Management Science

Introduction to management groups, can perform efficiently and

-When human being started group effectively towards the attainment
activities for the attainment of same of group goals - Koontz and
common objectives whenever a O'Donell.
group is formed and a group activity
NATURE OF MANAGEMENT
is organized to achieve certain
common objectives management is 1. Multidisciplinary: This implies that,
needed to direct, co-ordinate and although management has been
integrate the individual activities of developed as a separate discipline,
a group and secure teams work to it draws knowledge and concepts
accomplish organizational from various disciplines.
objectives. The objectives of all Management integrates the ideas
business are attained by utilizing and concepts taken from
the scare resources like men, psychology, sociology,
materials, machines, money etc. anthropology, economics, ecology,
-In process of management, a statistics, operations research, etc
manage uses human skills, material and present newer concepts which
resources and scientific methods to can be put into practice for
perform all the activities leading to managing the organization.
the achievement of goods
2. Dynamic nature of principle:
Definition Based on integration and supported
-"Management is knowing exactly by practical evidences,
what you want men to seeing that management has formed certain
they do it the best and cheapest principles. However, these
ways" principles are flexible in nature and
-Management is defined as the change with the changes in the
creation and maintenance environment in which an
environment in an enterprise where organization exists.
individuals working together in
3. Relative, not absolute principles: provide better service and better
Management principle are relative, education.
not absolute, and they should be
2. Awareness of opportunities and
applied according to the need of the
resources: Management have
organization. Each organization
awareness of opportunities and
may be different from others. The
resources like men, materials,
difference may exist because of
money which assembles and
time, place, socio-cultural factors,
integrates by management.
etc.
3. Management is transformation
4. Management Science or Art:
process: consists of planning,
There is a controversy whether
organizing, staffing, directing and
management is science or art.
controlling.
However, management is both a
science and art. 4. Management is universal: The
principles and techniques of
5. Management as profession:
management are universally
Management has been regarded as
applicable to all group activities
profession by many while many
performed at any level of
have suggested that it has not
organization.
achieved the status of a profession
5. System of authority: hierarchy of
CHARACTERISTICS OF
command and control. Managers at
MANAGEMENT
different levels possess varying
1. Setting goals for organizations: degrees of authority.
Goals differ from organization to
6. Coordination: various
organization in business, the basic
departments in the organization
economic goal is to earn maximum
must work in harmony with one
profit, while in service organization
another.
like hospital and educational
institution for the basic goal is to 7. Management is Dynamic: Efficient
management can not remain static
it must adopt it self to changing particular alternative in the best
conditions. way.

8. Management is decision making: 2. Development of resources: Most

The managers are decision makers of the researches for resource
the marketing managers decides development are carried on in an
about how to market, when to organization way and management
market, where to market how to is involved in those activities.
collect funds for organization.
3. To incorporate innovations: they
9. Management is a profession: need to be incorporated to keep the
Management is not only a science organizations alive and efficient.
but also an art. Art means Therefore, they require high degree
managers has to handle the person of specialization, high level of
and things tactfully. Science means competence, and complex
achieving objectives through technology.
procedures
4. Integrating various interest
IMPORTANCE OF MANAGEMENT groups: In the organized efforts,
"No ideology, no ism, or political the there are various interest groups
greater output with less efforts from and they put pressure over other
a given complex of human and groups for maximum share in the
materials resource only sound combined output. These interest
management And it is on such groups have pressure on an
greater output that a higher organization.
standard of life, more leisure, more
5. Stability in the society:
amenities for all.
Management provides stability in
[Link] utilization of resources: the society by changing and
Management not only decides in modifying the resources in
which particular alternative a accordance with the changing
particular resource be used but also environment of the society.
takes actions to utilize it in that Management provides integration
between traditions and new a) establishment of the organization
inventions and safeguards, society b) Selection of staff for lower levels
from the unfavorable impact of of management
these inventions so that continuity in c) Installing different departments
social process is maintained. d) Designing operating policies and
routines
LEVELS OF MANAGEMENT
e) Assigning duties to their
1. Top Management
subordinates
a) Board of directors
b) Managing directors 3. Middle Management:
c) Chief executives a) Superintendent
d) General Manager b) Branch Managers
e) Owners c) General force etc.
f) Shareholders Functions:
Functions: a) To cooperate to run organization
a) Setting basic goals and objectives smoothly
b) Expanding or contracting b) To understand inter locking of
activities department in major policies
c) Establishing policies c) To achieve coordination between
d) Monitoring performance different parts of the organization
e)Designing/Redesigning d) To conduct training for employee
organization system development
f)Shouldering financial e) To build an efficient company
responsibilities etc team spirit

