MANAGEMENT: SCIENCE, THEORY, AND PRACTICE

Management: Management is the process of designing & maintaining an environment in

which individuals, working together in groups to efficiently accomplish selected aims.

Organization: We define an organization as a group of people working together to create

a surplus. In business organizations this surplus is profit. In non profit organizations such
as charitable organization, it may be satisfaction of needs.

Functions of Management: Many scholars & managers have done different types of
analysis and found there are five managerial functions. They are as follows-

• Planning.
• Organizing.
• Stuffing.
• Leading &
• Controlling.

The goals of all managers and organizations:

The aim or goal of all mangers should be to create a surplus by establishing an
environment in which people can accomplish group goals with the least amount of time,
money, material & personal dissatisfaction. Which means managerial job is to achieve as
much as possible of a desired goal with available resources. Not only the business
organizations but also non profit charitable organizations managerial job is to accomplish
the desired goal with minimum resources in a suitable way.

Characteristics of excellent and most admired companies:

In normal sense profitability is the measure of company excellence. But there are some
other measures that identify the excellence of an organization. There are eight
characteristics of excellent organizations-

• Organizations were oriented toward action.

• Learned about the needs of their customers.
• Promoted managerial autonomy & entrepreneurship.
• Achieved productivity by playing close attention to the needs of their people.
• Organizations were driven by a company philosophy often based on the values of
their leaders.
• Organizations which focused on the business.
• Organizations which had a simple structure with a lean staff.
• Organizations which were centralized as well as decentralized depending on
appropriateness.
 ADAPTING THE CHANGES IN THE 21’ST CENTURY

To be successful in the present time companies have to take advantage of new

technologies especially the internet & globalization.

Information Technology: The world wide web has a huge impact on both organization
and individuals. Internet connects people & organization with global network. E-
commerce is increasingly used for transaction between individuals & companies. But
especially for the business purpose the user is differ country to country. American &
European countries has highest access rate than other countries. But now a day a new
trend comes in the track that is mobile or wireless commerce. With this people can
communicate without computer, they can talk, send message, picture & also video.

Globalization: The second major trend is globalization. Most major organization has an
international presence. The are doing well under the WTO. Companies doing much more
profit, not only the American companies but also the other countries are benefiting from
the globalization.

Productivity: Successful companies create surplus through productive operations.

Productivity is the Input output ratio within the a time period with due consideration of
quality. We can express as follows-

Out puts
Productivity = --------------- (Within a time period, quality considered)
Inputs
Effectiveness: Effectiveness is the achievement of objectives.

Efficiency: Efficiency is the achievement of the ends with the least amount of resources.

THE HISTORY OF MANAGEMENT

Fredric Taylor

Fredric Taylor is the father of the scientific management. He was an engineer of his
personal life. During his working life he see a lot of possibilities for improving the
quality of management. Taylor published a book named as “Principles of scientific
Management” in the year 1911. The fundamental principles of his book is as below-

• Replacing the rules of thumb with science.

• Obtaining harmony rather than discord, in group action.
• Achieving cooperation of human being, rather than chaotic individualism.
• Work for maximum output rather than restricted output.
• Developing all workers to the fullest extent possible for their own and their
company’s highest prosperity.
Henry Fayol: Henry Fayol is the father of Modern Management theory. He was a
French Industrialist. He recognized a wide spread need for principles and management
teachings. He first proposed that there are five primary function of Management-
• Planning.
• Organizing.
• Commanding.
• Coordinating. &
• Controlling.
He developed 14 principles of management as below-

