Unit :1

16 Marks

1. Trace the evolution of management with reference to the contributions madeby management thinkers.Management is defined for conceptual, theoretical and analytical purposes asthat process by which managers direct, maintain and operate purposiveorganizations through systematic, coordinated, cooperative human efforts.Management is a process involving planning, organizing, staffing, directing andcontrolling human efforts to achieve stated objective in an organization.Contributions of:Peter Drucker,F.W. Taylor,Elton Mayo,Henri Fayol,Max Weber,Henry Gantt,Frank & Lillian Gilbreth.These contributions came bit by bit and in haphazard manner and have failed tostimulate to study management as a distinct discipline. However their ideas created anawareness about managerial problems. 2. What is the role of scientific management in the modern era?Scientific management involves specific method of determination of facts through observation. The concept of scientific management was introduced by Frederick Winslow Taylor in the USA in the beginning of 20th century. It was further carried on by Frank and Lillian Gilbreth, Henry Gantt, etc. It was concerned essentially with improving the operational efficiency at the shop floor level.

“Scientific Management is concerned with knowing exactly what you want men to do and then see in that they do it best and cheapest way”.

Scientific management was introduced by F.W Taylor who is known as the Father of Scientific Management. He adopted scientific methods to increase the productivity and greater efficiency in production.The Features of Scientific Management are:- Separation of planning and working Functional foremanship Job analyzers

• Time study or Work measurement • Method study • Motion study • Fatigue study Standardization Scientific selection of training Financial incentives Economy and Mental revolution.Role of scientific management in the modern era Paved way for progress in productivity Employee-Employer relationship to be harmonious Training & Development is the necessity of the hour Elimination of wastes through quality management is a control measure

Optimal utilization of resources made possible.Scientific management is still considered the basic idea for paving the way of modern management approach.

 

3. Explain the contributions of F.W.Taylor to Management.“Scientific Management is concerned with knowing exactly what you want men to do and then see in that they do it best and cheapest way”.Scientific management was introduced by F.W Taylor who is known as the Father of Scientific Management. He adopted scientific methods to increase the productivity and greater efficiency in production.Principles of Scientific Management: Replacing Rule of thumb with science Harmony in group action Cooperation Maximum output and Development of workers. The Features of Scientific Management are:- Separation of planning and working Functional foremanship Job analyzers

• Time study or Work measurement • Method study • Motion study • Fatigue study Standardization Scientific selection of training Financial incentives Economy and Mental revolution.Benefits of scientific managementTaylor’s scientific management is more relevant to mechanization and automation-technical aspect of efficiency- than the broader aspects of management of anorganization. It created awareness about operational efficiency at the shop floor levelthan at the higher levels.

 4. Explain the contributions of Henri Fayol.Management is simply the process of decision-making and control over the action of human beings for the expressed purpose of attaining pre-determined goals. “Management is the art of getting things through and with people in formally organized groups”.Administrative Theory of Management – Usage of the term ‘Administration’; thesix activities of an industrial organization namely, technical, commercial, financialsecurity, accounting and managerial.Fourteen general Principles of Management – Division of work, .. Espirit de corps.Five Elements of management – Planning, Organizing, Commanding, Coordinating,Controlling

Six Managerial qualities – Physical, Mental, Moral, Educational, Technical and Experience.

Fayol made a clear distinction between management principles and managementelements. These principles are flexible and capable of being adopted to every need. Itis a matter of knowing how to use each of them which is a difficult art requiringintelligence, experience and proportion. 

5. Explain the contributions of Abraham Maslow and McGregor.Motivation is one of the most important factors affecting human behavior andperformance. This is the reason why managers attach great importance to motivationin organization setting. ‘Motivation represents an unsatisfied need which creates astate of tension or disequilibrium, causing the individual to move in a goal directedpattern towards restoring a state of equilibrium by satisfying the need’. THEORY X AND THEORY YDouglas McGregor proposed two distinct views of human beings: on basicallynegative, labeled Theory X, and other basically positive, labeled Theory Y. Afterviewing the way in which mangers dealt with employees, McGregor conclude that amanagers view of the nature of human being is based on a certain grouping ofassumptions and that he or she tends to mold his or her behavior toward employeesaccording to these assumptions.

