nity of Co%%an&' Princi#le of One (oss a. A sub.ordinate should receive orders and be accountable to one and only one boss at a time. b. In other words, a sub.ordinate should not receive instructions from more than one person because . . . . . . . . . It undermines authority /ea+ens discipline Divides loyalty Creates confusion Delays and chaos &scaping responsibilities Duplication of wor+ 0verlapping of efforts

c. !herefore, dual sub.ordination should be avoided unless and until it is absolutely essential. d. 1nity of command provides the enterprise a disciplined, stable orderly e,istence. e. It creates harmonious relationship between superiors and sub.ordinates. 4. $nity of Direction a. (ayol advocates one head one plan which means that there should be one plan for a group of activities having similar ob*ectives. b. Related activities should be grouped together. !here should be one plan of action for them and they should be under the charge of a particular manager. c. According to this principle, efforts of all the members of the organi)ation should be directed towards common goal.

d. /ithout unity of direction, unity of action cannot be achieved. e. In fact, unity of command is not possible without unity of direction. Basis Unity of command Unity of direction

$eaning

It implies that a sub.ordinate should receive orders instructions from only one boss.

It means one head, one plan for a group of activities having similar ob*ectives.

2ature

It is related to the functioning of personnel3s.

It is related to the functioning of departments, or organi)ation as a whole.

2ecessity

It is necessary for fi,ing responsibility of each subordinate.

It is necessary for sound organi)ation.

Advantag e

It avoids conflicts, confusion

chaos.

It avoids duplication of efforts and wastage of resources.

Result

It leads to better superior sub.ordinate relationship.

It leads to smooth running of the enterprise.

&herefore it is obvious that they are different from each other but they are dependent on each other i.e. unity of direction is a pre-re)uisite for unity of command. (ut it does not automatically comes from the unity of direction.
5. )*uity a. &-uity means combination of fairness, +indness b. !he employees should be treated with +indness of them. *ustice. e-uity if devotion is e,pected

c. It implies that managers should be fair and impartial while dealing with the subordinates. d. !hey should give similar treatment to people of similar position. e. !hey should not discriminate with respect to age, caste, se,, religion, relation etc. f. &-uity is essential to create and maintain cordial relations between the managers and sub.ordinate.

g. 4ut e-uity does not mean total absence of harshness. h. (ayol was of opinion that, 5at times force and harshness might become necessary for the sa+e of e-uity6. +. Or&er a. !his principle is concerned with proper people. systematic arrangement of things and

b. Arrangement of things is called material order and placement of people is called social order. c. Material order. !here should be safe, appropriate and specific place for every article and every place to be effectively used for specific activity and commodity. d. Social order. #election and appointment of most suitable person on the suitable *ob. !here should be a specific place for everyone and everyone should have a specific place so that they can easily be contacted whenever need arises. ,. Disci#line a. Accordin b. g to (ayol, 5Discipline means sincerity, obedience, respect of authority observance of rules and regulations of the enterprise6. c. !his principle applies that subordinate should respect their superiors and obey their order. d. It is an important re-uisite for smooth running of the enterprise. e. Discipline is not only re-uired on path of subordinates but also on the part of management. f. Discipline can be enforced if . . !here are good superiors at all levels. . !here are clear fair agreements with wor+ers. . #anctions (punishments) are *udiciously applied. -. .nitiative a. /or+ers should be encouraged to ta+e initiative in the wor+ assigned to them. b. It means eagerness to initiate actions without being as+ed to do so. c. (ayol advised that management should provide opportunity to its employees to suggest ideas, e,periences new method of wor+. d. It helps in developing an atmosphere of trust and understanding. e. "eople then en*oy wor+ing in the organi)ation because it adds to their )eal and energy. f. !o suggest improvement in formulation implementation of place.

g. !hey can be encouraged with the help of monetary

non.monetary incentives.