01. Specialization of labor. Specializing encourages continuous improvement in skills

and the development of improvements in methods.
02. Authority. The right to give orders and the power to exact obedience.
03. Discipline. No relaxing, bending of rules. The workers should be obedient and
respectful of the organization.
04. Unity of command. Each employee has one and only one boss.
05. Unity of direction. A single mind generates a single plan and all play their part in
that plan.
06. Subordination of Individual Interests. When at work, only work things should be
pursued or thought about.
07. Remuneration. Employees receive fair payment for services, not what the company
can get away with.
08. Centralization. Consolidation of management functions. Decisions are made from
the top.
09. Chain of Superiors (line of authority). Formal chain of command running from top
to bottom of the organization, like military
10. Order. All materials and personnel have a prescribed place, and they must remain
there.
11. Equity. Equality of treatment. Managers should judge equally with each & every
body under him.
12. Personnel Tenure. Limited turnover of personnel. Lifetime employment for good
workers.
13. Initiative. Thinking out a plan and do what it takes to make it happen.
14. Esprit de corps. Harmony & unity among personnel. It's a great source of strength in
the organization. Fayol stated that for promoting esprit de corps, the principle of unity of
command should be observed and the dangers of divide and rule and the abuse of written
communication should be avoided.
 FUNCTION OF MANAGEMENT

1. Planning: Planning is the process of thinking about the activities required to

create a desired future on some scale. Planning is selecting missions & objectives
as well as actions to achieve them, which requires decision making. That means
choosing future courses of action from among alternatives.
2. Organizing: Organizing is the part of managing which is involves establishing an
intentional structure of roles for people to fill in an organization. It is intentional
in the sense of making sure that all the tasks necessary to accomplish goals are
assigned and it is hopped, assigned to people who can do those best.
3. Staffing: Staffing involves filling, and keeping filled, the positions in the
organization structure. This is done by identifying work force requirements,
inventorying the people available, and recruiting, selecting, placing, promoting,
apprising, planning the carriers, compensating & training.
4. Leading: Leading is influencing people so that they will contribute to
organizational & group goals.
5. Controlling: Controlling is measuring & correcting individual & organizational
performance to ensure that events conform to plans.
 ESSENTIALS OF PLANNING & MANAGING BY OBJECTIVES

Planning is the process of thinking about the activities required to create a desired future
on some scale. Planning is selecting missions & objectives as well as actions to achieve
them, which requires decision making. That means choosing future courses of action
from among alternatives.
Types of plan:
Plans can be classified as (1) Mission or purpose, (2) Objective or goals, (3) Strategies,
(4) Policies, (5) Procedure, (6) Rules, (7) Programs, (8) Budget.

(1) Mission or purpose: The mission or purpose identifies the basic purpose or function
or task of an enterprise or agency. Every organized operation has, or should have mission
or purpose if it is to be meaningful. As for example the purpose of a university is
teaching, research & providing services to the community.

(2) Objectives or goals: Objective or goals are the ends toward which activity is aimed.
For an example a business organization goal is to earn profit.

(3) Strategies: Strategy is the determination of basic long term objectives of an

enterprise & the adoption of courses of action and allocation of resources necessary to
achieve these goals.

(4) Policies: Policies are general statement or understanding that guide or channel
thinking in decision making. Policies define an area within which a decision is to be
made & ensure that the decision will be consistent with & contribute to an objective.
Polices help decide issues before they become problem. As for example a construction
farm only takes BUET graduates.

(5) Procedure: Procedure are plans that establish a required method handling future
activities. Procedures are chronological sequence of required action & guides to action.

[ A few example illustrate the relation ship between procedure & policies. Company
policy may grant vacation. Procedure established to implement this policy will provide
scheduling vacations to avoid disruption of work]

(6) Rules: Rules spell out specific required actions or no actions, allowing no discretion.
The rules are often the simplest type of plan. As for example for a production unit on the
floor “no smoking” is a rule.

(7) Programs: Programs are a complex of goals, policies, procedures, rules, task
assignments, steps to be taken, resources to be employed and other elements necessary to
carry out a given course of action, they are ordinarily supported by budget.