Under Theory X, the four assumptions held by mangers are:1. Employees inherently dislike work and, whenever possible, will attempt to avoid it.2. Since employees dislike work, they must be coerced, controlled or threatened with punishment to achieve goals.3. Employees’ will avoid responsibilities and seek formal direction whenever possible.4. Most workers place security above all other factors associated with work and will display little ambition.In contrast to these negative views about the nature of human beings, McGregor listedthe focus positive assumptions that he called Theory y:

1. Employee can view work as being as natural as rest or play.2. people will exercise self –direction and self –control if they are committed to the objective.3. The average person can learn to accept, even seek, responsibility.4. The ability to make innovative decisions is widely dispersed throughout the populations and is not necessarily the sole province of those in management positions.

Theory X assumes that lower-order needs dominate individuals. Theory Y assumes the higher-order need dominate individuals. McGregor himself held to the belief that Theory Y assumptions were more valid than Theory X .Therefore; he proposed ideas such as participative decision making, responsible and challenging jobs and good group relations as approaches that would maximize an employee’s job motivation.

MASLOWS NEED HIERARCHY

A.H Maslow, a famous social scientist, has given a frame work that helps to explain the strength of certain needs. According to him, there seems to be a hierarchy in to which human needs are arranged.

1. Physiological includes hunger, thirst, shelter, sex and other bodily needs.2. Safety includes security and protection form physical and emotional harm.3. Social includes affection, belongingness, acceptance, and friendship.4. Esteem includes internal esteem factors such as self-respect, autonomy, and achievement: and external esteem factory such as status, recognition, and attention5. Self- actualization the drive to become what one is capable of becoming; includes growth, achieving one’s potential, and self-fulfillment.

 

6. Discuss the nature, purpose, merits and demerits of management in detail.

“Management is the process of designing and maintaining of an environment in which individuals working together in groups efficiently accomplish selected aims”.

“Management is the art of getting things through and with people in formally organized groups”.

Nature Multidisciplinary Dynamic principles Relative not absolute principles Management – science or art Management as profession and Universality of management

Purpose Increase efficiency Crystallize the nature of management Train and develop managers Influence human behaviour Improve research Attain social objectives

Merits

Demerits

Management is a process involving planning, organizing, staffing, directing and

controlling human efforts to achieve stated objective in an organization.

7. Explain the importance of management in today’s dynamic business world.Management is defined for conceptual, theoretical and analytical purposes asthat process by which managers direct, maintain and operate purposiveorganizations through systematic, coordinated, cooperative human efforts.Management is a process involving planning, organizing, staffing, directing andcontrolling human efforts to achieve stated objective in an organization.

Importance of managementKey elements/functions in managementRole of management in business – application in functional areas of production,marketing, Human resources, Finance and Information system. Management is a process involving planning, organizing, staffing, directing andcontrolling human efforts to achieve stated objective in an organization.

 

8. Differentiate between Management and Administration with suitable examples.Management is simply the process of decision-making and control over the action ofhuman beings for the expressed purpose of attaining pre-determined goals.Management is a process of organized activities. It involves working with people andgetting organizational objectives achieved through them. It tries to make effectiveutilization of various resources.

Administration is that phase of a business enterprise that concerns itself with theoverall determination of institutional objectives and the policies necessary to befollowed in achieving these objectives. Administration plans and stabilizes the broadlines or principles which will govern action.

Basis of differences between Management and Administration Level in organization Major focus Nature of functions Scope of functions Factors affecting decisions Employer-employee relation Qualities required

Merits

DemeritsThe basic point of controversy between management and administration lies in termsof coverage of activities. Various views expressed in this regard have led to theemergence of three approaches namely- Administration is above management;Administration is a part of management and Management and Administration are

same. Everyone performs all managerial functions, only relative importance of thesefunctions varies.

 

9. Outline the various forms of Business organizations.Ownership of business is represented by the right of an individual or a group ofindividuals to acquire legal title to assets for the purpose of controlling them and toenjoy gains or profits from such possession and use.

Definition of Business

Definition of Business organization

A Business organization comes into existence when there are a number of persons in communication and relationship to each other and are willing to contribute towards a common objective.

Classification of business organizations

The classification of Business Organizations is:

* Sole proprietorship concern* Partnership concern* Joint Stock Companies- Private Limited Company- Public Limited Company* Co-operative societies* Public and Private Sector Companies.

