MANAGEMENT SCIENCE Explanation: Management principles are not fixed;
they evolve and adapt as the organization’s
MID-TERM
environment changes.
MODULE 1 Relative not absolute principles
INTRODUCTION TO MANAGEMENT
Management principles are relative not
Definition of management absolute and
Management is defined as the creation and they should be applied according to the need of
maintenance environment in an enterprise the organization.
where individuals working together in groups, Each organization may be different from
others.
can perform efficiently and effectively towards
the attainment of company's objectives The difference may exist because of time, place,
(Koontzand O'Donell). socio-cultural factors, etc.
Explanation: Management is essentially about Explanation: Management principles are not one-
setting up and maintaining an environment where size-fits-all. They must be tailored to fit each
teamwork leads to efficient and effective achievement organization’s unique context.
of organizational goals.
Is management an art or science?
Nature of Management
Management is considered as art and science.
Multidisciplinary
The art of managing begins where science of
This implies that it draws ideas and concepts managing stops to make management
from various disciplines such as complete.
psychology, sociology, anthropology, Explanation: Management blends both art
economics, ecology, statistics, operations (creativity, personal skill) and science (systematic
research, etc. methods, principles) to be effective.
Management integrates the ideas and concepts
taken from these disciplines and How management is an art
present newer concepts which can be put into To manage effectively, one must have not only
practice for managing the organization. the necessary abilities to lead
Explanation: Management is interdisciplinary—it but also a set of critical skills acquired through
combines knowledge from fields like psychology,
time, experience and practice.
economics, and statistics to create practical
strategies for running organizations. The art of managing is a personal creative
attribute of the manager
Dynamic nature of principle
which is more often than not enriched by
Based on integration and supported by
education, training and experience.
practical evidences, management has formed
certain principles. Explanation: Management as an art involves
personal creativity, skill, and practical experience,
These principles are flexible in nature and
much like how an artist hones their craft.
change with the changes in the environment in
The art of managing involves the conception of
which an organization exists.
a vision of an orderly whole created from
chaotic parts and
the communication and achievement of this Management takes steps for the attainment of
vision. the goal.
Managing is the "art of arts" because it Explanation: Management is always directed
organizes and uses human talent. toward achieving specific objectives.
Explanation: A manager must envision order from
chaos and inspire others to achieve that vision,
How management is a science
making management a highly creative and human-
centered art. Management process follows a systematic
Elements of art in management pattern of
Practical knowledge • gathering data and facts,
• analyzing them and
Art requires practical knowledge because • making a decision based on analysis.
learning of theory is not sufficient.
Explanation: Management uses a structured,
Art applies theory to the field and teaches the evidence-based approach similar to the scientific
practical application of theoretical principles. method.
Example: A person may have a degree that says Management follows a systematic method to
he knows what a manager does but it doesn't find a possible solution for a problem.
know how to apply management knowledge in
real-life situations he will not be regarded as • Managers who attempt to manage
manager. without management science have to
trust their intuition or luck rather than
Explanation: Real management skill comes from their expertise or skill.
applying theory in practice, not just knowing it.
Explanation: Scientific methods in management lead
• Personal skill to more reliable and expert decision-making.
A manager will not depend on his theoretical Elements of science in managing
knowledge or solution alone.
• Concepts
He or she must have some qualities that make
him or her unique. The scientific approach requires a clear
"concepts" of mental images of anything
Explanation: Effective managers bring their own formed by generalization from particulars.
personal touch and unique abilities to their role.
Managing has concepts to deal with situations.
Creativity
Explanation: Management uses defined concepts to
Management is all about finding a new way to understand and handle real-world situations.
be well different from others.
• Methods and principles
Explanation: Creativity in management means
innovating and finding better, unique solutions. "Scientific method" involves the determination
of facts through observation.
Perfection through practice
This leads to the development of "principles"
Managers become more expert as he/she which have value in predicting what will
spends more time in management thought. happen in similar circumstances.
Explanation: Like any art, management improves Similarly, management requires observation
with continuous practice and experience. and sets standards or principles according to it.
Goal-oriented Explanation: Management, like science, relies on
observation to form principles that guide future
actions.
• Theories The art of managing begins where the science
of managing stops.
A 'theory" is a systematic grouping of
interdependent concepts and principles that Since the science of managing is imperfect,
give a framework to or ties together which is a
the manager must turn to the artistic
significant area of knowledge.
managerial ability to perform a job
Management studies over the years developed satisfactorily.
many proved theories for making management
Explanation: When scientific methods fall short, a
more realistic or scientific.
manager’s artistic skill—like intuition and
Explanation: Management theories provide creativity—takes over to ensure success.
structured frameworks that explain and predict
organizational behavior.
Characteristics of Management
• Organized knowledge
• Setting goals for organizations
Science is organized knowledge.
Goals differ from organization to organization
Management at the present day is a distinct
in business
field of organized knowledge.
The basic economic goal is to earn maximum
Concepts, methods, principles, theories, etc. are
profit
now the core of management.
while in service organization like hospital and
Explanation: Management has evolved into a well-
educational institution for the basic goal is to
organized body of knowledge with its own core
concepts and methods. provide better service and better education.