(8) Budgets: A budget is a statement of expected results expressed in numerical terms. It

may be called a “quantified” plan. The budget is the fundamental planning instrument for
an organization.
The steps in planning:

The step in planning is as below-

• Being aware of opportunities: All managers should take a preliminary look at

possible future opportunities and see them clearly & completely. They should
know where the company stands in the light of its strengths & weakness. They
need to measure the opportunities in light of market, competition, what customer
want, strengths & weakness etc.
• Establishing objectives: The second step is to establish objective. This is to be
done for the long term as well as for the short message. Objectives specify the
expected results and indicates the end points what to b one.
• Development premises: Premises are the assumption about the environment in
which the plan is to be carried out. It is important that all managers involved in
planning to agree on the premises.
• Determining alternative courses: The fourth step in planning is to search for &
examine alternative course of action especially those are not immediately
apparent.
• Evaluating the alternatives: After seeking out alternative courses and examining
their strong & weak points. The next step is to evaluate the alternatives by
weighing them in light of premises & goals.
• Selecting course: This is the point at which the plan is adapted the real point o
decision making. Occasionally an analysis & evaluation of alternatives courses
will disclose that two or more are available.
• Formulating derivative plans: When a decision is made then need to made the
supporting plans such as buying, equipments, materials, hair & train worker,
developing new product etc.
• Quantifying plans by budgeting: After the decision is made the final step is to
giving them meaning. We need to convert the plan in to budget. We need to
develop budget such as determining price & sales, operating expenses necessary
for plans, expenditure for capital equipment.
 MBO (MANAGEMENT BY OBJECTIVE)

Now a days MBO is practiced widely around the globe. It is a comprehensive

managerial system that puts together many key managerial activities in a systematic
manner that is consciously directed toward the effective & efficient achievement of
organizational & individual objectives.
Setting preliminary objectives at the top: Giving appropriate planning premises, the
first step to setting objectives is for the top manager to determine what he or she
recognizes to be the purpose or mission & the more important goals of the enterprise for a
given period. The goals set by the superiors are preliminary, based on an analysis &
judgment as to what can & should be accomplished by the organization within a certain
period. This requires taking into account the company’s strengths & weakness in light of
available opportunities and threats.

Clarifying Organizational roles: It is necessary to clarify the organizational role in

establishing plan. Each goals & sub goals should be one particular person’s clear
responsibility.

Setting subordinates objectives: After making sure that subordinates mangers have been
informed of about the objectives, strategies and planning premises, the superior can then
proceed to work with subordinates to setting their objectives. Superior then asks the
subordinates that what goals they can accomplish, in what time period and with what
resources. Superior should ask different questions to solve problem that subordinates
faces during establishing the plan. They should identify if there is any kind of change is
required. Superior should set the goals in such a manner so that company can get the
maximum output from his resources. Superior should also be careful not to set goals that
are impossible to achieve.

Recycling Objectives: Objectives are difficult to set whether it is starts from the top
level or from bottom. A recycling is always required to set the objective perfectly. Top
management may have some idea of what their subordinate’s objective should be – but
when subordinate’s contribution comes into focus it may change completely. So when the
understanding of top & lower managers doesn’t matches then it is necessary to set
everything again.
 DECISION MAKING

Decision making: Decision making is defined as the selection of a course of action from
among alternatives; it is the core of planning.

Rationality in decision making: When a person is thinking or deciding rationally to set

a goal or making a decision then the decision is becoming rational. To make an effective
decision it is necessary to think rationally.

Development of alternatives & limiting factors: After setting the goals and agree on
clearing the planning premises the first step in decision making is to develop alternatives.
There are almost always alternatives to any course of action. If there is only one way of
doing things, that way is probably wrong. The ability of developing alternatives is as
important as selecting one from them. On the other hand ingenuity, research,
commonsense will often unearth so many choices that none of them can be adequately
evaluated. The managers need help in this situation, and this help as well as assistance in
choosing the best alternatives they should consider the limiting factors. The limiting
factors are something that stands in a way of accomplishing a desired objective.
Recognizing the limiting factors in a given situation makes it possible to narrow the
search for alternatives to those that will overcome the limiting factor.

Evaluation of alternatives: Once appropriate alternatives have been found the next step
in planning is to evaluate them and select the one that will best contribute to goal. This is
the main point of decision making.

Quantitative & qualitative factor: In comparing alternative plans for achieving an

objective, we need to think exclusively of quantitative factors. As for example times,
various fixed & operating coasts are quantitative factor. Also we need to evaluate the
qualitative factors these are very difficult to measure numerically. As for example the
relation ship of labor, the risk of technological change, and the international political
climate.

