Management Book

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MANAGEMENT:Management is the art of getting things done through others and with formally organized

groups.

ORManagement is the art and science of organizing and directing human efforts applied to control

the forces and utilize the material of nature for the benefit of man.

American society of mechanical engineers.

Functional concept-as a process, management is what a manager performs.

William Spriegel

Management is the process by which a cooperative group directs action towards a

common goal. Joseph Messie

Human Relations concept-Management is the art of directing and inspiring people.

J.D Mooney, and A.C Railey

Leadership and decision making concept-Management is the art and science of

decision-making and leadership.

Donald J Clough

Management means decision-making Ross Moore

Productivity concept-Management is the art of knowing what to do ------------ in the

cheapest way. F.W Taylor

Management is a technique of increasing productivity.

--Management means designing, organizing defining goals formulating policies and

strategies in accordance with the prevalent environmental conditions and these environmental

conditions are known as situations.

--Management is merging quality and variety with cost that is providing unlimited variety

of goods, better quality and at lowest price level to the customers.

--Management is defined as a process of identifying problems and threats and taking care

of these problems and threats in such manner that ultimately these turn out into opportunities

which could benefit the organization in accomplishment of its objectives.

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In latest view:

Now a days in corporate sector taking advantage of the opportunities does not matter

What matters is to convert or translate the opportunities then to face difficulties.

Definitions based on mixed views:

Good management achieves a social objective with the best use of human and material

energy and time and with satisfactions for the participants and the public.

Mary cursing Niles

Management is the direction of human behaviour towards a particular goal or objective.

Conclusion:

On the basis of all the above-mentioned definitions it can be asserted. Management is the

process which by planning, organizing, staffing, leading and controlling, a human group makespossible the maximum and efficient use of physical resources and helps in realizing the pre-

determined objectives of any organization.

------In modern times when human needs are continuously rising, it is absolutely

impossible to fulfill them single-handed. In such a situation the need of group activity is felt.

Man cannot produce any single thing by himself alone and there is always the necessity of a

human group whose activities and be named collective effort. Thus on human group produce

one particular produce while another such group produce something different and hence, human

needs are fulfill by collective efforts of different human groups.

Now the question arises whether all the peoples comprising a particular human group

are competent enough to achieve success in their activities without any outside discussion and

control.

The obvious to this all-important question can only be in the negative. The reason for

such an answer is complex. So long particular human groups for into have their air aims,

definite planning, proper distribution of work, defining rights and duties, establishing proper co-

ordination among them, directing and controlling their activities, success cannot be achieved

These are the problems, which give rise to another question, which is equally important, and the

question is how to overcome these problems? The answer to this really complex question in

inherent in management.Through the medium of management all these above-mentioned problems can be solve

The activities of a human group can be efficiently managed on the pre-determined problems can

be effectively achieved handling by a manager. It would not be out of place to mention here that

the absence of proper management, the activities of a human group are like a ship without a

captain. Thus it is evident that success of collective efforts requires some special power. AND

THAT POWER IS THE MANAGER, who ensures the success of different activities by the

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process of management. It is important to classify here that the importance of management is

not limited to business alone but it is needed at all those places where human activities take

place-for example: educational Institutions, Religious Institution, Govt. departments, unions

forces, families.

MEANING OF MANAGEMENT

Anything minus Management is nothing--Sherlekar and Sherlekar

MANAGEMENT:The word management can be styled as MANAGE-MEN-T. That means manage men

tactfully. Why manage men tactfully. This is with a view to get the things done being with

them. Thus management means managing men tactfully to get the things done being with them.Thus management. In order to manage men tactfully, one has to understand the highly

unpredictable and uncertain human nature owing to this management is very complicated and

challenging activity.

Some times it is known as a group of administration officers working in a particular

institution and sometimes it means a process of planning, organizing, staffing, directing, co-

coordinating and controlling.

In the light of different opinions the meaning of management can be analyzed in the

following ways:

(i) Management as a process: some times it is defined as a process. A process has

means that different activities like planning, organizing, staffing, leading, controlling

through a definite process.

(ii) In other words, management is a definite process when coordinates different activities

for the attainment of an aim or target set by an institution or organization.

(iii) Management as a discipline: management is fast emerging as a discipline. Discipline

here means a separate and recognized subject, which has its own identity

Management is also being recognized as separate syllabi because it has its own

thoughts, principles and methodology.

(iv) Management as a economic resource: economists have accepted management as aresource of production like other resources (land, labour, capital, material and

machine). Production is not possible without these basic things.

(v) Management as a noun: when it is addressed as a noun, it is related to those persons

who get other peoples work completed. E.g. board of directors, managing, general

manages etc.

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Meaning of management at glance:(i) As an activity: getting things done through others being with them.

(ii) As a process: a series of interrelated functions performed in all organizational.

(iii) As a discipline: a subject of study drawing upon knowledge of others disciplines. A

young and growing discipline.(iv) As a group: a body of persons who perform the task of managing organization. An

elite group in the society.

Nature or Characteristics of management:

(i) Goal oriented.

(ii) Universal.

(iii) Integrated process

(iv) Social process

(v) Activity based(vi) Group activity

(vii) Art as well as

science

(viii) Multi disciplinary

(ix) Intangible

(x) Optimum co-

ordination

between human

and materialresources.

(xi) The combination

of multiple

functions

(xii) Management is a

distinct entity.

(xiii) Management is a

profession

(xiv) Management based on

authorities

(xv) It is needed at all

level

(xvi) It is a social

responsibilities

(xvii) Purposeful

(xviii)It is an executive

function(xix) It is a

coordinating

force

(xx) Dynamic in

nature

(xxi) Management

principles a

relative not

absolute ---- it

means thatmanagement

results are

according to the

situation.

(xxii) Management is

creative and

innovative

formulate

creativity;creativity is the

process

developing new

ideas.

OR

After a careful study of definitions we embark upon such features, which illustrate the

nature of management. Such features are as follows:

(i) It is a process:process means a systematic method of doing some work. Management

is recognized as a continuous process. It is that process in which work is done with

others or it is got done from them. In order to achieve the pre-determined objective a

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manager performs the work of planning, organizing, staffing, leading and controlling.

A manager did these works in a continuous order. So, it is a process.

(ii) Group efforts: management always efforts to group efforts and does not apply to an

individuals. A group rather than an individual can easily and effectively attain

management of an enterprise.

(iii) It is a social process: management is called a social activity because it is connected

with the people working in a human group and which requires organizing their efforts

Any activity, which is connected with the people living in society, is called a social

activity. In this context management is also described as a social activity.

(iv) Attainment of pre-determined objectives: group efforts in management are always

directed towards the achievement of some pre-determined objectives; with ou

objectives management would be difficult if not impossible.

(v) Management has a distinct entity: in view of the widening scope of business it is

not possible for an owner to perform all functions himself. We can say that specially

qualified experts are needed for managing the company.(vi) Management is a universal activity: it is clear that management is not only

connected with business but also with non-business activities also, which is also

important. Management is everywhere.

(vii) Management as a profession: when we have recognized the distinct entity of

management, there should not be any doubt or hesitation to call it a profession. The

quality of a profession is that he must posses some special qualifications or ability for

which he is paid remuneration. The knowledge of management is also a qualification

and managers also get their remuneration for it. Hence, management is considered a

profession.

(viii) Management is an intangible force: management is a force, which is not visible. It

can only be feel or realized on the basis of the success of an organization.