Features of each business organization

Merits and Demerits

Every business organization has its own advantages and disadvantages dependingupon its features. In choosing a particular form of organization, an entrepreneur willtry to find out how far his requirements will be met by a particular form of organization.

 

10. Differentiate between a public and a private limited company.The increased needs of modern industry and commerce could not be met by soleproprietorships or partnerships. It was the joint stock type of organization whichfacilitated the full utilization of the technical and other innovations brought in by theindustrial revolution. The Joint Stock Company is an artificial person created forcarrying on some business by an association of persons. It is recognized by law, with

a distinct name, a common seal, a common capital comprising transferable shares offixed value carrying limited liability, and having a perpetual succession.

Definition of Private and Public company

Compare and contrast private and public company featuresThe company form of organization is best suited to those lines of business activitywhich require huge capital outlay and maximum stability. This type of businessorganization dominates the world of industry, commerce and finance today. 

11. Discuss the merits and demerits of various types of organization.Ownership of business is represented by the right of an individual or a group ofindividuals to acquire legal title to assets for the purpose of controlling them and toenjoy gains or profits from such possession and use.

Definition of business

Classification of business organization

The classification of Business Organizations is:* Sole proprietorship concern* Partnership concern* Joint Stock Companies- Private Limited Company- Public Limited Company* Co-operative societies* Public and Private Sector Companies

Merits and demerits of all 5 types of business organizationsEvery business organization has its own advantages and disadvantages dependingupon its features. In choosing a particular form of organization, an entrepreneur willtry to find out how far his requirements will be met by a particular form of organization.

 

12. Explain Public sector and Private sector enterprises with reference to Indian Companies?Ownership of business is represented by the right of an individual or a group ofindividuals to acquire legal title to assets for the purpose of controlling them and toenjoy gains or profits from such possession and use.

Definition of Business, Public sector and Private sector units

Characteristics/features

Advantages and disadvantages of Public and private sector companies

Examples of Indian companiesPublic sector – SAIL, NLC, NTPC, Indian Airlines, etc.Private sector – Tata Steel, Mahindra&Mahindra, Reliance Industries, Jet Airways, etc.

Every business organization has its own advantages and disadvantages dependingupon its features. The public and private sector units are usually large scale industrieswhich nurture the needs of people like power, aviation and so on.

 

13. Explain the recent developments in modern management theory.Management is defined for conceptual, theoretical and analytical purposes asthat process by which managers direct, maintain and operate purposiveorganizations through systematic, coordinated, cooperative human efforts.Management is a process involving planning, organizing, staffing, directing andcontrolling human efforts to achieve stated objective in an organization.

System theory of management

Features of system theory

Contingency / situational approach of management

Critical evaluationSystems approach came in a big way in managerial analysis and raised the hope ofbecoming a general and unified theory of management. In contingency approachmanagers should not ignore the importance of taking actions according to the needsof the situations.

 

14. Discuss the contributions of Hawthorne experiments in the development of managerial thinking.

ELTON MAYO and his associates greatly contributed to the human relations approach and MAYO is rightly called as “The Father of Human Relations Movement”. Elton Mayo conducted a few experiments to find out factors that could increase productivity. These experiments were called ‘THE HAWTHORNE EXPERIMENTS’.

The following were the experiments:-• Illumination experiments• Bank wiring experiments• Relay assembly room experiments• Mass interviewing experiments

 CONTRIBUTIONS• Human relations Approach• Non economic awards• Social man• Organization as a social system

LIMITATIONS• Criticized for lack of scientific and vigorous research• Experiments were too narrow to warrant generalizations. 

15. What are the various environmental factors that a manager should consider in an organization?Environment is a collectivity of all factors within the control of individual businessand beyond the control of individual business. Environment includes all theconditions, circumstances, and influences surrounding the total organization or any ofits part. The environment may be• External and• Internal

 EXTERNAL ENVIRONMENT

It greatly influences the working of every business. Its major components are:• Economic- capital, labour, suppliers, consumers and customers• Technological • Social • Political • Ethical

INTERNAL ENVIRONMENTIt is considered with the day to day work of the various departments of anorganization. They may be

• Financial aspects • HR policies and procedures • Production activities • Marketing and selling activities • Information system

The environmental forces may affect different parts of the organization in differentways because different parts interact with their relevant external environmentdifferently. The impact of environmental forces on the organizations is not unilateralbut the organizations may also affect the environment. So the organizations musteither adjust to the environment or perish. 