/. 0air "e%uneration a. !he -uantum and method of remuneration to be paid to the wor+ers should be fair, reasonable, satisfactory rewarding of the efforts. b. As far as possible it should accord satisfaction to both employer and the employees. c. /ages should be determined on the basis of cost of living, wor+ assigned, financial position of the business, wage rate prevailing etc. d. %ogical appropriate wage rates and methods of their payment reduce tension differences between wor+ers management creates harmonious relationship and pleasing atmosphere of wor+. e. (ayol also recommended provision of other benefits such as free education, medical residential facilities to wor+ers. 11. Stability of 2enure a. (ayol emphasi)ed that employees should not be moved fre-uently from one *ob position to another i.e. the period of service in a *ob should be fi,ed. b. !herefore employees should be appointed after +eeping in view principles of recruitment selection but once they are appointed their services should be served. c. According to (ayol. 5!ime is re-uired for an employee to get used to a new wor+ succeed to doing it well but if he is removed before that he will not be able to render worthwhile services6. d. As a result, the time, effort and money spent on training the wor+er will go waste. e. #tability of *ob creates team spirit and a sense of belongingness among wor+ers which ultimately increase the -uality as well as -uantity of wor+. 11. Scalar C ain a. (ayol defines scalar chain as 3!he chain of superiors ranging from the ultimate authority to the lowest6. b. &very orders, instructions, messages, re-uests, e,planation etc. has to pass through #calar chain. c. 4ut, for the sa+e of convenience +nown as 7ang "lan+. urgency, this path can be cut short and this is

d. A Gang Plank is a temporary arrangement between two different points to facilitate -uic+ easy communication as e,plained below8

In the figure given, if : has to communicate with ; he will first send the communication upwards with the help of 5, ( to A and then downwards with the help of " and $ to ; which will take )uite some time and by that time, it may not be worth therefore a gang plank has been developed between the two.
e. Gang Plank clarifies that management principles are not rigid rather they are very fle,ible. !hey can be molded and modified as per the re-uirements of situations 12. Sub'Or&ination of .n&ivi&ual .nterest to 3eneral .nterest a. An organi)ation is much bigger than the individuals it constitutes therefore interest of the underta+ing should prevail in all circumstances. b. As far as possible, reconciliation should be achieved between individual and group interests. c. 4ut in case of conflict, individual must sacrifice for bigger interests. d. In order to achieve this attitude, it is essential that . . &mployees should be honest sincere. . "roper regular supervision of wor+. . Reconciliation of mutual differences and clashes by mutual agreement. (or e,ample, for change of location of plant, for change of profit sharing ratio, etc. 13. )s#irit De4 Cor#s 5can be ac ieve& t roug unity of co%%an&6'2ea% S#irit a. It refers to team spirit i.e. harmony in the wor+ groups and mutual understanding among the members. b. &spirit De3 Corps inspires wor+ers to wor+ harder.

c. (ayol cautioned the managers against dividing the employees into competing groups because it might damage the moral of the wor+ers and interest of the underta+ing in the long run. d. !o inculcate &spirit De3 Corps following steps should be underta+en .

!here should be proper co.ordination of wor+ at all levels #ubordinates should be encouraged to develop informal relations among themselves. &fforts should be made to create enthusiasm and +eenness among subordinates so that they can wor+ to the ma,imum ability. &fficient employees should be rewarded and those who are not up to the mar+ should be given a chance to improve their performance. #ubordinates should be made conscious of that whatever they are doing is of great importance to the business society.

e. 'e also cautioned against the more use of 4ritain communication to the subordinates i.e. face to face communication should be developed. !he managers should infuse team spirit belongingness. !here should be no place for misunderstanding. "eople then en*oy wor+ing in the organi)ation offer their best towards the organi)ation.

14. Centralization ! De'Centralization a. Centrali)ation means concentration of authority at the top level. In other words, centrali)ation is a situation in which top management retains most of the decision ma+ing authority. b. Decentrali)ation means disposal of decision ma+ing authority to all the levels of the organi)ation. In other words, sharing authority downwards is decentrali)ation. c. According to (ayol, 5Degree of centrali)ation or decentrali)ation depends on no. of factors li+e si)e of business, e,perience of superiors, dependability ability of subordinates etc. d. Anything which increases the role of subordinate is decentrali)ation which decreases it is centrali)ation. anything

e. (ayol suggested that absolute centrali)ation or decentrali)ation is not feasible. An organi)ation should stri+e to achieve a lot between the two.