Explanation: Management sets specific goals, which
• Practice
vary by organization—profit for businesses, service
The theories of managing are the results of quality for hospitals and schools.
practice, and
• Awareness of opportunities and resources
the role of such theories is to provide a
Management has awareness of opportunities
systematic grouping of interdependent
and resources like
concepts and
men, materials, money which assembles and
principles that furnish a framework to or ties
integrates by management.
together significant pertinent management
knowledge. Explanation: Managers identify and combine key
resources—people, materials, and finances—to seize
Explanation: Management theories are developed
opportunities.
from real-world practice and in turn help structure
future management knowledge. • Management is transformation process
Management is a transformation process
consisting of:
Management is a science as well as art
▪ Planning
To be successful, managers have to know and
do things effectively and efficiently. It involves defining goals, establishing
strategies for achieving those goals, and
This requires a unique combination of both
developing plans to integrate and coordinate
science and art of managing in them.
activities.
Explanation: Effective management requires both
▪ Organizing
the systematic knowledge of science and the creative
skill of art.
It involves arranging and structuring work to The ever-changing social environment directly
accomplish the organization's goals. and indirectly effects the group activity
▪ Staffing thus, changing environments provide a
challenge to management.
It involves on getting the right people into the
right jobs. • Efficient management cannot remain
static
▪ Directing
it must adopt itself to changing conditions.
It involves guiding, motivating and supervising
employees so they work effectively toward Explanation: Management must continuously adapt
organizational goals. to changes in the external environment to stay
effective.
▪ Controlling
• Management is decision making
It involves monitoring, comparing and
correcting work performance Managers are decision makers
Explanation: Management transforms inputs into Example: Marketing managers decides about
outputs through key functions: planning, how to market, when to market, where to
organizing, staffing, directing, and controlling. market how to collect funds for organization.
• Management is universal Explanation: Decision-making is a core part of
management, covering everything from strategy to
The principles and techniques of management
daily operations.
are universally applicable to all group activities
performed at any level of organization. • Management is a profession
Explanation: Management principles can be applied Management is not only a science but also an
in any organization, anywhere, at any level. art.
• System of authority Art means managers have to handle the person
and things tactfully.
System of authority means a hierarchy of
command and control. Science means achieving objectives through
procedures.
Managers at different levels possess varying
degrees of authority. Explanation: Management is a professional field
that combines the art of interpersonal skill with the
Explanation: Management operates through a clear
science of structured processes.
chain of command, with authority distributed across
levels. • Importance of management
• Coordination "No ideology, no ism, or political the greater
output with less efforts from a given complex
Various human beings organized in formal
of human and materials resource only sound
groups to achieve the common organizational
management and
objectives,
it is on such greater output that a higher
so various departments in the organization
standard of life, more leisure, more amenities
must work in harmony with one another.
for all.
Explanation: Management ensures all parts of the
Explanation: Good management is essential for
organization work together smoothly toward shared
maximizing productivity and improving quality of
goals.
life, regardless of political or ideological systems.
• Management is dynamic
• Effective utilization of resources
Management tries to make effective utilization Example: In a business organization, there are
of various resources. various pressure groups such as shareholders,
employees, government etc.
The resources are scarce in nature and to meet
the demand of the society, • These interest groups have pressure on
an organization.
their contribution should be maximum for the
general interests of the society. Explanation: Management balances the demands of
different stakeholders like employees, shareholders,
Management not only decides in which and regulators.
particular alternative a particular resource be
used but • Stability in the society
also takes actions to utilize it in that particular Management provides stability in the society
alternative in the best way. by
Explanation: Management ensures scarce resources changing and modifying the resources in
are used optimally to benefit society as a whole. accordance with the changing environment of
the society.
• Development of resources
Management provides integration between
Management develops various resources.
traditions and new inventions and
Most of the researches for resource
safeguards society from the unfavorable impact
development are carried on in an organization
of these inventions so that continuity in social
way and
process is maintained.
management is involved in those activities.
Explanation: Management helps society adapt to
Explanation: Management plays a key role in change while maintaining stability, blending
researching and developing resources for future use. tradition with innovation.
• Incorporating innovations
Changes are occurring at a very fast rate in Levels of Management
both technology and social process and • Top management
structure.
o Board of directors
These changes need to be incorporated to keep
the organizations alive and efficient. o Chief executives
Therefore, they require high degree of o Functions of top management
specialization, high level of competence, and
Setting basic goals and objectives
complex technology.
Expanding or contracting activities
All these require efficient management so that
organizations work in the most efficient way. Establishing policies
Explanation: Management integrates new Monitoring performance
technologies and social changes to keep
organizations competitive and efficient. Designing/redesigning organization system
• Integrating various interest groups Shouldering financial responsibilities etc.
In the organized efforts, there are various Explanation: Top management sets the overall
interest groups and direction, policies, and major goals of the
organization.
they put pressure over other groups for
maximum share in the combined output. • Middle management
o General manager
o Production/operations
manager
o Marketing and sales manager
o Accounting and finance
manager
o Human resources manager
o Administrative manager
o Functions of middle management
Establishment of the organization
Selection of staff for lower levels of
management
Installing different departments
Designing operating policies and routines
Assigning duties to their subordinates
Explanation: Middle managers implement top
management’s plans by organizing departments,
hiring staff, and setting operational procedures.
• Lower management
o Supervisor
o Section head
o Functions of lower management
Direct supervision of workers and their work
Developing and improving work methods
operations
Inspection function
Imparting instruction to workers
Give finishing touch to the plans and policies of
top management
Act as link between top management and
operating force
Communicate the feelings of workers to the top
management.
Explanation: Lower management oversees daily
operations, supervises employees, and serves as a
communication bridge between workers and higher
management.