(ix) It is a combination of multiple functions: the basic function of management is to

achieve the objectives of the organization successfully. That is why a manager has to

perform various function like planning, organizing, staffing, leading and controlling

etc. hence management does not mean one particular job but it happens to be a

combination of various jobs.

MANAGEMENT Art, Science and Profession:

As a science: systematic body of knowledge, universal principles, scientific experiments, cause

and effect relationship, validity and predictability.

As an art: practical knowledge, personal skill, creativity and continuous practice.

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As a profession: specialized body of knowledge, formal education service motive

representative association and code of conduct management is not a full-fledged profession.

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MANAGEMENT AS AN ART:

Main features of art are:

(i) Art involves the application of knowledge and skills to achieve desired results.

(ii) Art is essentially creative and the success of an artist is measured by the results he

achieves.

(iii) Art is a personalized process as every artist has his own style or approach.

(iv) Art prescribes row to do things and it can be improved through continuous practice.

Management is essentially an art because:

Firstly, the process of management involves the use of knowledge and skills in solving various

problems.

It seeks to achieve concrete practical results that is output, profits, growth etc.

Secondly, Management is creative as the manager creates new things and improves upon the

old things.

Thirdly, Management is a personalized process every manager has his own approach and

techniques to solve problems, depending upon the environment in which he works.

Lastly, the manager gets perfection in the art of managing through continuous practice.

Thus management fully lives up to the description of an Art and therefore it is an art.

OR

Art implies the application of knowledge and skills to bring about the desired results.

Features:

1. Practical knowledge: every art signifies practical knowledge. An artist must not only

learn the theory but also its application in practice. Similarly a person cannot become

a successful manager simply by reading the theory if must also learn to apply his

knowledge in solving managerial problems in practical life. A manager is judged notjust by his technical knowledge but his efficiency in applying that knowledge.

2. Personal skill: every artist has his own style and approach to his job. This is

level of their personal skill. Similarly every manager has his individual approach and

style on solving managerial problems. The success of a manager depends on his

personality in addition to his technical knowledge.

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3. Result oriented approach: art seeks to achieve concrete results. Every manager

applies certain knowledge and skills to achieve the desired results. He uses CMs to

the growth of his organization.

4. Creativity: art is basically creative therefore every piece of art requires imagination

and intelligence to create. A manager effectively combines and coordinates the factors

of production to create goods and services.

5. Improvement through practice: every artist becomes more and more efficient

through constant practice. Similarly a manager gains experience through regular

practice and becomes more effective.

Conclusion:

One cannot become efficient and effective manager simply by learning. Management

principles by heart it also requires practical application of those results.

MANAGEMENT AS A SCIENCE:

Main features of science are:

(i) Science is a systematized body of knowledge.

(ii) It is based on cause and effect relationship.

(iii) The scientific study is based on observation and experiments.

(iv) The principles of science have universal validity and applicability.

Management is a science because:

According to the given information about science, management is also a systematized body of knowledge. It consists of various concepts, principles and techniques developed

through observation and experience. These principles are universal in nature and establish on

cause and effect relationship. But the methods of observation followed by management are not

purity objective because the subjects are human beings whose behaviors cannot be predicted

with absolute accuracy.

Thus management cannot be regarded as an exact science like physics and chemistry. It

deals with the study of behavior of human beings, which is subject to constant changes and

difficult to predict.

Thus management cannot be regarded as exact science like physics, chemistry etc.therefore management may be called an inexact science, as is the case with other social science

like psychology, sociology.

OR

Science means a systematic body of knowledge pertaining to a specific field of study. It

contains general principal and facts which explains a phenomenon.

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Features:

1. Systematic body of knowledge: management is a systematic body of knowledge

consisting of general principles and techniques. These help to explain events and serve as

guidelines for managers in different types of organization.

2. Universal application: scientific principles represent basic facts about and a particular

field of enquires. These principles may be applied in all situations and at all times

Management contains some fundamentals principles, which can be universally applied

These principles are flexible and need to be modified in different situations.

3. Scientific enquiry and experiment: scientific principles and derived through scientific

investigation and reasoning. So they can be explained logically, scientific principles are

critically tested. Management principles are also based on scientific enquiry and

investigation. These have been developed through practical and experimental experience

of a large number of managers.

4. Cause and effect relationship: principles of science lay down a cause and effect

relationship between related factors; similarly the principles of management establishcause and effect relationship between different variables.

5. Test of validity and predictability: validity of scientific principles can be tested at any

time and any number of times. Every time the test will give the same result.

Principles of science can also be tested for their validity.

Conclusion:

Management is not a perfect science like other physical science such as astronomy,

physics, chemistry, and biology etc. management deals with people and it is very difficult to

predict their behavior accurately so management is a social science.

Management as a profession:

A profession is a caving that requires specialized knowledge and often long intensive

academic preparation:

Features:

1. Specialized body of knowledge: every profession has a well-defined body of knowledge

relevant to the area of specialization. In order to practice a profession a person requires

specialized knowledge of its principles and techniques. There exists a substantially andrapidly expanding body of knowledge in management. Today, management is a separate

discipline having a specialized and organized body of knowledge.

2. Restricted entry: there exist institutions and universities to impart education and training

for a profession. No one can enter a profession without going through the prescribe

course of learning. Many institutions have been set up which offer courses for specialized

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training in management. Formal education and training has become very helpful in

getting jobs as managers.

3. Service motive: a profession is a source of livelihood but professional are primarily

motivated by the desire to serve the community. A profession enjoys community sanction

or respect. A manager of a factory is responsible not only to its owners, by the is also

expected to produce quality goods at reasonable costs and to contribute to the well being

of the community.

4. Representative association: in every profession there is a statutory association or

institution, which regulates that profession. Managers have formed certain associations

for the regular exchange of knowledge and experience.

5. Code of conduct: members of one profession have to abide by a code of conduct, which

contains rules and regulations providing the norms of honesty integrity and professional

ethics. The representative association to ensure self-discipline among its members

enforces the code of conduct. Any member violating the code can be punished and his

membership can be cancelled.

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Conclusion:

Management fulfills several essentials of a profession but like other professions

management does not restrict entry into managerial jobs, to people with a special academic

degree.

Objectives of management at a glance

(i) Securing maximum results with minimum efforts.

(ii) Maximum prosperity for employer and employee.

(iii) Human better mere

(iv) Elimination of all types of waste

(v) Economic growth

(vi) Social justice

Importance of management at glance:

1. Achievement of group goals

2. Optimum utilization of resources

3. Minimization of cost

4. Survival and growth of business

5. Generation of employment

6. National development

OR

According to Drucker, management is a dynamic and life-giving element of every business. In

its absence the means of production remain merely the means and can never be the producers.

We know that not only in the field of business but in other fields also management has

come to occupy an important place. In this reference, it is said that any thing minus

management is nothing.

These are some topics, which clearly highlight the importance of management.

1. Achieving pre-determined objectives: each organization is established with

certain aims. Management is the only power and medium which can help in thesuccessful attainment of these aims. A manager with the help of his expertise and

cleverness makes and assessment of the future events and finally by his corrective action

makes the impossible took simple.

2. Maximum utilization of resources of production: management is that power

which by establishing an effective coordination between the various resources of

production makes an optimum use of these resources. Most efficient use of the limited

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resources is the key to the successful business and thus this fact can be converted into

reality with the help of management.