Management can be defined in detail in following categories#

9. Management as a >rocess :. Management as an Activity

;. Management as a :iscipline <. Management as a ;roup =. Management as a 2cience >. Management as an Art

A. Management as a >rofession

Management as a &rocess
As a process, management refers to a series of inter - related functions. It is the process by which management creates, operates and directs purposive organization through systematic, coordinated and co-operated human efforts, according to ;eorge 9. &erry, Management is a distinct process consisting of planning, organizing, actuating and controlling, performed to determine and accomplish stated ob,ective by the use of human beings and other resources . As a process, management consists of three aspects$ +. Management is a social process - 2ince human factor is most important among the other factors, therefore management is concerned with developing relationship among people. It is the duty of management to make interaction between people - productive and useful for obtaining organizational goals. -. Management is an integrating process - Management undertakes the ,ob of bringing together human physical and financial resources so as to achieve organizational purpose. &herefore, is an important function to bring harmony between various factors. .. Management is a continuous process - It is a never ending process. It is concerned with constantly identifying the problem and solving them by taking ade)uate steps. It is an ongoing process.

Management as a -cience
2cience is a systematic body of knowledge pertaining to a specific field of study that contains general facts which e%plains a phenomenon. It establishes cause and effect relationship between two or more variables and underlines the principles governing their relationship. &hese principles are developed through scientific method of observation and verification through testing. 2cience is characterized by following main features# +. /niversally accepted principles - 2cientific principles represents basic truth about a particular field of en)uiry. &hese principles may be applied in all situations, at all time ' at all places. ".g. - law of gravitation which can be applied in all countries irrespective of the time. Management also contains some fundamental principles which can be applied universally like the >rinciple of Bnity of 5ommand i.e. one man, one boss. &his principle is

applicable to all type of organization - business or non business. -. E+perimentation , #)servation - 2cientific principles are derived through scientific investigation ' researching i.e. they are based on logic. ".g. the principle that earth goes round the sun has been scientifically proved. Management principles are also based on scientific en)uiry ' observation and not only on the opinion of /enry $ayol. &hey have been developed through e%periments ' practical e%periences of large no. of managers. ".g. it is observed that fair remuneration to personal helps in creating a satisfied work force. .. (ause , Effect 'elationship - >rinciples of science lay down cause and effect relationship between various variables. ".g. when metals are heated, they are e%panded. &he cause is heating ' result is e%pansion. &he same is true for managementC therefore it also establishes cause and effect relationship. ".g. lack of parity 6balance7 between authority ' responsibility will lead to ineffectiveness. If you know the cause i.e. lack of balance, the effect can be ascertained easily i.e. in effectiveness. 2imilarly if workers are given bonuses, fair wages they will work hard but when not treated in fair and ,ust manner, reduces productivity of organization. 0. 5est of 6alidity , &redicta)ility - Dalidity of scientific principles can be tested at any time or any number of times i.e. they stand the test of time. "ach time these tests will give same result. Moreover future events can be predicted with reasonable accuracy by using scientific principles. ".g. /- ' !- will always give /-!. >rinciples of management can also be tested for validity. ".g. principle of unity of command can be tested by comparing two persons - one having single boss and one having - bosses. &he performance of +st person will be better than -nd. It cannot be denied that management has a systematic body of knowledge but it is not as e%act as that of other physical sciences like biology, physics, and chemistry etc. &he main reason for the ine%actness of science of management is that it deals with human beings and it is very difficult to predict their behavior accurately. 2ince it is a social process, therefore it falls in the area of social sciences. It is a fle%ible science ' that is why its theories and principles may produce different results at different times and therefore it is a behavior science. "rnest :ale has called it as a Soft Science. Management as an Art Art implies application of knowledge ' skill to trying about desired results. An art may be defined as personalized application of general theoretical principles for achieving best possible results. Art has the following characters +. &ractical 1nowledge$ "very art re)uires practical knowledge therefore learning of theory is not sufficient. It is very important to know practical application of theoretical

principles. ".g. to become a good painter, the person may not only be knowing different colour and brushes but different designs, dimensions, situations etc to use them appropriately. A manager can never be successful ,ust by obtaining degree or diploma in managementC he must have also know how to apply various principles in real situations by functioning in capacity of manager. -. &ersonal -7ill$ Although theoretical base may be same for every artist, but each one has his own style and approach towards his ,ob. &hat is why the level of success and )uality of performance differs from one person to another. ".g. there are several )ualified painters but M.$. /ussain is recognized for his style. 2imilarly management as an art is also personalized. "very manager has his own way of managing things based on his knowledge, e%perience and personality, that is why some managers are known as good managers 6like Aditya (irla, 9ahul (a,a,7 whereas others as bad. .. (reativity$ "very artist has an element of creativity in line. &hat is why he aims at producing something that has never e%isted before which re)uires combination of intelligence ' imagination. Management is also creative in nature like any other art. It combines human and non-human resources in useful way so as to achieve desired results. It tries to produce sweet music by combining chords in an efficient manner. 0. &erfection through practice$ >ractice makes a man perfect. "very artist becomes more and more proficient through constant practice. 2imilarly managers learn through an art of trial and error initially but application of management principles over the years makes them perfect in the ,ob of managing. 3. "oal-#riented$ "very art is result oriented as it seeks to achieve concrete results. In the same manner, management is also directed towards accomplishment of pre-determined goals. Managers use various resources like men, money, material, machinery ' methods to promote growth of an organization. &hus, we can say that management is an art therefore it re)uires application of certain principles rather it is an art of highest order because it deals with molding the attitude and behavior of people at work towards desired goals.
7anage%ent as bot Science an& Art

