FUNDAMENTALS OF MANAGEMENT – MODULE 1 (8–10 MARK ANSWERS, EASY &
POINTWISE)
1. DEFINE MANAGEMENT & ITS IMPORTANCE Management means guiding people and
resources to achieve goals in the best way. Importance: • Helps achieve group goals easily. • Uses
resources properly without waste. • Maintains discipline and teamwork. • Increases productivity and
profit. • Helps company survive in competition. • Improves employee skills through training. • Brings
new ideas and handles changes. • Builds coordination among all departments.
2. ROLES OF A MANAGER (MINTZBERG) A manager performs 10 roles grouped into 3
categories: A) Interpersonal Roles • Figurehead – attends events, represents company. • Leader –
motivates and guides employees. • Liaison – builds contacts with outside people. B) Informational
Roles • Monitor – collects useful information. • Disseminator – shares information with teams. •
Spokesperson – speaks on behalf of company. C) Decisional Roles • Entrepreneur – brings new
ideas. • Disturbance Handler – solves sudden problems. • Resource Allocator – gives budget, staff,
tools. • Negotiator – talks with clients, unions, suppliers.
3. FEATURES OF MANAGEMENT • Goal oriented – always aims at achieving results. • Integrates
resources – joins people + machines. • Continuous – never-ending process. • Universal – used in
school, hospital, business. • Group activity – done by teams, not individuals. • Intangible – cannot
see but feel through results. • Dynamic – changes with technology and trends. • Coordinating force
– connects all departments.
4. NATURE & SCOPE OF MANAGEMENT Nature: • Universal, goal-oriented, continuous. •
Science + Art + Profession. • Group activity, dynamic, intangible. Scope: • Production management
– plant, materials, process. • Marketing management – pricing, promotion, selling. • Finance
management – budgeting, investment. • HR management – hiring, training, appraisal. •
Administration – planning & policy making.
5. IS MANAGEMENT ART OR SCIENCE? Management is both: As Science: • Has principles like
unity of command. • Based on experiments and observation. • Has cause–effect relations. As Art: •
Requires creativity, skill, personal talent. • Depends on experience and practice. • Each manager
has different style. Conclusion: Successful managers use both science (knowledge) + art (skill).
6. DIFFERENCE BETWEEN MANAGEMENT & ADMINISTRATION • Management = execution;
Administration = policy making. • Management = middle & lower level; Administration = top level. •
Management = doing function; Administration = thinking function. • Management influenced by
managers’ values; Administration influenced by govt., society. • Management = employees paid
salary; Administration = owners earn profit.
7. COMPARE THE THREE LEVELS OF MANAGEMENT Top Level: • Includes CEO, Directors. •
Sets goals, makes major policies, plans strategies. Middle Level: • Department heads. • Pass
information between top & lower levels. • Make department plans, supervise supervisors. Lower
Level: • Supervisors, foreman. • Guide workers, maintain quality, check daily work.
8. FUNCTIONS OF MANAGEMENT • Planning – deciding goals and how to achieve them. •
Organizing – arranging people, resources, tasks. • Staffing – recruitment, training, placement. •
Directing – guiding, leading, motivating staff. • Controlling – checking performance, correcting
mistakes.
9. CHARACTERISTICS OF A QUALITY MANAGER • Good communication – clear instructions. •
Emotional intelligence – understands people. • Problem-solving ability – handles issues calmly. •
Delegation skills – gives tasks to right people. • Adaptability – adjusts to changes. • Leadership –
motivates team. • Decision making – takes correct timely actions.
10. PRINCIPLES OF SCIENTIFIC MANAGEMENT (TAYLOR) • Science, not rule of thumb – one
best way to do work. • Harmony, not discord – trust between workers & managers. • Cooperation,
not individualism – work together. • Scientific selection & training – proper job–person match.
Techniques: • Functional foremanship – 8 specialist foremen. • Standardisation – fixed methods &
tools. • Method, Time, Motion & Fatigue study. • Differential piece wage – higher pay for efficient
workers.
11. PRINCIPLES OF ADMINISTRATIVE MANAGEMENT (FAYOL) • Division of work –
specialization increases efficiency. • Authority & responsibility – balance needed. • Discipline – obey
rules. • Unity of command – one boss per employee. • Unity of direction – one plan for one activity. •
Subordination of individual interest. • Remuneration – fair salary. • Centralisation vs
Decentralisation. • Scalar chain – line of authority. • Order – right place for everything. • Equity –
fairness. • Stability of staff. • Initiative – freedom to think. • Esprit de corps – team spirit.
12. HAWTHORNE EXPERIMENT FINDINGS • Workers work better when they feel valued. • Social
needs and group behavior affect productivity. • Money is not the only motivator. • Good supervision
improves performance.
13. CONTINGENCY APPROACH • “No single best way to manage.” • Management depends on
situation, environment, size of company. • Flexible and adaptive approach.
14. BUREAUCRATIC & SOCIAL SYSTEM APPROACH Bureaucratic: • Introduced by Max Weber.
• Clear rules, hierarchy, job roles. • Promotes discipline but is rigid. Social System: • Organization =
social system of people. • Focus on teamwork, communication, relationships.
15. OPEN SYSTEM VS CLOSED SYSTEM Open System: • Interacts with environment. • Example:
business reacting to customers. Closed System: • No interaction with outside world. • Example:
sealed chemical reaction.
16. CHALLENGES FACED BY MANAGERS • Globalization – different cultures. • Technology
change – AI, automation. • Workforce diversity. • Customer expectations. • Economic instability. •
Legal issues. • Innovation needs. • Talent management. • CSR & sustainability. • Crisis handling.
17. MODERN MANAGEMENT TECHNIQUES • MBO – Management by objectives. • TQM – Total
quality management. • Lean Management – no waste. • Six Sigma – reduce errors. • Benchmarking
– compare with best. • CRM – customer relationship mgmt. • ERP – integrated software system.