Managerial analysis: To evaluate the alternatives managerial analysis is necessary.

Managerial analysis compares the additional cost arising from increasing output.

Cost effective analysis: An improvement on traditional managerial analysis is cost

effectiveness. This is means the analysis seeks the best ratio of benefit & cost.

SELECTING AN ALTERNAIVE: THREE APPROACH-

When selecting from among alternatives, managers can use three basic approaches
• Experience.
• Experimentation. &
• Research & analysis.
• Experience- Past experience plays a vital role in decision making. Experienced
managers usually use their past experience when taking a decision. The things
they have done successfully & what mistakes they have done to furnish a job
these experiences are reliable guides for future.

• Experimentation- To decide one course of action among the alternatives it is

obvious to try or experiment one of them & see what happens. The
experimentation is often costly. And this is the only way a manager can make sure
some plans are right. There are some decisions which are not possible to take
without an experiment. As for example an airplane manufacturer can’t take
decision to produce an airplane without doing an experiment over it.

• Research & analysis- One of the most effective way for selecting from
alternatives when major decisions are involved is research & analysis. This
approach means solving the problem by first understanding it. It thus involves a
search for relationship among the more critical variables, constraints and premises
that bear upon the goal sought. Research & analysis is paper work approach of
decision making. In this process it is necessary to break the problem in to its
component parts and studying the various quantitative & qualitative factors. Study
& analysis is far cheaper than experimentation.
 ORGANIZING

Organizing- The basic managerial function of designing & maintaining the systems &
roles of an organization is called organizing. Organizing is the identification and
classification of required activities which is necessary to attain objectives.

Organization- There is different ideas of organization based on their working

background. But for most practicing mangers organization means a formulized
intentional structure of roles or positions.

What is formal & informal organization- Many writers of management distinguish

between formal & informal organization. But in day to day life we have found both type
in an organization.

Formal organization- Formal organization means the intentional structure of roles in

formally organized enterprise. If a manager is to organize well, the structure must furnish
an environment in which individual perform effectively to group goals. A formal
organization must be flexible. There should be room for carefulness.

Informal organization- Informal organization is a network of interpersonal relationship

that arises when people associate with each other.

The below figure is explaining the structure –

PRESIDENT

VICE PRESIDENT

DIVISION
MANAGER

DEPERTMENT
MANAGER

INFORMAL
ORGANIZATION INFORMAL
“MORNING COFEE ORGANIZATION
REGULR” GROUP ”SAME HOME DIST”
 Organizational level & the span of management- There are different level in an
organization. In other words organizational level exists because there is a limit to the
persons a manager can supervise effectively. This limit varies depending on personal
capacity & situation. The span of management & organizational level is shown
below-

Wide & narrow span of management- A wide span management is associated with
few organizational levels & on the other hand a narrow span associated with many
levels.

Organization with narrow span of management

Advantages-
• There is a close supervision in between different level.
• There is a good control over subordinates.
• Fast communication between subordinates & superiors.

Disadvantages-
• Superiors tend to get too much involved in subordinates work.
• Many level of management.
• High cost due to many levels.
• Excessive distance between lowest & top level.
 Organization with wide span of management
Advantages-
• Superiors are forced to delegate.
• Clear policies are must be made.
• Subordinates must be carefully selected.
Disadvantages-
• Tendency of overload superiors to become decision bottleneck.
• Danger of superior’s loss of control.
• Require exceptional quality of management.

THE FACTORS DETERMINES AN EFFECTIVE SPAN-

The number of subordinates a manager can effectively manage depends on the impact of
some factors. The factors are given below-

1. Training of subordinates-

2. Clarity of delegation of authority-

3. Clarity of plans-

4. Use of objective standards-

5. Rate of turnover-
 6. Communication technique-

7. Amount of personal communication required to accomplish a job.

8. Variation of organizational level- The span depends on the organization level. An

organization with more level is wide span & with less level is narrow span.