Management is both an art and a science. &he above mentioned points clearly reveals that management combines features of both science as well as art. It is considered as a science because it has an organized body of knowledge which contains certain universal truth. It is called an art because managing re)uires certain skills which are personal possessions of managers. 2cience provides the knowledge ' art deals with the application of knowledge and skills. A manager to be successful in his profession must ac)uire the knowledge of science ' the art of applying it. &herefore management is a ,udicious blend of science as well as an art because it proves the principles and the way these principles are applied is a matter of art. 2cience teaches to 4know4 and art teaches to 4do4. ".g. a person cannot become a good singer unless he has knowledge about various ragas ' he also applies his personal skill in the art of singing. 2ame way it is not sufficient for manager to first know the principles but he must also apply them in

solving various managerial problems that is why, science and art are not mutually e%clusive but they are complementary to each other 6like tea and biscuit, bread and butter etc.7. &he old saying that Manager are (orn has been re,ected in favor of Managers are Made . It has been aptly remarked that management is the oldest of art and youngest of science. &o conclude, we can say that science is the root and art is the fruit.

Management as a &rofession
!ver a large few decades, factors such as growing size of business unit, separation of ownership from management, growing competition etc have led to an increased demand for professionally )ualified managers. &he task of manager has been )uite specialized. As a result of these developments the management has reached a stage where everything is to be managed professionally. A profession may be defined as an occupation that re)uires specialized knowledge and intensive academic preparations to which entry is regulated by a representative body. &he essentials of a profession are# +. -pecialized 1nowledge - A profession must have a systematic body of knowledge that can be used for development of professionals. "very professional must make deliberate efforts to ac)uire e%pertise in the principles and techni)ues. 2imilarly a manager must have devotion and involvement to ac)uire e%pertise in the science of management. -. !ormal Education , 5raining - &here are no. of institutes and universities to impart education ' training for a profession. *o one can practice a profession without going through a prescribed course. Many institutes of management have been set up for imparting education and training. $or e%ample, a 5A cannot audit the A854s unless he has ac)uired a degree or diploma for the same but no minimum )ualifications and a course of study has been prescribed for managers by law. $or e%ample, M(A may be preferred but not necessary. .. -ocial #)ligations - >rofession is a source of livelihood but professionals are primarily motivated by the desire to serve the society. &heir actions are influenced by social norms and values. 2imilarly a manager is responsible not only to its owners but also to the society and therefore he is e%pected to provide )uality goods at reasonable prices to the society. 0. (ode of (onduct - 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. &he AIMA has prescribed a code of conduct for managers but it has no right to take legal action against any manager who violates it. 3. 'epresentative Association - $or the regulation of profession, e%istance of a representative body is a must. $or e%ample, an institute of 5harted 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.

$rom above discussion, it is )uite clear that management fulfills several essentials of a profession, even then it is not a full fledged profession because# a. It does not restrict the entry in managerial ,obs for account of one standard or other. b. *o minimum )ualifications have been prescribed for managers. c. *o management association has the authority to grant a certificate of practice to various managers. d. All managers are supposed to abide by the code formulated by AIMA, e. 5ompetent education and training facilities do not e%ist. f. Managers are responsible to many groups such as shareholders, employees and society. A regulatory code may curtail their freedom. g. Managers are known by their performance and not mere degrees. h. &he ultimate goal of business is to ma%imize profit and not social welfare. &hat is why /aymes has rightly remarked, &he slogan for management is becoming - 4/e who serves best, also profits most4.