16. What are the challenges before Indian Managers?

Every business has to cope up with the external environments prevailing at differenttimes. This environment provides a set of outside challenges faced by the modernIndian managers.

INFORMATION TECHNOLOGY• Revolution of IT (Computers, Internet, telecom,…)• Proper training of employees required• Managers must be aware of the opportunities and threats posed tothe organization by the updated technology revolution.

GLOBALISATION OF ECONOMY• Communication revolution brought world closer• Opening of Indian markets in MNCs• Planning of business strategies keeping in view the world economy.

INTELLECTUAL CAPITAL• Principal assets of modern organization lie in the minds of workers than machinery• To capture and use the knowledge of workers that is an asset.NEWER ORGANOZATIONAL DESIGNSCHANGING JOB PROFILECHANGING WORKFORCE PROFILEINCREASING ROLE OF WOMEN EMPLOYEESEMPHASIS ON KNOWLEDGE MANAGEMENT

In order to face the challenges that have been posed or likely to be posed, managershave to change their practices which they have used to adopt in pre-liberalised era. 

17. What do you mean by social responsibilities of Managers?A manager has to work not only for the betterment of the organization, but also workfor the society’s betterment. The society awakened and vocal by the urgency of socialproblems, is asking managers what they are doing to discharge their socialresponsibilities. The major components to be considered in the context of socialresponsibilities are given as follows:

• Social responsibility and social responsiveness• Arguments against business involvement in social actions.• Reaction and proaction • Role of government • Influence of values and performance criteria on behavior • Social audit

 Thus considering the above mentioned factors a manager should maintain abalance between the organization ‘s as well as society’s welfare and growth.

18. Is Management a profession? Discuss.Profession has a dictionary meaning as “Calling in which one professes to haveacquired specialized knowledge, which is used either in instructing, guiding or

advicing others”. Profession is a vocation requiring some significant body ofknowledge that is applied with high degree of consistency in service of somerelevant segment of society.The following are the list of attributes of a profession and let us see if managementsatisfies these criteria.

 • Body of specialized knowledge and techniques - YES• Formalized methods of acquiring training and experience - YES• Establishment of professional associations - NO• Code of conduct - NO• Priority of service over economy - YES

Since some of the attributes of a profession is satisfied by a management and someare not we can say “MANAGEMENT IS NOT YET A FULL FLEDGEDPROFESSION”.

19. Discuss the main characteristics of an effective manager.

A manager should undertake a number of functions from planning to controlling. Hehas to take decisions for every type of activity. The decisions of manager ofmanager influence the working of an organization. The main qualities of an effectivemanager are:• Education • Intelligence • Leadership • Training • Technical knowledge • Maturity• Positive attitude • Self confidence • Foresight Thus we can conclude that business, since it is prone to risks, a manager isexpected to possess “ Positive thinking without which progress in business becomesnext to impossibility.

 

20. Discuss whether Management is an Art or Science.Management is the process of designing and maintaining an environment in whichindividuals working together in groups, effectively accomplish selected aims.

MANAGEMENT AS AN ARTManagement is the art of getting things done from people. It has the followingfeatures that makes it an art.An art is often regarded as the systematic application of skill or knowledge ineffective accomplishment of results.

The following features makes management an art:-• Creative• Individual approach• Application and dedication

• Initiative• IntelligenceA science is a systematized body of knowledge acquired by mankind through.observation and experimentation. Management also involves a systematic approachtowards designing and maintaining an environment in which individuals worktogether in groups to effectively accomplish selected aims. The following featuresmakes management a science:-• Systematic decision making• Universal management process• Situational output• Universally accepted management.

As management fulfills both the features of art and science it can be called both asan art and science. 

21. Who are the different partners in partnership concerns? Discuss features, merits and demerits.A partnership concern is an association of 2 or more persons to carry on businessand to share its profits and losses. In sole proprietorship financial resources andmanagement skills are limited. One man cannot supervise personally all thebusiness activities.

TYPES OF PARTNERS• Active Partner• Stepping Partner• Normal Partner• Partner in profit only• Partner by stopper• Sub-Partner• Secret Partner• Minor as Partner.