CHAPTER 9
LINE/STUFF AUTHORITY, EMPOWERMENT & DECENTRELIZATION

Authority: Authority is the right in a position to exercise of good judgment in making

decision affecting others.
Power: Power is the ability of individuals or groups to induce or influence the beliefs or
actions of other persons of groups.
Empowerment: Empowerment means that employees, managers, or teams at all levels in
the organization are given the power to make decision without asking their superiors for
permission. Actually the notion of empowerment is historically based on suggestion
scheme, job enrichment & worker participation.

Both delegation & empowerment are matter of degree. They also require that employees
& teams accept responsibility for their actions & tasks. This relationship can be
illustrated as below-

• Power should be equal to responsibility (P=R).

• If power is greater than responsibility (P>R), then this could result in autocratic
behavior of the superior who is not held accountable for his or her action.
• If responsibility is greater than power (R>P), then this could result in frustration
because the person has not the necessary power to carry out the task for which he
or she is responsible.
Empowerment is necessary because of the global competitiveness & the need to respond
fast to the demands & expectation of the customer. Empowerment of subordinates means
that superiors have to share the authority and power with subordinates. In now a day
when empowerment is often practicing all over the world an autocratic leadership may be
proved inappropriate. Effective management requires that empowerment be sincere based
on mutual trust accompanied by relevant information for the employees to carry out their
task.
 LINE STUFF CONCEPT & FUNCTIONAL AUTHORITY

Line authority gives a superior a line authority over a subordinate. It exists in all
organization. The scalar principal in organization is the clearer of the line of authority
from the ultimate management position in an organization in every subordinate position,
the clearer will be the responsibility for decision making and the more effective will be
organizational communication. This line could be smallest or large based on
organizational structure.

Line authority- The line authority is the relationship in which superior exercises direct
supervision over subordinates.

Stuff relationship- The nature of stuff relationship is advisory the function of people in
pure staff capacity is to investigate, research & give advise to line managers.

Functional authority- The right delegation to an individual or a department to control

specified process, practices, policies or other matters reality to activities undertaken by
process in other departments.

Decentralization- Decentralization is the tendency to disperse decision making authority

in an organization structure. It is fundamental aspect of delegation, to the extent that
authority that is delegated is decentralized. How much should authority concentrated in
or dispersed throughout the organization. There could be absolute centralization of
authority in one person that implies that there is no subordinate manger or not nay
structured organization. Some decentralization exists in all the organization. On the other
hand if there is a absolute decentralization, for if the mangers delegate all the authority,
their position will be eliminated.

Delegation of authority- Authority is delegated when a superior gives subordinate

direction to make decision. Clearly superiors cannot delegate the authority the don’t have,
whether they are board members, presidents, vice presidents or supervisors.

The process of delegation involves (1) Determining the results expected from the
position. (2) Assigning the tasks to the position. (3) Delegating authority for
accomplishing these tasks and (4) Holding the person in that position responsible for the
accomplishment for that task.
In practice it is impossible to split this process since expecting a person to accomplish
goals without giving him or her authority to achieve them is impractical. As delegating
the authority without knowing the end results to which it will be applied. Moreover
superiors responsibility cannot be delegated a boss must hold subordinates responsible
for completing their assignment.
PERSONAL ATTITUDE TOWARDS DELEGATION-

Charting an organization and controlling managerial goals & duties helps to make
delegation decisions. There are some personal attitudes necessary for proper delegation
they are as below –

Receptiveness (accessibility)- Managers should have willingness to give other peoples a

chance. A subordinate decision is not likely to be exactly the one a superior would have
made. But the superior should help to come the subordinate by helping in their decision
making.

Willingness to let go- A manager who delegates the authority must be willing to release
the right to make decision to subordinates.

Willingness to allow mistakes by subordinates- Although no responsible manager will

allow subordinates mistake. But every one makes mistake this is natural. So managers
must accept some of these mistakes of subordinates & their cost must be considered as an
investment of personal investment.

Willingness to trust subordinates- In the time of dealing there may arise question in
superior’s mind that subordinates are not experienced enough to handle. In that case
superior should train subordinates. But there is no alternative but training the
subordinates.