4evels of Management
&he term 4evels of Management4 refers to a line of demarcation between various managerial positions in an organization. &he number of levels in management increases when the size of the business and work force increases and vice versa. &he level of management determines a chain of command, the amount of authority ' status en,oyed by any managerial position. &he levels of management can be classified in three broad categories# 9. Top level / Administrative level :. Middle level / Exec tory ;. !ow level / S pervisory / "perative / #irst$line managers

Managers at all these levels perform different functions. &he role of managers at all the three levels is discussed below#

!E%E!S "# MA&AGEME&T 1. Top Level of Management

It consists of board of directors, chief e%ecutive or managing director. &he top management is the ultimate source of authority and it manages goals and policies for an enterprise. It devotes more time on planning and coordinating functions. &he role of the top management can be summarized as follows a. !op management lays down the ob*ectives and broad policies of the enterprise. b. It issues necessary instructions for preparation of department budgets, procedures, schedules etc. c. It prepares strategic plans policies for the enterprise.

d. It appoints the e,ecutive for middle level i.e. departmental managers. e. It controls f. coordinates the activities of all the departments.

It is also responsible for maintaining a contact with the outside world.

g. It provides guidance and direction. h. !he top management is also responsible towards the shareholders for the performance of the enterprise. 2. Middle Level of Management

&he branch managers and departmental managers constitute middle level. &hey are responsible to the top management for the functioning of their department. &hey devote more time to organizational and directional functions. In small organization, there is only one layer of middle level of management but in big enterprises, there may be senior and ,unior middle level management. &heir role can be emphasized as -

a. !hey e,ecute the plans of the organi)ation in accordance with the policies and directives of the top management. b. !hey ma+e plans for the sub.units of the organi)ation. c. !hey participate in employment training of lower level management.

d. !hey interpret and e,plain policies from top level management to lower level. e. !hey are responsible for coordinating the activities within the division or department. f. It also sends important reports and other important data to top level management.

g. !hey evaluate performance of *unior managers. h. !hey are also responsible for inspiring lower level managers towards better performance. 3. Lower Level of Management

=ower level is also known as supervisory 8 operative level of management. It consists of supervisors, foreman, section officers, superintendent etc. According to R.C. Davis, 2upervisory management refers to those e%ecutives whose work has to be largely with personal oversight and direction of operative employees . In other words, they are concerned with direction and controlling function of management. &heir activities include a. Assigning of *obs and tas+s to various wor+ers. b. !hey guide and instruct wor+ers for day to day activities. c. !hey are responsible for the -uality as well as -uantity of production. d. !hey are also entrusted with the responsibility of maintaining good relation in the organi)ation. e. !hey communicate wor+ers problems, suggestions, and recommendatory appeals etc to the higher level and higher level goals and ob*ectives to the wor+ers. f. !hey help to solve the grievances of the wor+ers. guide the sub.ordinates.

g. !hey supervise

h. !hey are responsible for providing training to the wor+ers. i. *. !hey arrange necessary materials, machines, tools etc for getting the things done. !hey prepare periodical reports about the performance of the wor+ers.

+. !hey ensure discipline in the enterprise. l. !hey motivate wor+ers.

m. !hey are the image builders of the enterprise because they are in direct contact with the wor+ers.

-cientific Management )y 5aylor

$redrick 1inslow &aylor 6 March -E, +F3G - March -+, +H+37 commonly known as 4$ather of 2cientific Management4 started his career as an operator and rose to the position of chief engineer. /e conducted various e%periments during this process which forms the basis of scientific management. It implies application of scientific principles for studying ' identifying management problems. According to &aylor, 2cientific Management is an art of knowing e%actly what you want your men to do and seeing that they do it in the best and cheapest way . In &aylors view, if a work is analyzed scientifically it will be possible to find one best way to do it. /ence scientific management is a thoughtful, organized, dual approach towards the ,ob of management against hit or miss or 9ule of &humb. According to Drucker, &he cost of scientific management is the organized study of work, the analysis of work into simplest element ' systematic management of worker4s performance of each element .

&rinciples of -cientific Management

1. 3evelopment of -cience for each part of men2s *o) 8replacement of rule of thum)9 &his principle suggests that work assigned to any employee should be observed, analyzed with respect to each and every element and part and time involved in it. &his means replacement of odd rule of thumb by the use of method of en)uiry, investigation, data collection, analysis and framing of rules. Bnder scientific management, decisions are made on the basis of facts and by the application of scientific decisions.