3. Overcoming competition: these days business is not localized but it has

assumed national or even international dimensions. Competition is increasing day by day

In these competition days only that organization can survive which can make available to

its customers the best quality of goods at the cheapest rates. Only an efficient and clever

manager can make it a reality and save the reputation of an organization.

4. Integration with changing environment: management is not only limited to

various internal function of an organization but it has to compromise with the outer

atmosphere also. So many goods having modern techniques are in the bazaar customers

accept only those products which are cheap and the best. With the help of efficient and

effective management a co-ordination between the new and prevalent work system and

methods can be established to save the reputation of an organization.

5. Research and investigation: a recent research has brought out the fact that

only those companies or business enterprises which are constantly taking interest inresearch activities are developing very fast.

6. Increased profits.

7. To maintain a sound organizational structure.

8. Fulfilling the social responsibility: Sound management monitors the

environment of business and makes necessary changes in the business policies and

practices so as to keep the consumers and workers satisfied to this way managers help an

enterprise to fulfill its obligation towards different sections of society.

9. Management minimizes risks.

10. Reduces cost of production.

11. Economic growth: Management is the catalyst of economic growth

development is a matter of human energies rather than of economic growth and

generation of human energies is the task of management. Management is the mover ad

development in the consequence.

12. Stability: management ensures the survival of an organisation in a fast

changing environment. It co-ordinates the activities of different departments in an

organisation and maintains team spirit amongst the personnel.

13. Human development: Management is not simply directions of things but the

development of men. It improves the personality and caliber of people to raise their

efficiency and productivity. A good manager serves as a friend and guide to hissubordinates.

14. Meets the challenge of change: Management is a catalytic force that enables

an organisation to face the challenge of change. The environment of business has become

very turbulent. Managers maintain a dynamic equilibrium between an enterprise and its

environment through innovation and creativity.

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MANAGEMENT AND ADMINISTRATION

On the basis of different opinions of the experts over the world management and

administration, there are three prevalent concepts: -

(i) American concepts: Administration is a higher-level activity or system and

management is lower.

(ii) English concepts: management is the higher-level system and it has more power than

administration.

(iii) Modern concepts: According to it, management and administration are synonymous

In the modern scientific age of management this is the most prevalent and accepted

concept of management and it makes no difference between management and

administration.

DIFFERENCE BETWEEN MANAGEMENT AND ADMINISTRATION:

Sr.

No.

Basis of

difference

Administration Management

1. Meaning It means the determination of

objectives, plans and policies

of an enterprise.

Management is to translate

threats into opportunities.

2. Purpose Administration aims at

determining the objectives.

Management aims at

achieving pre-determined

objectives.

3. Nature Administration is a decision

making function.

Management is an execution

or doing function.

4. Decisions Administration decides what

is to be done and when it is to

be done.

Management decides who will

do the function and how he

will do it, where he will do it.

5. Scope The term administration is

applicable at the top level ofmanagement.

The term management is more

applicable at middle level andlower level of management.

6. Usage The term administration is

generally used from business

organizations like govt.,

offices, colleges, universities

etc.

Management is generally used

with reference to business

enterprises.

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7. Features

affecting

decisions

Administration decisions are

influenced by govt. policies,

social and political

circumstances and economic

additions.

Management decisions are

mainly influenced by the

target of enterprise.

8. Relationship Administration is related

mainly with the owner and

top-level managers.

Management is related with

the workers and employers of

organization.

9. Function It is a determinative or

thinking function.

It is an executive or doing

function.

10. Concerned It is concerned with

determination of major object

and policies.

It concerned with the

implementation of policies.

11. Level It is mainly top-level

function.

It is largely a middle and

lower level function.12. Influence Its services are influenced

mainly by public opinion and

other outside forces.

Managerial decisions are

influenced mainly by

objectives and policies of

organization.

13. Concerned It is not directly concerned

with direction of human

efforts.

It is a activity concerned with

directions of human efforts in

the executions of plans.

14. Involvement Planning and controlling are

the main functions involvedin it.

Directing and organizing are

main functions involved in it.

15. Skills Conceptual and human skills

used eagerly in govt. and

public sector.

Technical and human skills

used mainly in business

organization.

16. Minister, Commander,

Commissioner, Registrar, Vice

- Chancellor, Governor etc.

Managing director, general

manager, sales manager,

branch manager etc.

LEVELS OF MANAGEMENT (MANAGERIAL HIERARCHY)

The management levels may be classified as follows:

(i) Top management

(ii) Middle management

(iii) Supervisory or operating management

(iv)

Top or executive management:

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Top management refers to the managing at the highest level in the management

hierarchy. It is the ultimate source of authority. It is held responsible for the general success or

failure of the organization.

Top management consists of the board of directors and the chief executive or managing

director they establish overall long-term goals and plans of the organization. It is their

responsibility to ensure success of the organization. It is basically an organ of overall review

and control. Chief executive is concerned with the overall management of the companys

operations. He maintains coordination among different departments of the company. He also

keeps the organization in harmony with its external environment.

Features:

(i) To analyse and interpret changes in external environment of the company.

(ii) To establish long term corporate plans.

(iii) To formulate and approve the master budget and departmental budgets.

(iv) To design broad organization structure.(v) To appoint departmental heads and key executives.

(vi) To coordinate and integrate the activities of different departments and divisions

of the company.

(vii) To provide overall direction and leadership to the company.

(viii) To exercise the overall review and control of the financial and operating results

of the company.

(ix) To represent the company to the outside world.

(x) To decide the distribution of profits.

Intermediate management:

Intermediate or upper middle management comprises departmental or divisional heads.

E.g. works manager, marketing manager, finance manager etc.

It is also known as departmental or functional management. Every divisional head is the

overall uncharged of one particular division or department. He is accountable for the

performance of his division or department to the chief executive. He performs the usua

managerial functions of planning, organizing, staffing, directing and controlling in relation to

one department. He coordinates and controls the activities of all personal working in different

branches of his department.

Middle management:

Middle management consists of all sectional heads.

E.g. plant manager, area sales manager, branch manager, office manager etc.

These executives serve as a link between intermediate or top management and the

operating management.

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Function:

(i) To interpret and explain the plans and policies formulated by top management.

(ii) To control the operating performance.

(iii) To cooperate among themselves so as to integrate the various activities of department.

(iv) To train, motivate and develop supervisory personal.

(v) To lay down rules and regulations to be followed by supervisory personnel.

Supervisory or operating or first-line management:

This is the lowest level of management in an organization. It consists of supervisors,

foremen, sales officers, and purchase officers etc. supervisors and operating managers maintain

close contacts with rank and file workers and supervise day-to-day operations. They are

concerned with the mechanics of jobs.

Function:

1. To plan day-to-day production with is the goals laid down by higher authorities.2. To assign jobs to workers and to make arrangements for their training and development.

3. To issue orders and instructions.

4. To supervise and control workers operations and to maintain personal connection with

them.

5. To arrange material and tools is maintain machinery.

6. To advice and assist workers by explaining work procdures, solving problems etc.

7. To maintain discipline and good human relations among workers.

8. To report feedback information and workers problems to the higher authorities.

CONCEPTS OF MANAGEMENT

(a) Process of management: it includes six ms.

1. Men

2. Money

3. Machine

4. Material

5. Market

(b) As a profession: you need proper degree. There are certain legal rules.