FEATURES OF PARTNERSHIP• Agreement• Multiplicity of person• Unlimited liability• Registration• Common management• Utmost good faith• Lawful business• Sharing of profit• Contractual relations• Mutual agency. 

ADVANTAGES OF PARTNERSHIP• Easy to form• Registration not compulsory• Larger financial resources• Greater management talent• Prompters in decision making• Risk of business shared by more persons• More possibility of growth and expansion of business• There can be any change in managerial setup capital and scale of operations• Easy dissolution. 

LIMITATIONS OF PARTNERSHIP• Unlimited liability increases dissolution of firm• Lack of harmony among partners• Lack of public faith• Limited resources• Limitation of transfer of share. 

22. Give the overall view of functional areas of management.Management is the process of designing and maintaining an environment in whichindividuals working together in groups, effectively accomplish selected aims.Management is required to achieve business objectives. In order to reach variousgoals managerial activities are divided into various functions. The main operatingunits of an undertaking are generally– purchase, sales and storage. So managementprocess will require undertaking of certain functions.

The eight functional areas of management are:• Production management• Development management• Material management• Personnel management• Financial management• Marketing management• Purchasing management• Office management.

23. Discuss Bureaucratic theory in detail.MAX WEBER, a German sociologist who was a teacher at Berlin University was achief exponent of bureaucratic model. It was a rational approach wherein specificobjectives of organization are laid down are organization is designed to achievethem and it is legal because authority stemmed from a clear defined set of rules,procedures and functions.

Features

• A clear separation between superior and subordinate• Division of labour based on competence and functional specialization• Clear divorce between personnel and official matters• System of rules, regulations, procedures• There is hierarchy in positions based on legal authority andpower.

Merits

DemeritsBureaucratic structure can work well when the environment is highly static andpredictable. In dynamic environment, more interaction between organization andenvironment is required. There is high need for information monitoring andprocessing.

 

24. Discuss Quantitative/Mathematical or Operations theory in detail.Management is the process of designing and maintaining an environment inwhich individuals working together in groups, effectively accomplish selectedaims. Many theories were put forward to understand what management is, whatmanagement theory is and how managerial events should be analyzed. We aregoing to discuss 2 theories out of it, the mathematical approach and the operationtheory.

MATHEMATICAL APPROACHThis is one of the approaches of management. This theory lays emphasis on logicalthinking and rational decision-making. Thus this theory gives tools for rationaldecision-making and also formulae.

Features• Mathematical processes, concepts, symbols and models• Makes management purely a logical process• Expressed as mathematical symbols and relations.

Limitations• Preoccupation with mathematical models• Many aspects in management cannot be modeled• It is hardly a school to management.

OPERATIONAL APPROACHIt is one of the approaches in management that emphasizes adoption of techniquesand knowledge from other fields and approaches.

Features

• Draws together concepts, principles, techniques and knowledge from other fields and managerial approaches• Distinguishes managerial and non-managerial knowledge.• Develops classification system built around the managerial

functions.

Limitations

• Does not identify “representing” or “coordination” as a separatefunction.

The mathematical and operational approaches paved way for better analysis ofsituations by building models. These approaches helped managers in decision-making processes.

25. Explain systems approach and contingency approach in detail.

Management is the process of designing and maintaining an environment inwhich individuals working together in groups, effectively accomplish selectedaims. Many theories were put forward to understand what management is, whatmanagement theory is and how managerial events should be analyzed. Let usdiscuss the systems approach and contingency approach out of it.

SYSTEMS APPROACHA system view point may provide the important criteria to unify managementTheory. It treats various approaches such as process, quantitative and behavioralall as one theory of management.

Features• Broad applicability• Inspite of boundaries they interact with external environment• Recognizes importance of studying interrelations of planning,organizing, controlling.

Limitations• It can hardly be considered as a new approach in management.

CONTINGENCY APPROACHIt is also called as the situational approach. It is based on basic premises that thereis no one best way to handle any management problem.

Features• Managerial practice depends on circumstances.• Recognizes influence of given solutions on organizationalbehaviour patterns.

Limitations• Difficulty in determining all relevant contingency factors and showing their relations• Very complex.

Systems approach came in a big way in managerial analysis and raised the hope ofbecoming a general and unified theory of management. In contingency approachmanagers should not ignore the importance of taking actions according to the needsof the situations.