:. -cientific -election, 5raining , 3evelopment of ;or7ers &here should be scientifically designed procedure for the selection of workers. >hysical, mental ' other re)uirement should be specified for each and every ,ob. 1orkers should be selected ' trained to make them fit for the ,ob. &he management has to provide opportunities for development of workers having better capabilities. According to &aylor efforts should be made to develop each employee to his greatest level and efficiency ' prosperity.

<. (o-operation )etween Management , wor7ers or %armony not discord &aylor believed in co-operation and not individualism. It is only through co-operation that the goals of the enterprise can be achieved efficiently. &here should be no conflict between managers ' workers. &aylor believed that interest of employer ' employees should be fully harmonized so as to secure mutually understanding relations between them.

=. 3ivision of 'esponsi)ility &his principle determines the concrete nature of roles to be played by different level of managers ' workers. &he management should assume the responsibility of planning the work whereas workers should be concerned with e%ecution of task. &hus planning is to be separated from e%ecution.

3. Mental 'evolution &he workers and managers should have a complete change of outlook towards their mutual relation and work effort. It re)uires that management should create suitable working condition and solve all problems scientifically. 2imilarly workers should attend their ,obs with utmost attention, devotion and carefulness. &hey should not waste the resources of enterprise. /andsome remuneration should be provided to workers to boost up their moral. It will create a sense of belongingness among worker. &hey will be disciplined, loyal and sincere in fulfilling the task assigned to them. &here will be more production and economical growth at a faster rate.

G. Ma+imum &rosperity for Employer , Employees &he aim of scientific management is to see ma%imum prosperity for employer and employees. It is important only when there is opportunity for each worker to attain his highest efficiency. Ma%imum output ' optimum utilization of resources will bring higher profits for the employer ' better wages for the workers.

&here should be ma%imum output in place of restricted output. (oth managers ' workers should be paid handsomely.

5echni0ues of -cientific Management

1. Time Study a. It is a techni-ue which enables the manager to ascertain standard time ta+en for performing a specified *ob. b. &very *ob or every part of it is studied in detail. c. !his techni-ue is based on the study of an average wor+er having reasonable s+ill and ability. d. Average wor+er is selected and assigned the *ob and then with the help of a stop watch, time is ascertained for performing that particular *ob. e. !aylor maintained that (air day3s wor+ should be determined through observations, e,periment and analysis by +eeping in view an average wor+er. #tandard !ime ? /or+ing 'ours @ (air Day3s /or+ 2. Motion Study a. In this study, movement of body and limbs re-uired to perform a *ob are closely observed. b. In other words, it refers to the study of movement of an operator on machine involved in a particular tas+. c. !he purpose of motion study is to eliminate useless motions and determine the bet way of doing the *ob. d. 4y underta+ing motion study an attempt is made to +now whether some elements of a *ob can be eliminated combined or their se-uence can be changed to achieve necessary rhythm. e. $otion study increases the efficiency and productivity of wor+ers by cutting down all wasteful motions. 3. Functional Foremanship a. !aylor advocated functional foremanship for achieving ultimate specification. b. !his techni-ue was developed to improve the -uality of wor+ as single supervisor may not be an e,pert in all the aspects of the wor+. c. !herefore wor+ers are to be supervised by specialist foreman. d. !he scheme of functional foremanship is an e,tension of principle pf speciali)ation at the supervisory level. e. !aylor advocated appointment of A foramen, < at the planning level implementation level. other < at

f.

!he names

function of these specialist foremen are8 .

Instruction card cler+ concerned with tagging down of instructions according to which wor+ers are re-uired to perform their *ob !ime cost cler+ is concerned with setting a time table for doing a *ob specifying the material and labor cost involved in it. Route cler+ determines the route through which raw materials has to be passed. #hop Disciplinarians are concerned with ma+ing rules and regulations to ensure discipline in the organi)ation. 7ang boss ma+es the arrangement of wor+ers, machines, tools, wor+ers etc. #peed boss concerned with maintaining the speed and to remove delays in the production process. Repair boss concerned with maintenance of machine, tools and e-uipments. Inspector is concerned with maintaining the -uality of product.

4. Standardi ation a. It implies the physical attitude of products should be such that it meets the re-uirements needs of customers. b. !aylor advocated that tools e-uipments as well as wor+ing conditions should be standardi)ed to achieve standard output from wor+ers. c. #tandardi)ation is a means of achieving economics of production. d. It seems to ensure .