SKILLS OF A MANAGER

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In order to have a proper achievement of good and in order to have plan to be properly

worked on a manager must have certain skills such as: -

(1) Conceptual skills: A manager must have conceptual knowledge of

management. Each principle and concept should be clear in the mind of

a manager and he should be effectively able to apply him.

(2) Technical skills: it is concerned with the application of skill or

knowledge acquired. Management does not simply mean the knowledge

of principles of management rather it is its application which makes its

effective.

(3) Human skills: A manager should have Psychological knowledge. He

should able to deal with different persons in different circumstances.

(4) Decision making skills: in crucial times a manager should be able to

have the ability of making decisions. These decisions must be effective

and practical in use as well.

MANAGEMENT AND SOCIAL RESPONSIBILTIES

FOR:

Manager should have social responsibility for the people. Because manager is a person

who is very skilled, if he will take interest in the social functions or problem, it will create a

good impression on other people living or working under him it will motivate the sub-ordinates

working under him. Thus, it creates a favorable impression on the society, which will ultimately

helps the business.

Managers have a creative and also communicative skill. As their main task is to have the

cordial relations with people inside the organization or outside the organization. The had to

interact with his subordinates, superiors and other members relating to business.

So, the managers are very creative and if they will take part in social problems, thesociety is bound to improve in some kind or others. Managers take the input from the society

e.g. education values etc. if managers will take part in social event or they will become

responsible towards society, the society is sure to make progress become one man can change

the whole environment. It will thus create the source of motivation towards the society

According to System theory, for the efficient working and smooth working small sub-systems

should work properly.

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AGAINST:

The main function of the manager is to govern his organization smoothly and efficiently.

So, he should not make himself responsible towards the society. He should not be able to do his

work properly. The social problem should be left for those people. So generally take the

responsibility (political parties, interest groups etc) of improving are solving the problem of the

society. Manager takes the salary for gobering his organizing properly not for solving the social

problem of the society. Thus, manager should not move his mind towards social responsibilities

of the society.

OR

There are many thinkers who have supported this, but there are others who have expressed their

opinion both sides are given as under:-

Arguments against social responsibility:

1. Contrary to the objective of business: Just as the primary objective of players in

the play-ground is to achieve victory, in the same way the chief objective of

business is to enhance its profits by utilizing its, resources.

2. Inefficiency in the system: there is no power other than self-interest, which can

get work out of people. It owners of business, by ignoring self-interest, start

thinking of social responsibility the whole work-system will turn inefficient.

3. Effects of business values: Business should not have any social responsibility

otherwise social values will come to be dominated by business values, which initself is a painful delaminate. It means that when business is alive to its social

responsibility, the people in the beginning will be so thoroughly impressed by it

that in future business will come to occupy a position of predominance the idea of

social responsibility of management opinion against.

4. Conflicting consideration: A business manager will be guided by two

considerations, namely, private market mechanism and social responsibilities

which are opposite to each other.

5. Arbitrary power: Business managers will get arbitrary power in the matter of

allocation of resources in the welfare of the society. They should have no right to

interfere with the external environment of business.

6. Disregard of marketing mechanism: the doctrine of social responsibilities

implies acceptance of socialist view that political mechanism rather than market

mechanism is the appropriate way to allocate scarce resources to alternative uses.

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7. Burden on customer: if the price in the market for a product does not truly reflect

the relative costs of producing mechanism of the market place will be distorted

The consumers will have to pay higher costs.

8. Difficult implementation: the concept of social responsibility is ill conceived and

ill defined and is difficult to be implemented.

Argument for social responsibility:

1. Business is a part of society: Since business organizations are a part of society they

must have a positive attitude towards the needs of society. Business is only a sub-

system of society and this sub-system must contribute to the welfare of the main

system.

2. Avoidance of govt.regulation: If business does not care of its social responsibility

the govt. has to interfere increasingly in the business system, which adversely affects

the progress of business.3. Long term self-interest of business: the social responsibility of business, if taken

care of in the present ensures the success of the organization in the future.

4. Code of conduct: Members of a profession are bound to follow a code of conduct.

Code of conduct includes rules connected with profession, honesty and morality

which form its base.

5. Business is a creation of the society and so it should respond to the demands of

the society: Since business uses the resources which belong to the society. It is

necessary that every business are obliged to use the social resources for the common

good of society.6. The long-term self interests of the business are best served when business

assumes social responsibilities: There is a growing realization on the part of the

enlightened businessmen that it is in their self-interest to fulfill the demands and

aspirations of the society. People who have good environment, education, and

opportunity make better employees, customers and neighbours for business than those

who are poor, ignorant or oppressed.

7. It is the moral and right thing to do: It is widely agreed that businessmen today

have considerable social power. This power is virtually granted to them by the society

which must have a general relationship with social responsibilities. The socia

responsibilities of businessmen must be proportionate to their social power. If the

businessmen do not assume social responsibilities, their social power must be taken

away by the society through government controls and regulations and other measures.

8. Public image of business would be improved: The business will retain the needed

credibility with the public if it performs its social obligations. It will also avoid

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conflict with the society in its own interest. Good relation with the workers

consumers and suppliers will lead to success of business.

9. The consumers are well informed: They expect higher quality products a

responsible rates. If they dont get fair treatment form business, they will organize

themselves and compel the business its social responsibilities.

MANAGERIAL SKILLS:

1. Planning skills: the manager must passes the skills of thinking the skills of analyzing the

environment, it includes what is happening in the society organization and political

system. He must be able to assess or guess the changes in environment, traits offered by

the changes in environment. He must be able to match two sets of environment on the

basis of external and internal analysis.

2. Organizing skills: organizing skill is needed to specify who will achieve what and how

manager must be in a position of identification of specific activities and specific jobs. Amanager must be clear about grouping of various jobs, span of management, type of

relationship to be established between various people and various jobs.

3. Leading skill: leadership is the ability of individual to influence the people. Recognition

of human factor is also included in leading skill of human factor various leadership track

like communication and motivation are also included in the leadership skills.

4. Technical skills: technical skills refer to the ability and knowledge in using the

equipment, techniques and procedures involved in performing specific tasks. These skills

require specialized knowledge and proficiency in mechanics of a particular job. A

manager must know which skills should be employed in his particular enterprise and be

familiar enough with their potentiality to ask discerning question of his technica

advisors.

5. Human skills: human skills consist of the ability to work effectively with other people.

These are required to win co-operation of others and to build effective work teams

Human skills are reflected in the way a manager perceives his superiors, subordinates and

peers. An awareness of the importance of human skills should be part of managers

orientation.

6. Conceptual skills: conceptual skills comprise the ability to see whole organization and

interrelationships between its parts. These skills refer to the ability to visualize the entire

picture or to consider a situation in its totality. Such skills help the manager to analyse theforces working in a situation and to take a broad and foresighted view of the organization

7. Diagnostic skills: it includes the ability to determine by analyzing and examination, the

nature and circumstances of a particular condition. It is not only the ability to specify why

something happened but also the ability to develop certain possible outcomes. It is the

ability to it through unimportant aspects and quickly gets though the heart of problem.

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8. Controlling skill: there are certain standards, which are fixed in a way such that

accomplishment of those standards leads to the accomplishment of goals. A manager

must keep check on the activities of subordinates and must rectify them if there are any

problems.

9. Decision making skills: there are two types of decisions to be taken by the manager.

(i) Routine and program decision

(ii) Non-routine and non-program decisions.

