VELAMMAL INSTITUTE OF TECHNOLOGY, PANCHETTI, CHENNAI
B.E. / B.TECH PROGRAMME
SUBJECT CODE : MG 1351
SUBJECT : PRINCIPLES OF MANAGEMENT
CLASS / SEMESTER : III YEAR / VI SEM
UNIT - 1 HISTORICAL DEVELOPMENT
PART - A
- Define Management.
“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”.
Ex: Human Resource Management, Financial Management.
- Is Management - an art or science?
Management is the art of getting things done from people. It has the following features that make it an art.
· Creative
· Individual approach
· Application and dedication
· Initiative and
· Intelligence.
Management also involves a systematic approach towards designing and maintaining
an environment in which individuals work together in groups to effectively
accomplish selected aims. The following features make it a science.
· Systematic decision making
· Universal management process
· Situational output and
· Universally accepted management.
Thus management can be called both as an art and science.
- Give some features of Management.
Management is the process of designing and maintaining an environment in which individuals working together in groups effectively accomplish selected aims.
The features of Management include:-
· Purposeful and goal oriented
· Dynamic
· Multidisciplinary
· Jobs accomplished by others
· Associated with groups
· Intangible
· Continuous process and
· It is aided but not replaced by computers.
- What are the essential skills of Managers?
Skill refers to expertness, practical ability, or facility in an action or doing something.
The major skills required or expected out of managers are:-
· Technical skills – Pertaining to knowledge and proficiency in activities involving methods and procedures;
· Human skills – Ability to work effectively with other persons and to build up cooperative group relations to accomplish organizational objectives;
· Conceptual skills – Ability to recognize significant elements in a situation; and to understand the relationship among those elements; and
· Design skills – Ability to solve problems in ways that will benefit the enterprise.
- Define Scientific Management.
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”.
- List the principles of Scientific Management.
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 principles of Scientific Management are:-
Ø Separation of planning and working
Ø Functional foremanship
Ø Job analyzers
· Time study
· Motion study
· Fatigue study
Ø Standardization
Ø Scientific selection of training
Ø Financial incentives and
Ø Economy and mental revolution.
- What is the ‘Rule of the Thumb’?
Traditionally a rule was used in management that laid emphasis on estimation rather than precision. Prior to scientific management, skilled craftsmen who had learned their jobs in lengthy apprenticeships performed work. They made their own decisions about how their job was to be performed. This is known as the ‘Rule of the thumb’.
It lays emphasis on estimating a situation’s solution. This rule was replaced by F.W Taylor’s rule of Scientific Management.
- List the contributions of Fayol towards Management.
Henry Fayol is a French industrialist whose contributions are termed as operational management or administrative management. He followed ‘The Classical Approach’ to the evolution of management thought. His contributions are given as follows:-
Ø Grouping of activities of an industrial organization into six groups, namely- Technical, commercial, financial, security, accounting and managerial;
Ø Identified six types of qualities of a manager are- Physical, mental, moral,
educational, technical and experience;
Ø Fourteen principles of Management namely- Division of Work, Authority and responsibility and so on; and
Ø Five elements/functions of management- Planning, organizing, commanding, coordinating and controlling.
- What do you mean by ‘Scalar Chain’?
‘Scalar Chain’ is the number of different levels of authority through which decisions are passed in the organization. It suggests that each communication going up or coming down must flow through each position in the line of authority. The scalar chain of command of reporting relationships from top executive to the ordinary shop operative or driver needs to be sensible, clear and understood. The same levels of hierarchical positioned people in different departments of an Organization communicate with each other by establishing a plank.
- What do you mean by “Espirit de Corps”?
Henri Fayol emphasized the need for building and maintaining of harmony among the work force, team work and sound interpersonal relationships which is ‘Esprit de corps’. It is one of the 14 principles of management laid by Fayol. It is a French word that means “Feelings of harmony and union among personnel”. Union is strength is what this phrase directly implies. It emphasizes that all employees should cooperate and coordinate with each other, which is very essential for the organization’s growth.
- What are the various levels of Management?
Management is the process of designing and maintaining an environment in which individuals working together in groups effectively accomplish selected aims. The basic three levels of management are:-
· Top level management (Features: Decision-making, Policy formulation, etc.
Positions held: Board of Directors, Managing
Director, CEOs, COOs, etc.)
· Middle level management (Features: Staffing, Directing, etc.
Positions held: Finance manager, Marketing
manager, Production manager, etc.)
· Low level management (Features: Implementing, Time scheduling, etc.
Positions held: Supervisors, Foremen, etc.)
- What are the roles played by a Manager?