2. Upper Middle Management: 4. Lower Management:

a) Sales executives a) Foremen
b) Production executives b) Supervisors or charge-hands
c) Finance executives c) Office Superintendent
d) Accounts executives d) Inspectors etc.
e) R&D Functions:
Functions:
a) Direct supervision of workers and future courses of action from the
their work various alternatives
b) Developing and improving work
2. Organizing: Role of each person in
methods operations
any organization is fixed. The
c) Inspection function
concept of role is who will be doing
d) Imparting instruction to workers
what should be known, to achieve
e) To give finishing touch to the
organizational targets efficiently. It
plans and policies of top
is intended that all the tasks
management
necessary to achieve targets are
f) To act as link between top
assigned to people who can do the
management and operating force
best.
g) To communicate the feelings of
workers to the top management. 3. Staffing: Staffing function includes
keeping the various organizational
5. Operating force:
position fixed. This activity is done
a) Workers
by identifying work force
b) Rank and file workman
requirements, keeping the records
c) Skilled and Semi-skilled workers
of the performance of people
d) Unskilled workers
working with the organization.
Function:
a) To do work on machines or 4. Directing: means influencing
manually, using tools etc. people, so that they will contribute
b) To work independently (in case of to the organization targets directing
skilled workers) or under the involves motivation, leadership
guidance of supervisor. styles and proper communication.

FUNCTIONS OF MANAGEMENT 5. Controlling: It is the process of

1. Planning: Involves selecting the comparing the plans with the
objectives and actions to achieves results.
them planning stage involves
6. Coordinating: The essence of
decision making and choosing
management is the achievement of
coordination among people
coordination is a complex process - Born into a wealthy family in the
following the principles by which US in 1856.
organization activity can be - Graduated from Stevens Institute
accomplished. Technology as a mechanical
engineer in 1883.