The course of action to be followed is as under:

1. The manager must be in a position to identify the problem.

2. Reaching to the main cause or the problem.

3. Searching for the alternative solution.

4. Comparing merits and demerits of each solution.

5. Selecting the best course of action.

6. Formulating the plan by the application of the alternatives.

Responsibilities of manager:

1. Responsibility towards suppliers: people who supply raw material, mechanica

components, financial institutions and advertising agencies. It is the duty or says

responsibility of the manager that the suppliers are being paid at the time.

2. Responsibility towards distributors: it is the responsibility of the manager to check

regular supply of the product. Product must be checked for the quality, packaging (as in

the case of children packaging plays a very important role). There must be free testing ofgoods that is distribution of samples. There should be fair return on investment that is fair

commission must be paid. To motivate them the organisation must reward them, credit

facilities must be made available to the middle class people etc.

You can survive in the vest way if the industry will survive:

a. You can take the advantage by showing collectiveness.

b. Compiling with the norms lay down by the association.

c. Providing correct information to organisation.

d. Sharing latest knowledge.

e. Supporting the individual members of the association.

f. Indulging in fair and ethical competition.g. Not using any political or other strategies.

3. Responsibility towards union: employees union is recognized as the enemy of the

organisation.

4. Responsibility towards govt.: Birth growth and death of any organisation will generate

according to statuary provisions and these will be governed by the government of the

organisation and this can be done by

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(i) Sending the correct information.

(ii) Taxes and duties must be paid regularly.

(iii) Organisation must try to operate as a model citizen.

(iv) Organisation must not try to damage the culture of that area and must

try to maintain the rich culture of that area.

5. Responsibility towards customers:

6. Responsibility towards society:

7. Responsibility towards competitors:

8. Responsibility towards workers:

9. Responsibility towards shareholders or owners:

Roles of a manager:

There are different types of managerial roles some of them are given below:

1. Figurehead: In this role manager performs symbolic duties required by the status of his

office. Making speeches, bestowing honors, welcoming official visitors, distributing gifts

to retiring employees are examples of such ceremonial and social duties.

2. Leader: This role defines the managers relationship with his own subordinates. The

manager sets an example, legitimizes the power of subordinates and brings their needs in

accord with those of his organisation.

3. Liaison:It describes the managers relationship with the outsiders. A manager maintains

mutually beneficial relations with other organisations, governments, industry groups etc.

4. Monitor: It implies seeking and receiving information about his organisation and

external events. An example is picking up a rumor about his organisation.

5. Disseminators: It involves transmitting the informations and judgments to the members

of the organisations. The information relates to internal operations and externa

environment. A manager calling a staff meeting after a business trip is an example of

such a role.

6. Spokesman: In this role, a manager speaks for his organisation. He hobbies and depends

his enterprise. A manager addressing the trade union is an example.

7. Entrepreneur: It involves initiating changes or acting as a change agent. For example a

manager decides to launch a feasibility study for setting up a new plant.

8. Disturbance handler:This refers to takingcharge when the organisation faces a problemor crises. For example a strike, feud between subordinates, boss of an important

customer. A manager handles conflicts, complaints and competitive actions.

9. Resource allocate: In this role a manager approves budgets and schedules sets priorities

and distribute resources.

10. Negotiator: As a negotiator a manager bargains with suppliers, dealers, trade unions

agents etc.

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Functions of management:

Planning:

It is a process of thinking before doing. It involves determinations of goals and theactivities required to be performed to achieve the goals. It consists:

What is to be done?

(i) How it is to be done?

(ii) Where it is to be done?

(iii) When it is to be done?

(iv) By whom it is to be done?

So planning is a process of shorting out the path for attaining the determined objective of

the business. Over all planning is deciding that in present, what is to do in future.

Organising:Organizing refers to the way in which work of a group of people is arranged and

distributed among the group members to achieve the objectives of an organisation. As a

function of management organizing refers to the following:

(a) Bringing together human and non-human resources that

is the work to be done and its distribution in human resources.

(b) To define and establish authority responsibility relationship for the

achievement of goals.

(c) Determination of objectives.

(d) Division of activities into jobs(e) Fitting individuals into jobs, and

(f) Developing relationships.

In conclusion we can say that organizing refers to distribution of work to the superiors

and sub-ordinates and fixing there authorities and responsibilities.

3. Staffing:

Staffing is the process of determining the manpower requirement that could meet the

companys objectives. Staffing is a managerial function of attracting, acquiring, developing and

maintaining the human resources required to achieve the organisation objective efficiently.Staffing also involves upgrading of quality/skills of the staff to get higher performance

from then. Personnel department of an organisation looks after the function of staffing. Staffing

usually includes the following activities:

(i) Human resource planning.

(ii) Announcing vacant positions, that is recruitment.

(iii) Receiving applications.

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(iv) Administering test.

(v) Interviewing.

(vi) Medical test.

(vii) Final selection and appointment letter.

(viii) Orientation and placement.

4. Directing or Leading:

Directing as a function of management is concerned with instructing, guiding and

inspiring people in the organisation to contribute to the best of their capabilities for the

achievement of organizational objectives. As a conclusion directing includes the following:

(a) Communication: it is the process of passing information and

understanding from one person to another. This process is necessary for making

the subordinates understand what the management expects of them. A manager has

always to tell the subordinates what to do, how to do it and when to do it. He has to

create an understanding in their minds in regard to these matters.(b) Leadership: a good manager must also be an effective leader

Leadership is concerned with influencing the behavior of followers. In order to get

the cooperation of employees, the manager must have leadership skills. The style

of leadership will vary from situation to situation.

(c) Motivation: effective motivation is necessary for getting voluntary

cooperation of the subordinates. Different types of rewards motivate differen

people. Every manager should study the behaviour of individuals working under

him to provide him or her proper inducements. To some financial incentives are

important, while others are motivated by non-pecuniary incentives like job

security, job enlargement, freedom to do work and recognition.

(d) Issuing orders and instruction by the superior.

(e) Leading the subordinates to influence their activities towards

achievement of goals.

(f) To ensure that the subordinates are working as per plans and policies.

5. Controlling:

Controlling is a process of verifying whether actual performance is in accordance to the

planned performance and to take corrective action wherever required.

It involves comparison of actual performance with the planned performance as to qualityquantity, time taken etc. and than analyse the deviations and to take corrective measures to

correct the deviations. It involves the following steps:

1. Establishment of standards.

2. Measurement of actual performance.

3. Comparison of actual performance with the planed performance.

4. Find out deviations.

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5. Taking corrective action.

MANAGERIAL ETHICS:

The term ethics refers to value-oriented decisions and behaviour. The word ethics

comes from the Greek root, ethros, meaning character, giving beliefs, standards, or deals that

pervade a group, a community, a people--------. Today ethics is the study of moral behaviour

the study of how the standards of moral conduct among the individuals are established and

expressed behaviourally. Terms such as business ethics, corporate ethics, medical ethics, or

legal ethics are used to indicate the particular area of application. But to have meaning, the

ethics involved in each area must still refer to the value-oriented decisions and behaviour of

individuals. Ethics refer to a set of moral principles, which should pay a very significant role in

guiding the conduct of managers and employees in the operation of any enterprise. Ethics is

concerned with what is right and what is wrong is human behaviour. It is normative and

prescriptive, not neutral. It addresses the question of what ought to be. Ethics refer both to thebody of moral principles governing a particular society or group and to the personal normal

precepts of an individual.