Role is defined as the pattern of behaviour which is defined for different positions. A manager in an organization has different tasks to be accomplished. His functions in an organization are not restricted to one area. He has different contexts of managing which are said to be different roles played by him. Managerial roles depend on the formal authority which is delegated to the manager in an organization. The following are his roles:-
| INTERPERSONAL ROLES | INFORMATIONAL ROLES | DECISIONAL ROLES |
| (i) Figurehead | (i) Recipient | (i) Entrepreneurial |
| (ii) Leader | (ii) Dissemination | (ii) Disturbance handler |
| (iii) Liaison | (iii) Spokesperson | (iii)Resource allocator |
| | | (iv) Negotiator |
13. What are the functions of management?
“Management is the art of securing maximum results with minimum effort so as to secure maximum prosperity and happiness for both employer and employee and give the public the best possible service”.
The functions of Management are:
* Planning – conscious determination of future course of action.
* Organizing – process of dividing work into convenient tasks or duties.
* Staffing – manning of the various positions created by the organization.
* Directing – includes communicating, motivating and leading.
* Controlling – involves comparison of actual results with expected results as
set by the planning process.
14. What is the classification of Business organizations?
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. 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.
15. Define ‘Sole proprietorship’.
A Business unit that is owned and controlled by a single individual is known as a sole trading or sole proprietorship concern. He uses his own savings for running the business. The sole trader makes all purchases and sells on his own and maintains all the accounts. He alone enjoys all the profits and bears all the losses.
Ex: A Fancy store.
16. What do you mean by a ‘Partnership firm’?
A partnership is an association of two or more persons to carry on business and to share its profit and losses. The relation of a partnership arises from contract. The maximum number of partners is limited to 10 in the case of banking business and 20 in the case of other business.
Ex: Chand & Co.
17. What do you understand by the term ‘Joint Stock Company’?
“By a Company we mean an association of many persons who contribute money or money’s worth to a common stock and employs it in some trade or business and also shares the profit and loss as the case may be arising there from”.
There are two types of Joint stock companies:-
* Private Limited company – Ex: M/s Key Media Pvt. Ltd.
* Public Limited company – Ex: M/s Pearl credits Ltd.
18. Who is (i) an active partner (ii) a sleeping partner?
Active partner: Any partner who is authorized by others to manage the business is known as active partner.
Sleeping partner: Any partner who does not express his intention to participate in the business can be called as a sleeping partner. He will be just an investor who has a right to share profits.
19. What is a Co-operative Enterprise?
A Co-operative enterprise is a voluntary association of persons for mutual benefit and its aims are accomplished through self-help and collective effort. It may be described as a protective device used by the relatively less strong sections of society to safeguard their economic interests in the face of exploitation by producers and sellers working solely for maximizing profits.
Ex: AAVIN Milk Federation Cooperative Society.
20. What is a Private limited company?
A Private limited company is a company which has a minimum paid up capital as may be prescribed. It can be incorporated with just two persons. It can have a maximum of 50 members. It cannot go in for a public issue. It restricts the transfer of its shares. It is particularly suitable for industrial ventures which can get many concessions in respect of income tax.
Ex: M/s Key Media Pvt. Ltd.
21. What is a Public limited company?
A Public limited company should have a minimum of 7 members and the maximum limit is unlimited. It can issue shares to the Public. The financial statement should be sent to all the members and to the Registrar of Companies. The shares of a public limited company can be transferred by the members to the others without any restriction by the company. Such transfers are made through organized markets called ‘stock markets’ or ‘stock exchanges’.
Ex: M/s Pearl credits Ltd.
22. What is a Public sector Enterprise?
Public enterprise or State enterprise is an undertaking owned and controlled by the local or state or central government. They are financed and managed by the government. They are started with a service motive.
Ex: NLC Ltd.
23. What is a Public Corporation?
A Public corporation is an autonomous body corporate created by a special statute of a state or central government. A public corporation is a separate legal entity created for a specific purpose.
Ex: LIC.
24. What is social responsibility?
“By Social Responsibility, we mean the intelligent and objective concern for the welfare of society that restrains individual and corporate behaviour from ultimately destructive activities, no matter how immediately profitable, and leads in the direction of positive contributions to human betterment, variously as the latter may be defined”.
25. What are Values?
Values are defined as global beliefs that guide actions and judgements across a variety of situations. Human values are the core of ethical or unethical behaviour. Values represent basic convictions that a specific mode of conduct is personally socially preferable to an opposite mode of conduct.
PART- B
1. Trace the evolution of management with reference to the contributions made
by management thinkers.
Management is defined for conceptual, theoretical and analytical purposes as
that process by which managers direct, maintain and operate purposive
organizations through systematic, coordinated, cooperative human efforts.
Management is a process involving planning, organizing, staffing, directing and
controlling 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 to
stimulate to study management as a distinct discipline. However their ideas created an
awareness 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:-
Ø Separation of planning and working
Ø Functional foremanship
Ø Job analyzers
· Time study or Work measurement
· Method study
· Motion study
· Fatigue study
Ø Standardization
Ø Scientific selection of training
Ø Financial incentives
Ø Economy and
Ø Mental revolution.