THE PRINCIPLES OF SCIENTIFIC

EVOLUTION OF MANAGEMENT
MANAGEMENT THEORY
THEORY
-In the early 1900s, the most
•Good management intends to common approach to management
achieve an objective with the least involved offering incentive-based
use of man, machine, money and pay in order to promote initiative
material and at the same time (labeled "initiative and incentive").
maximum satisfaction of the -This was described as workers
participants. giving "their best initiative and in
return [receiving] some special
Taylor's Scientific Management: The
incentive from their employers."
utility of scientific methods to
-Instead, Taylor argued that getting
problems of management was first
initiative out of workers is rare and
introduced by Frederick Winslow
a better approach would be to
Taylor.
apply the scientific method in order
Definition: Scientific management to increase efficiency and
may be defined as the "Art o what is performance.
to be done and the best way of
Principle One: Development of
doing it".
Science For Each Element of Work
Scientific management is the result
Analyze the work scientifically,
of applying scientific knowledge and
rather than using thumb rule. It
scientific methods to the various
means that an attempt is made to
aspects of management and the
find out what is to be done by a
problems that arise form them.
particular worker, how he is to do it,
[Link] what equipment will be necessary
- Father of Scientific Management
to do it. This information is provided The success of scientific
to the worker, so as to reduce management largely depends upon
wastage of tie, material etc. and standardization of system, depends
improve the quality work. upon standardization of system,
tools, equipment and techniques of
production
Principle Two: Scientific Selection, Use of time and motion study:
Placement and Training of Workers Taylor's introduced time and motion
This principle states that select the determine standard work. Taylor"s
workers best suited to perform the undertooke, incurred bystudiesthe
specific task, and then train them on fa workers and the time
within the industry in order to attain necessary to complete task.
the objectives of the enterprise Differential wage system: Taylor"s
workers should also be trained from differential piece rate scheme
time to time to keep them informed incentive for a worker to achieve
of latest development in the high level of optimum output. It
techniques of production. distinguishes the more productive
workers from less productive
Principle Three: Division of Labor
workers and motivates them to
Division of work in smaller tasks and
produce more.
separation of thinking element of
job from doing element of the job, Cooperation between labour and
this is the principle of specialization. management: Mutual respect and
It is essential for efficiency in all cooperation between the workers
sphere of activities as well as in and management helps in providing
supervision work. proper and effective leadership. The
labour starts thinking that it is their
Principle Four: Standardization of
work and they must put their heart
Methods, Procedures, Tools and
in the work assigned to him.
Equipment
Standardization helps in reducing Principle of Management by
time, labor and cost of production. Exception: Taylor suggested that
only major or significant deviations 4. Security activities
between the actual performance 5. Accounting activities
and standard performance should 6. Managerial activities
be brought to the notice of top
management. Top management
should pay more attention to those
Elton Mayo
areas of work where standards and
- father of human relations
procedures could not be established
approach Mayo led the team which
and where there is a significant
conducted the study psychological
variation between standard
reaction of workers in on-the job
performance and actual
situations Mayo concluded that
performance.
work arrangements in addition to
Administrative Management meeting the objective requirements
Theory (Henri Fayol and Others): of production must at the same time
-Henri Fayol is called as father of satisfy the employees subjective
Modern Management requirement of social satisfaction at
-He established the pattern of his work place.
management and the pyramidal -Maslow's level of hierarchy about
form of organization. He pointed out human relations and approach, his
that technical ability is more assumptions are based mainly on
dominating on the lower level of theory of has defined five level of
management managerial ability is hierarchy of needs starting from the
more important on the higher level biological need and then coming to
of management. more intangible ones.
Henri Fayol analyzed the process of 1. Physical needs like food, clothes
management and divided the and shelter
activities of an industrial 2. Safety needs freedom from fear of
undertaking into six groups: insecurity
1. Technical activities 3. Social needs include a sense of
2. Commercial activities being accepted in the society or
3. Financial activities environment one finds himself in.
4. Ego needs include feeling of It is believed that workers are more
important and recognition interested in money and security
5. Self actualization needs include based on these assumptions the
need or desire for personal leadership styles developed, insists
fulfillment of individual potential on tighter control and supervision.
and activity.
Theory of "Y"
Douglas McGregor Theory 1. Some employees consider work as
-He divides leadership is two styles natural as play or rest.
labeled theory "X" and theory "Y". 2. These employees are capable of
The traditional styles of leadership directing and controlling
theory,,X" by McGregor, is performance on their own
exercised to managers on 3. They are much committed to the
assumptions about human beings. objectives of the organization
4. Higher rewards make these
Theory: "X"
employees more committed to
1. An average human being does not
organization.
like to work and he tries to avoid it
5. Given an opportunity they not
as far as possible.
only accept responsibility but also
2. He avoids accepting responsible
look for opportunities to outperform
and challenging tasks, has no
others.
ambition but wants security above
6. Most of them highly imaginative,
all.
creative and display ingenuity in
3. Because of this, the employees
handling organizational issues.
are to be forced, concerned and
threatened with punishments to System Approach to Management
make them put their best efforts. -Modern approaches to understand
management is the systems
These people would not work approach. Here, the organization is
sincerely and honestly under viewed as a system. Every
democratic conditions. department is considered as a sub-
system, it is also possible that every
department can be viewed as a each of these parts in detail to have
system and every section in the a close understanding of the whole
department can be viewed as a system.
sub-system, system approach helps -Ex: Every part of the study such as
to study the basic feature and the eyes, brain, and heart can also
functions of the organization its be viewed as a sub-system, a study
minutest details. of each of the parts of the body in
-The collection of interrelated parts necessary to understand the whole
called as sub-system which body.
constitutes one whole unit. System
approach facilitates the study of
 Herzberg's Two-Factor Theory

-American psychologist Frederick Hygiene factors

Herzberg is regarded as one of the -or extrinsic motivators, tend to
great original thinkers in represent more tangible, basic
management and motivational needs-i.e., Extrinsic motivators
theory. Herzberg set out to include status, job secu- rity, salary,
determine the effect of attitude on and fringe benefits. It's important
motivation, by simply asking people for managers to realize that not
to describe the times when they felt providing the appropriate and
really good, and really bad, about expected extrinsic motivators will
their jobs. sow dissatisfaction and decrease
-The results from this inquiry form motivation among employees.
the basis of Herzberg's Motivation-
Motivation factors
Hygiene Theory (sometimes known
-or intrinsic motivators, tend to
as Herzberg's "Two Factor Theory").
represent less tangible, more
Published in his famous article,
emotional needs-i.e., the kinds of
"One More Time: How do You
needs identified in the "relatedness"
Motivate Employees," the
and "growth" categories of needs.
conclusions he drew were
Intrinsic motivators include
extraordinarily influential, and still
challenging work, recognition,
form the bedrock of good
relationships, and growth potential.
motivational practice nearly half a
Managers need to recognize that
century later. He's especially
while these needs may fall outside
recognized for his two-factor
the more traditional scope of what a
theory, which hypothesized that
workplace ought to provide, they
there are two different sets of
can be critical to strong individual
factors governing job satisfaction
and team performance.
and job dissatisfaction: "hygiene
factors," and "motivation factors,".
The factor that differentiates two-
factor theory from the others we've If management wants to increase
discussed is the role of employee employees' job satisfaction, they
expectations. According to should be concerned with the
Herzberg, intrinsic motivators and nature of the work itself-the
extrinsic motivators have an opportunities it presents employees
inverse relationship. That is, intrinsic for gaining status, assuming
motivators tend to increase responsibility, and achieving self-
motivation when they are present, realization. If, on the other hand,
while extrinsic motivators tend to management wishes to reduce
reduce motivation when they are dissatisfaction, then it must focus on
absent. This is due to employees' the job environment-policies,
expectations. procedures, supervision, and
working conditions. To ensure a
satisfied and productive workforce,
managers must pay attention to
both sets of job factors
 Leadership and Leadership Styles