!he line of product is restricted to predetermined type, form, design, si)e, weight, -uality. &tc !here is manufacture of identical parts and components. Buality standards have been maintained.

#tandard of performance are established for wor+ers at all levels.

!. "ifferential #iece $age #lan a. !his tech of wage payment is based on efficiency of wor+er. b. !he efficient wor+ers are paid more wages than inefficient one. c. 0n the other hand, those wor+ers who produce less than standard no. of pieces are paid wages at lower rate than prevailing rate i.e. wor+er is penali)ed for his inefficiency.

d. !his system is a source of incentive to wor+ers who improving their efficiency in order to get more wages. e. It also encourages inefficient wor+ers to improve their performance and achieve their standards. f. It leads to mass production which minimi)es cost and ma,imi)es profits.

%. &ther Techni'ues a. Carious other techni-ues have been developed to create ordeal relationship between management and wor+ers and also to create better understanding on part of wor+s. b. !hose includes use of instruction cards, strict rules charts etc, so as to increase efficiency of wor+ers. regulations, graphs, slides,

Ma+ ;e)er2s >ureaucracy

According to ;e)er, the need for )ureaucratization in the ancient empire state arises from the maintenance of armies, pu)lic finances and most importantly power and politics . In the modern times however, the comple%ity within the civilization is ever increasing and therefore the demands from the administration are also getting comple%. 1eber also emphasizes the importance of communication in running the bureaucracy of a 2tate and adds that they act as pacemakers and are the prere)uisites of the possibility of bureaucratic administration. &rained bureaucracy is superior to other kinds of administration in many ways like efficiency, accuracy or precision, unity, discretion, continuation, cost and reducing overall friction in the government functioning. 1eber went on to characterize a bureaucratic state by certain behavioral and structural features like#

:ivision of =abor /ierarchy 9ules and 9ationality Impersonality 9ules !rientation impartiality

5he %uman 'elations 5heory?%awthorne E+periments

&he /uman 9elations &heory of organization came in to e%istence in +H.Es as a reaction to the classical approach to organizational analysis. &his is because the classical theorists neglected the human factor in the organization. &he 5lassical theorists took a mechanical view of organization and underemphasized the socio psychological aspects of individual4s behavior in organization. It

is this critical failure of the classical theory that gave birth to the human relations approach. /uman relations theory is also known by various names like /umanistic &heory, *eoclassical &heory, etc. "lton Mayo, an American 2ociologist is the founder of the /uman 9elations &heory. &he other writers who contributed to the growth of this theory are 1illiam :ickson, *orth 1hitehead, 1. =loyd, and =. <. /enderson, among many others. &he /awthorne "%periment 6+H-0-+H.-7 conducted in the 1estern "lectric 5ompany at /awthorne near 5hicago by the /arvard (usiness 2chool under the leadership of "lton Mayo formed the basis for the rise of the /uman 9elations &heory of !rganization. !eatures /uman 9elations &heory has three elements or features. &hey are, the Individual, the Informal !rganization, and >articipative Management.

5he Individual# &he &heory recognizes the importance of emotions and perceptions of individuals. It holds the view that the level of workers4 production and organizational output is determined by the human relations at work and not so much by the physical and economic conditions of work. Informal #rganizations# &he /uman 9elations &heory emphasizes the informal organizations. According to /icks and ;ullet, &he informal shadow organization that e%ists within the structure of the formal organization is emphasized. Attention is focused on the social aspects of man whose overriding need is seen as a desire to belong, to be accepted by and stand well in his work group. &articipative Management# /uman 9elations &heory advocates the style of participative management. In other words, the manager should consult the work groups and their informal leaders before introducing a change of programme. &his participative management is meritorious because it permits the workers to influence the decisions that affect them, develops a sense of participation in the group, makes the working environment more pleasant, prevents the alienation of workers from the management, facilitates the acceptance of organizational goals by the workers, and above all, results in higher productivity. $inally, Mar%ists say that Mayoism is a new techni)ue to e%ploit workers as it has deemphasized the economic factors in an organization.

:espite these limitations, it needs to be taken in to account that the /uman 9elations &heory not only brought about a revolution in organizational analysis but also contributed significantly to the history of administrative thought as well. "ven today, organizations stress on interpersonal relations as tools of improving the productivity of workers in organizations.