Willingness to establish & use broad control- The superior should not delegate
authority unless they are willing to find means of getting feedback that is of assuring
them that authority is being used to support enterprise or departmental goals & plans.

OVERCOMING WEAK DELEGATION

Poor delegation is one of the reasons of managerial failures. To avoid poor delegation it is
necessary to understand the nature & principle of delegation. Below points will help us to
facilitate successful delegation.

• Define assignment and delegate sufficient authority to make possible the

accomplishment of goal assignment.
• It is necessary to understand that whom we should delegate the authority. We
should select the person in the light of the job to be done.
• In case of delegation to be successful there should be free flow of information
between superior & subordinates. Supporting subordinates with information will
help them in decision making.
• If controls are to enhance delegation they must be relatively broad and be
designed to show deviations from plans.
 • Reward effective delegation (allocation) and successful assumption of authority.
These rewards will be monetary it could be in a given position or by promotion to
a higher position.

ADVANTAGE & DISADVANTAGE OF DECENTRALIZATION

Advantages-
1. Relieves upper level management of some burden of decision making and forces
upper-level managers’ let-go.
2. Encourage decision making and assumption of authority & responsibility.
3. Gives managers more freedom and independence in decision making.
4. Promotes establishment and use of broad controls that may increase motivation.
5. Makes comparison of performance of different organizational units possible.
6. Facilitates setting up of profit centers.
7. Facilitates product diversification.
8. Promotes development of general managers.
9. Aids in adoption to fast changing environment.
Limitations-
1. Makes it more difficult to have uniform policy.
2. Increase complexity of coordination of decentralized organizational units.
3. May result in loss of some control by upper level managers.
4. May be limited by inadequate control technique.
5. May be constrained by inadequate planning & control system.
6. Can be limited by the lack of qualified managers.
7. Involves considerable expenses for training managers.
8. May be limited by external forces (National labor union, governmental control,
tax policies)
9. May not be favored by economies of scale of some operations.

STUFFING
CHAPTER 11

Stuffing- The managerial function stuffing defined as filling & keeping filled positions in
the organization structure. This is done by identifying work force requirements,
inventorying the people available, and recruiting, selecting, placing, promoting,
apprising, planning the career and developing both candidates & current job holders so
that they can accomplish their task effectively.

The system approach of human resource management- In fact enterprise plans become
the basis for organization plans. Which are necessary to achieve enterprise objective
below structure shows us how the managerial function relates to the total management
system-
 ENTERPRISE PLANS

ORGANIZATIO
N PLANS

NUMBER &
KIND OF
EXTARNAL
MANAGERS
SOURCES REQUIREMENT APPRISAL
REQUIRED
ANALYSIS OF CAREER LEADING &
SELECTION
PRESENT & STRATEGY CONTROLL
PLACEMENT ING
FUTURE NEEDS TRAINING &
PROMOTION
FOR DEVELOPME
SEPERATION
MANAGERRS NT
INTERNAL
MANAGER SOURCES
INVENTORY

Internal environment
Personal policies
Reward system

The present & projected organizational structure determines the number & kind of
manager required. These demands are compared with available talent through the
management inventory. On the basis of this analysis external & internal sources are
utilized in the process of recruitment selection, placement, promotion & separation. Other
essential aspects of staffing are appraisal, career strategy, training & developments of
managers. Stuffing effects leading & controlling. For instance well trained managers
create environment in which people working together in groups to achieve enterprise
objectives and at the same time personal goals.
 Human factors & motivation
Chapter 14

Motivation- Motivation is a general term which means satisfying the desires of the
people. In terms of Mangers motivation means satisfying subordinates desire in a desired
manner.

Motivation model-

There are some factors necessary to motivate the people –

Human Factors in Managing- Every organization has its own objectives. Employees
have also some objectives. Employee’s objective may differ from that of organization. In
that case manager’s job is to satisfy peoples by using the function of leading.

Multiplicity of roles- Individuals are not only the productive factors of an organization
but also he has several roles in the society. Individual has their political, charitable,
family role they play in the society so they need to treat like that.

No average person- People act in different roles in