Leadership -It denotes a few qualities to be

-is a process by which an executive present in a person which includes
can direct, guide and influence the intelligence, maturity and
behavior and work of others personality.
towards accomplishment of specific -It is a group process. It involves two
goals in a given situation.
or more people interacting with
-is the ability of a manager to
each other.
induce the subordinates to work
-A leader is involved in shaping and
with confidence and zeal.
moulding the behaviour of the
-potential to influence behaviour of
group towards accomplishment of
others.
organizational goals.
-capacity to influence a group
towards the realization of a goal. -Leadership is situation bound.

-Leaders are required to develop There is no best style of leadership.

future visions, and to motivate the It all depends upon tackling with the
organizational members to want to situations.
achieve the visions.
SOME OF THE IMPORTANT
-According to Keith Davis,
LEADERSHIP STYLES
"Leadership is the ability to
persuade others to seek defined [Link] leadership style: In this
objectives enthusiastically. It is the style of leadership, a leader has
human factor which binds a group complete command and hold over
together and motivates it towards their employees/team. The team
goals." cannot put forward their views even
if they are best for the team's or
Characteristics of Leadership
organizational interests. They
-inter-personal process in which a
cannot criticize or question the
manager is into influencing and
leader's way of getting things done.
guiding workers towards
The leader himself gets the things
attainment of goals.
done. The advantage of this style is
that it leads to speedy decision-
making and greater productivity [Link] leadership style: the
under leader's supervision. leaders strictly adhere to the
Drawbacks of this leadership style organizational rules and policies.
are that it leads to greater Also, they make sure that the
employee absenteeism and employees/team also strictly follows
turnover. This leadership style the rules and procedures.
works only when the leader is the Promotions take place on the basis
best in performing or when the job of employees' ability to adhere to
is monotonous, unskilled and organizational rules. This leadership
routine in nature or where the style gradually develops over time.
project is short-term and risky. This leadership style is more
suitable when safe work conditions
[Link]/Participative
and quality are required. But this
leadership style: leaders invite and
leadership style discourages
encourage the team members to
creativity and does not make
play an important role in decision-
employees self-contented.
making process, though the
ultimate decision-making power 4. The Laissez Faire Leadership
rests with the leader. The leader Style: the leader totally trusts their
guides the employees on what to employees/team to perform the job
perform and how to perform, while themselves. He just concentrates on
the employees communicate to the the intellectual/rational aspect of his
leader their experience and the work and does not focus on the
suggestions if any. The advantages management aspect of his work.
of this leadership style are that it The team/employees are welcomed
leads to satisfied, motivated and to share their views and provide
more skilled employees. It leads to suggestions which are best for
an optimistic work environment and organizational interests. This
also encourages creativity. This leadership style works only when
leadership style has the only the employees are skilled, loyal,
drawback that it is time-consuming. experienced and intellectual.
 it has taken from the financial
institutions as per the repayment
SOCIAL RESPONSIBILITY OF
schedule also it should inform the
MANAGEMENT
creditors about the developments in
-Social responsibility refers to the
the company from time-to-time.
process with includes several
activities from providing safe [Link] towards
products and services to giving Government The business firm has
apportion of the company's profits to pay its taxes and be fair in its
to welfare organizations. endeavours. It should also support
[Link] towards the government in community
shareholders The business development projects.
enterprise has the responsibility to
[Link] towards
provide fair return on capital to the
competitors: The business firm
shareholders.
should always maintain the highest
2. Responsibility towards ethical standards and maintain
consumers: The management has cordial relations with each of the
to provide quality products and competitors, which is a critical and
services to the customers at sensitive segment.
reasonable prices.
7. Responsibility towards public:
3. Responsibility towards Business units have tremendous
employees: Good working responsibility towards the general
conditions motivate workers to public to support the cause of
contribute their best it is the community development.
responsibility of the management
recognize their unions and respect
their right to associate with a union
of their choices.

4. Responsibility towards creditors:

The business has to repay the loans