Some people subscribe to a utilitarian reference in determining what is wrong and what is

right. They hold that a proposed course of action should be judged from the standpoint of

greatest good for the greatest number of people. From this point of view, there are few absolute

standards and each issue must be judged by studying its impact upon all affected parties.

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ETHICS AND SOCIAL RESPONSIBILITIES:

The term social responsibility conveys the moral conduct that relates to such broad

issues as environmental pollution, discrimination, poverty, unemployment and inflation

Accordingly, an organization whose practices contribute to inflation, unemployment, increasedpoverty and like would be viewed as socially irresponsible---as not fulfilling its responsibility to

society. An automobile manufacturer who produces cars with faulty brakes, a pharmaceutical

house that makes false claims about its comd remedies, or a food company house TV ads

promote substandard food items are socially irresponsible.

Some people feel that social responsibility is linked to organisation and ethics to

individuals, but this is not a useful distinction. In the final analyses, decisions are made by

people and therefore, individual managers at some level must assume responsibility for every

corporate decision. The executive who lies about a competitors product, the manufacturer who

markets a highly inflammable article of clothing, the industrialist who dumps pollutants into a

stream-all behaves in an ethically irresponsible way. The most responsible way to distinguishbusiness ethics from social responsibility is in terms of a decisions implications for society as a

whole. Within this frame of reference, business ethics are concerned with microethics (relating

to daily operating decisions with limited social impact), social responsibility is concerned with

macroethics relating to decision with broad implications for a large segment of society.

However this distinction is not even followed in practice. The term ethics is used to

convey both microethics and macroethics.

DIFFICULTIES IN ESTABLISHING MANAGERIAL ETHICS:

The problem of laying down managerial ethics is more complicated than it is in

established professions such as medicine and law. The physician and lawyer understand clearly

that their responsibility is to the patient or the client. The manager is torn between the interests

of owners, employees and customers so that the client group is often impossible to identify

and isolate. Whereas the physicians actions are ethical if the patients interests are served,

the manager enjoys no such security.

Established medical and legal associations have the legitimate authority to enforce

standards of behaviour. There is no comparable management organisation that possessed the

right to enforce ethical standards. Therefore, we have great difficulty in resolving the problems

caused by questionable acts such as paying bribes or similar actions unless a law is violated. In

management, the legal system also becomes the ethical system and where higher standards of

behaviour than those required by law are desired, there is no way to enforce them.

There are four ways to establish acceptable standards of behaviour. The first is the

establishment of minimum standards of behaviour by law. But if law dictates ethical behaviour

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the true meaning of personal morality, individual responsibility and free choice is lost

Secondly, an attempt should be made to develop accepted code of ethics to guide managerial

action. In India and other countries, management associations have attempted this approach

But how to enforce the standards and make allowances for organizational and environmental

differences is the main problem.

The third approach is to follow the lead of medicine, law, engineering and accounting and

establish a professional society to enforce codes of behaviour for the managers. This option

would, however, require a new type of management organisation with mandatory membership,

professional certification, and so on. Nothing approaching this presently exists. Any move n this

direction would be, at best, long-range in character. One final option is the development of

individual organizational code of behaviour. This idea has a great deal of support and short-

term promise. But the individual organizational codes do not provide for uniform standards

required of business.

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EVOLUTION OF MANAGEMENT THOUGHT:

1. Classical (Traditional) approach:

(a) Bureaucracy (Webers)

(b) Scientific management (Taylors)

(c) Management process school (Fayol) (Administrative theory)

Human relations approach (Neo-classifical approach) (Elton mayo) (It helps inloving and caring the employees, it held the stress on social aspects only):

Behavioural science approach (Neo-classifical approach):

Systems approach (Modern approach) (There should harmony among the sub-systems

and among different departments of organisation):

Contingency approach (Modern approach) (different theories needed for different

situations):

Quantitative approach (Modern approach):

Classical theory:

The classical organisation theory is also called the traditional theory. In this theory, we

shall discuss the ideas of several contributors such as Taylor, Fayol, Luther Gulick, and Max

Weber. All these thinkers were dissatisfied, in one way or the other, with the organizational

practices of their time.

The classical organisation theorists dealt almost exclusively with the anatomy of formal

organisation. Organisation is treated like a machine and so making each individual, working in

the organisation efficient, can increase efficiency. For instance, F.W. Taylor emphasized on

division of labour, fixing everybodys work for the day and functional formanship. That is why;

Taylors scientific management has been referred to as machine theory. It may be noted that

scientific management group emphasized efficiency of lower levels of organisation. It was

Henri Fayol who showed concern for efficiency at the higher levels for the first time.

Features:

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The classical theory is more or less mechanical in nature as is revealed by its following

features:

a. Classical organisation theory is built around an accounting model.

b. The relationship between workers and management is established through

formal communications, defined tasks and accountability and formalized procedures and

practices to minimize conflict between them.

c. The worker is essentially an economic man who can be motivated basically

by economic rewards. Money is considered the main motivator under this theory.

d. This approach to the organisation is the embodiment of the extra pair of

hands concept.

e. In designing the hob and in picking the extra pair of hands, classical theory

assumes man to be relatively homogenous and relatively unmodifiable.

f. Stability of the employees-stability in the sense of minimizing changes

within the employees-is a goal in the organisation.

g. Classical theory is in its essential character centralized, and the integrationof the system is achieved though the authority and control of the central mechanism.

Criticism of classical theory:

The classical theory is criticized on the following grounds:

(a) Closed system: Classical theorists have viewed organisation as a closed system,

that is, having no interaction with the environment. This assumption is totally unrealistic.

A modern organisation is an open dynamic system, which has interaction with the

environment.

(b) Unrealistic assumption about human behaviour: The classical writers lacked

sensibility to the Behavioural dimensions of an organisation and made over-simplified

and mechanistic assumptions for the smooth running of organisation ignoring all

complexities of human who perform tasks assigned to them and ignored their social

psychological and motivational aspects of human behaviour. Human behaviour is most

unpredictable and complex. This assumption of classical writhers led the workers to

frustration, conflict and failure and thus made man subordinate to the organisation.

(c) Inadequate emphasis on human beings: the interplay of individual personality

informal groups and inter-organisational conflicts in the formal structure appears to be

neglected by the classical writers. Bennis feels that the focus of classical theory is on

organisation without people.(d) Economic rewards as main motivators: the assumption that people at work can

be motivated solely through economic rewards is also wrong. Several researches in

human behaviour have contradicted this assumption. Non-monetary factors like better

status and job enrichment can also motivate the workers.

(e) Hierarchical structure: the classical theory is based upon the hierarchical

structure that establishes the authority relationship between individuals in an

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organisation. It attempted to prescribe the right organisational structure. This was a very

narrow approach as it concentrated only on line and staff structures. The classical writers

did not explore why certain forms of organisational structure are more effective than

others.

(f) Over emphasis on universality: classical theorists have claimed that these

principles have universal application. This suggests that the same principles can be

applied in: (i) different organisations, (ii) different management levels in the same

organisation, and (iii) different functions of the same organisation. The empirica

researches, however, suggest that none of the principles has such characteristics

Moreover, there are many of the principles, which are actually contradictory with other

principles. For example, principle of specialization is quite in conflict with the principles

of unity of command. Peter Drucker, Ernest Dale, etc. have also criticized universality

concept.

(g) Bureaucratic behaviour: Webers ideal bureaucracy, a major constituent of

classical theory, suggested strict adherence to rules and regulations. The scope forindividual initiative and their contribution to the organisation goal is thus limited. The

result is red-tapism and observation of rules and regulations becomes the main objective

while the real objectives for which these rules and regulations are formed are forgotten.

Bureaucracy:

According to the name bureaucracy theory was evolved by the German sociologist Max

Weber (1864-1920). The theory of bureaucracy is based upon hierarchy of authority and web of

rules and relations. It visualizes a machine model of organisation characterized by impersonal

control over human beings.

Characteristics:

(a) A well-defined hierarchy of authority with clear lines of authority and control and

responsibility concentrated at the top of the hierarchy.

(b) A high degree of specialization.

(c) A division of work based on functional departmentation.

(d) A system of rules covering the rights and duties of employees.

(e) A definite system of procedures for dealing with the work situation and

rationally coordinating activities.(f) A centralized system of written documents (the files) for collecting and

summarizing the activities of the organisation.

(g) Impersonality of relationships between employees.

(h) Recruitment of managers on the basis of ability and technical knowledge.

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The bureaucracy, or bureaucratic model, was one of the first theories of organisation. It

was a theory; Weber hoped that would be used to understand how and why organisations were

structured as they were, and the standard against which other organisations would be compared.

But like most ideal forms of anything it was an extreme, an exaggeration. Having some

specialization, adequate procedures and rules, and some centralization was and is clearly better

than having no organisation at all. But Webers bureaucratic model quickly became

synonymous with a rigid, unbending, inflexible structure manned by robots.

Criticism of bureaucracy:

Today when we hear the word bureaucracy, it immediately brings to mind visions of a

ponderous, slowly moving organisation-one steeped in red tape, meaningless hurdles, and

inefficiency. Various grounds of criticism of bureaucracy are as under:

1. The specialization of labour often inhibits effective communication among

technical specialists and between higher and lower levels of the organisation.2. The procedures and rules sometimes encourage organisational members to act

mechanically rather than exercising initiative and using their inherent creativity. They

often breed resistance to change.

3. Promotions in real life can result from whom one knows and how one plays the

organisation game rather from technical ability. Competent people may be denied

promotion.

4. Bureaucracy involves excessive paperwork, as every decision must be put in

writing. All documents have to be maintained in their draft and original forms. This leads

to great wastage of time, stationery and space.

5. Personnel in a bureaucracy tend to use their positions and resources to perpetuate

self-interests or the interests of their sub-units. Every superior ties to increase the number

of his subordinates as if this number is considered a symbol of power and prestige. It is

hard to destroy bureaucracy even if it has outlived its utility.

6. Bureaucratic procedures involve inordinate delays and frustration in the

performance of tasks. The procedures are nevertheless valued, perpetuated and multiplied

for their own sake as also to pass the buck.

Despite its drawbacks, bureaucracy has become an integral feature of modern

organisations. It cannot be wished away. It is, therefore necessary to overcome its negativeaspects through proper application of rules and regulations, and reconciling the individual needs

and organisational goals.

F.W. Taylors scientific management (1856-1916):

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F.W. Taylor scientific management means managing the affairs of an organisation

scientifically in contrast to the rule of thumb approach.

According to him, scientific management is the art of knowing exactly what you want

men to do and then that they do it in the best and cheapest way.

He is regarded as the father of scientific management, the main objective of scientific

management was to eliminate wastage and increase the all round efficiency in the working of

the organisation.

He was the first person who insisted on the introduction of scientific methods in

management. He launched a new movement in 1955, which is known as scientific

management. That is why; Taylor is regarded as the father of scientific management.

He was born in 1856 in Philadelphia, U.S.A. he started his career as an apprentice in a

small machine making shop in 1870 and rose to the position of chief engineer of Midvale Steel

works in 1884 at the age of 28. Taylor conducted a series of experiments over a period of more

than two decades. He experimented with machine tools, speed metals and the like. One of his

experiments led to the discovery of high-speed steel, which made him very popular. Otherexperiments related to the way men handled materials, machines and tools which led him to the

development of a coordinated system of shop management. In short, he experimented in

different fields to eliminate wastage of all types, increase the efficiency of workers and provide

for functional management.

Taylor was a man of strong will and convictions, he wanted to apply scientific reasoning

to management. After leaving Midvale Steel Works, he joined Bethlehem Steel Company where

he introduced scientific management. He was highly opposed by the management and the

workers and his services were terminated unceremoniously in 1901. Taylor presented his first

paper entitled Shop management was published in 1903; it focused attention on hi

philosophy on management. His famous book principles and methods of scientifi

management was published in 1911 and his other contribution was testimony before the

special house committee which was given in 1912. it may be pointed out that the last two

works were combined in one book entitled scientific management in 1947 by Harper and

Brothers.

Taylors principles of management:

Taylor developed a number of principles of scientific management.

Science, not the rule of thumb: according to this principle scientific methods should bedeveloped and used to perform each job and job should not be done as a rule of thumb, we

should think before doing. For this purpose first normal time required to perform a job should

be determined. Secondly fair days work of the workman be determined. Thirdly the best way of

doing the work and a last maintaining standard working conditions and providing standard tools

and equipments.

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Close co-operation between workers and management (cooperation, not

individualism): according to this principle objectives of organisation can only be achieved by

close cooperation between all the workers and all the levels of management in an organisation

and each superior and subordinate should cooperate each other to achieve the common

objective of the organisation.

Scientific selection, training of the workers: this principle suggests that skills and

experience of the workers must be properly matched with the jobs, which they have performed.

So selection should be based on tests and interviews in specified field, training be given if

required and their capabilities should be developed to the maximum.

Division of work and responsibility (separation of planning and operational works):

there should be clear-cut division of work and responsibility between work and management.

E.g.planning is the work of management and so managers should be responsible for the proper

planning where as execution of plan is the work of workers and so worker should be responsible

for proper execution of planning.

Mental revolution (harmony): in an organisation the personnels (persons who areworking on an organisation) should be made mentally prepared to perform the activities

assigned to them. So management should create suitable working condition and resolve all

problems scientifically and the workers should perform their job devotedly and use th

resources efficiently.

Maximum prosperity for employers and employees: this principle requires that the

aim of management should be to secure maximum prosperity for the employers along with the

maximum welfare of employees.

Criticism of scientific management:

Taylors work was criticised on the following grounds:

1. The use of the word scientific before management was objected because what is

actually meant be scientific management is nothing but a scientific approach to

management.

2. It was argued that the principles of scientific management as advocated by Taylor

were confined mostly to production management. He ignored certain other essential

aspects of management like finance, marketing, accounting and personnel.

3. Taylor advocated the concept of functional foremanship to bring about

specialization in the organisation. But this is not feasible in practice as it violates theprinciple of unity of command.

4. Trade unionists regarded the principles of scientific management as the means to

exploit labour because the wages of the workers were not increased in direct proportion

to productivity increases.

5. Scientific management is based on the assumption that people are motivated by

material gains. Taylor and his associated concentrated on physical and economic needs

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and over-looked the social and ego needs of people. Later experience has revealed that

financial gain is not the only thing that matters. Workers also want job satisfaction

participation and recognition.

6. Scientific management is quite limited in scope. It focused attention completely on

efficiency at the shop floor. As a consequence management became the study of shop

management while the more general aspects were overlooked. Scientific management has

thus been described as a theory of industrial engineering.

7. Increase in work speed: in scientific management the workers are supposed to

work with more speed, which affects their health.

8. no chance to show skill: in scientific management workers are supposed to work

according one schedule and no thought is given to personal within and skill.

9. Monotonous work: the workers are supposes co work only the specified portion

of work continuously for many years the same work for many years make the work

monotonous.

10. Lack of initiative: no chance is left to show their ability only a mechanizedprocess of work is followed.

11. Lack of employment opportunities: more work by lesser worker thus reduces the

chance of more employment.

12. Exploitation: workers are not given their due shares in the gains due to

increased productivity of the enterprise. Comparatively, less efficient workers who are

failed to achieve the standard are penalized wages do not rise in

the same proportion in which productivity of labour increases.

13. Weakness of trade unionism: scientific management reduces the role of trade

unions as standards of outputs, wages and working conditions are determined on

scientific bases. There is little scope of bargaining on this ratter. The differential piece-

wage divides the worker into efficient and inefficient. Scientific management may lead to

accuracy, as workers have to carry out the instructions of their functional basis. It cuts the

roots of trade union movement.

OR

Speeding up of workers: workers feel that scientific management is nothing but a device

to force workers to a greater speed, without much regard for their health and safety. It creates a

lot of physical and mental strain on them.Loss of workers skill and initiative: he workers had to work according to the

instructions of the foreman. This leads to loss of initiative from the workers and they cannot

suggest better method of work. They further allege and too much of standardization, a pre-

requisite for scientific term, due to loss of workers initiative it results into lower productivity.

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Monotony: under this function of planning is separated from that of doing. Every worker

is expected to perform his small part of a job due to specialization. This makes the work

monotonous and worker lends to lose interest in his job.

Unemployment: Scientific management reduces the number of processes and motions of

workers, increases the hourly or daily output per worker, increases their efficiency by

standardization and decision of labour, thereby, it creates unemployment by requiring lesser

number of workers.

Exploitation of workers: the workers feel that gains increased profit is taken away by

investors and only insignificant benefit is given to the workers by way of increase in wages and

bonus.

Discrimination between workers: under this, efficient workers get more wages as

compared to the inefficient ones due to the differental wage incentive scheme.

Undemocratic in nature: workers object that scientific management is undemocratic in

nature as it gives absolute control over workers to the functional bosses. The workers have to

follow the instruction of the bosses without thinking on the part of the workers.Unsuitable for small-scale unit: some employers are of the opinion that scientific

management is only suitable for large-scale units. Small-scale units cannot afford to introduce

the scheme of scientific management.

Techniques or elements of scientific management:

Functional foremanship: Taylor believed that a single foreman might not be competent

to supervise all functional matters. Functional foremanship involves supervision of a worker by

several specialist foremen. So this concept is opposite of the principle of unity of command.E.g. matter relating to the speed of work of a worker should be supervised by speed supervisor

and repair and quantity there of should be supervised by the repair supervisor.

Standardization of work: according to this technique standards should be fixed at every

level. So that the jobs can be performed efficiently. E.g. standard tools and equipments should

be provided to the workers. Standard working conditions are provided at work place. Standard,

size, quality, weights and other measures should be fixed. Standard time required performing a

unit of job and standard working hours of a fair day. Standard performance of machines in a

standard time.

Simplification of work: the work should be simplified in a way so that an average

worker can easily understand the steps to be performed to do a specified job. Simplification willcertainly improve the efficiency resulting more production and reduction in cost and wastages.

Fatigue study: according to this technique management should determined the amount

and frequency of rest intervals in completing a task. Because human being is bound to feel tired

if works without rest interval for a long period and after getting tired he will not be able to

perform the job with full capacity. But by rest he will regain stamina.

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Method study: there may be various methods to perform a job with different cost

requirements. So the organisation should try to find out the best way to perform the task. E.g

shoes may be manufactured manually or by machines, which ever costs less be adopted.

Deferential wage system: in this technique Taylor suggested that differential wage

system for the wages to the employees on the basis of their performance should be introduced

which will develop the idea/concept do more to earn more. The inefficient worker will also

try to do to the maximum of his capacity and so the habit of doing the best and more in an

efficient manner is develop.

Mental revolution: working of the subordinate and superior is based on whether they are

mentally prepare for doing the job or not. A positive attitude of both towards each other each

necessary there must be an environment in an organisation in which the workers feel that the

management is exploiting them. On the other hand management also should have no concept

that the workers have a tendency of miss use of tools and equipments, resulting wastages.

Time study: time study is a technique, which is used to measure/determine the time that

may be taken by workmen of average skills/ability to perform a job/task. Purpose of time studyis to determine standard time required to perform a specified job and so fair days

work/workman. Time study is conducted with the help of stopwatch.

Motion study: motion study is a technique, which involves close observation of

movements of body and limps required to perform a job. Its purpose is to determine the best

way of doing a job by eliminating the wasteful motion, which will further reduce the fatigue

resulting improvement in efficiency. Micro chronometer is the tool of study.

Administrative theory:

Henri Fayol was a French industrialist. He joined a French mining company in 1860 as an

engineer and rise to the position of its managing director 1888. Through, his long practical

experience Fayol developed a general theory of management. He published a book

administration industrial general in French in 1916, which was translated into English in 1929

under the title general and industrial management.

Fayol began by dividing all industrial activities into six groups:

1. Technical,

2. Commercial,

3. Financial,4. Security,

5. Accounting, and

6. Managerial.

He gives a lot of principles of management which are explained below:

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Division of labour: division of labour means dividing the work among members of

organisations. It leads to specialization. It increases the efficiency of individual employee.

Parity of authority and responsibility: authority and responsibility are two sides of

same coin. Authority refers to the right of a superior to give orders to subordinates regarding

use resources of the organisation and to take decisions on specified matter. Responsibility on

the other hand, means obligation with respect to the performance of functions and achieving

goals. There must be parity between authority and responsibility.

Discipline: discipline in the context of management means obedience that is complying

with rules and regulations of the organisation.

Unity of command: according to this principle, a subordinate should receive orders and

be accountable to one and only one superior. No employees therefore, should be asked to

receive orders and instructions from more than one superior.

Unity of direction: efforts of all the members of the organisation should be directed

towards common goals. This principle ensures unity of action, and coordination.Subordination of individual interest to general interest: the interest of the

organisation must precedence over the interest of individuals. In other words, individuals should

give up their personal interest in the interest of the enterprise.

Fair remuneration to employees: remuneration of employees should be fair and

reasonable wages should be determined on the basis work assigned cost of living, and financial

position of the business.

Centralisation and decentralization: when top management retains most of the decision

making authority, is called centralisation, sharing authority downwards leads to decentralization

Fayol says that an organisation should strive to achieve a balance between centralisation and

decentralization.

Scalar chain: it includes the chain of superiors from the top to the lowest rank in

management. Each manager is superior to the manager below him but he is also subordinate to

his own superior. According to this principle each superior is to provide direction or instruction

to immediate subordinate and subordinate to suggest or to complain to his immediate superior

Some times orders, directions, suggestion, complain got delate. While communicating because

of the strict compliance of scalar chain. Therefore the avoid the delays Fayol suggested the

concept of gang plank. According to which two employees at the same level can

communicate each other directly. But each one of them must inform to his own superior.

Order: this principle is important to make the best use of personal and to avoidunnecessary delay in work. The principle is concerned with arrangement of things, which is

called material orders, and placement of people called social order.

Equity: the principle of equity suggests tha

Management Book

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