Role of scientific management in the modern era
Ø Paved way for progress in productivity
Ø Employee-Employer relationship to be harmonious
Ø Training & Development is the necessity of the hour
Ø Elimination of wastes through quality management is a control measure
Ø 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:
Ø Replacing Rule of thumb with science
Ø Harmony in group action
Ø Cooperation
Ø Maximum output and
Ø Development of workers.
The Features of Scientific Management are:-
Ø Separation of planning and working
Ø Functional foremanship
Ø Job analyzers
· Time study or Work measurement
· Method study
· Motion study
· Fatigue study
Ø Standardization
Ø Scientific selection of training
Ø Financial incentives
Ø Economy and
Ø Mental revolution.
Benefits of scientific management
Taylor’s scientific management is more relevant to mechanization and automation-
technical aspect of efficiency- than the broader aspects of management of an
organization. It created awareness about operational efficiency at the shop floor level
than 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’; the
six activities of an industrial organization namely, technical, commercial, financial
security, 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 management
elements. These principles are flexible and capable of being adopted to every need. It
is a matter of knowing how to use each of them which is a difficult art requiring
intelligence, experience and proportion.
5. Explain the contributions of Abraham Maslow and McGregor.
Motivation is one of the most important factors affecting human behavior and
performance. This is the reason why managers attach great importance to motivation
in organization setting. ‘Motivation represents an unsatisfied need which creates a
state of tension or disequilibrium, causing the individual to move in a goal directed
pattern towards restoring a state of equilibrium by satisfying the need’.
THEORY X AND THEORY Y
Douglas McGregor proposed two distinct views of human beings: on basically
negative, labeled Theory X, and other basically positive, labeled Theory Y. After
viewing the way in which mangers dealt with employees, McGregor conclude that a
managers view of the nature of human being is based on a certain grouping of
assumptions and that he or she tends to mold his or her behavior toward employees
according to these assumptions.
Under Theory X, the four assumptions held by mangers are:
- Employees inherently dislike work and, whenever possible, will attempt to avoid it.
- Since employees dislike work, they must be coerced, controlled or threatened with punishment to achieve goals.
- Employees’ will avoid responsibilities and seek formal direction whenever possible.
- 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 listed
the focus positive assumptions that he called Theory y:
- Employee can view work as being as natural as rest or play.
- people will exercise self –direction and self –control if they are committed to the
objective.
- The average person can learn to accept, even seek, responsibility.
- 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 attention
5. 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
Ø Multidisciplinary
Ø Dynamic principles
Ø Relative not absolute principles
Ø Management – science or art
Ø Management as profession and
Ø Universality of management
Purpose
Ø Increase efficiency
Ø Crystallize the nature of management
Ø Train and develop managers
Ø Influence human behaviour
Ø Improve research
Ø 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 as
that process by which managers direct, maintain and operate purposive
organizations through systematic, coordinated, cooperative human efforts.
Management is a process involving planning, organizing, staffing, directing and
controlling human efforts to achieve stated objective in an organization.
Importance of management
Key elements/functions in management
Role 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 and
controlling 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 of
human beings for the expressed purpose of attaining pre-determined goals.
Management is a process of organized activities. It involves working with people and
getting organizational objectives achieved through them. It tries to make effective
utilization of various resources.
Administration is that phase of a business enterprise that concerns itself with the
overall determination of institutional objectives and the policies necessary to be
followed in achieving these objectives. Administration plans and stabilizes the broad
lines or principles which will govern action.
Basis of differences between Management and Administration
Ø Level in organization
Ø Major focus
Ø Nature of functions
Ø Scope of functions
Ø Factors affecting decisions
Ø Employer-employee relation
Ø Qualities required
Merits
Demerits
The basic point of controversy between management and administration lies in terms
of coverage of activities. Various views expressed in this regard have led to the
emergence 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 these
functions varies.
9. Outline the various forms of Business organizations.
Ownership of business is represented by the right of an individual or a group of
individuals to acquire legal title to assets for the purpose of controlling them and to
enjoy 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 depending
upon its features. In choosing a particular form of organization, an entrepreneur will
try 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 sole
proprietorships or partnerships. It was the joint stock type of organization which
facilitated the full utilization of the technical and other innovations brought in by the
industrial revolution. The Joint Stock Company is an artificial person created for
carrying 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 of
fixed value carrying limited liability, and having a perpetual succession.
Definition of Private and Public company
Compare and contrast private and public company features
The company form of organization is best suited to those lines of business activity
which require huge capital outlay and maximum stability. This type of business
organization 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 of
individuals to acquire legal title to assets for the purpose of controlling them and to
enjoy 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 organizations
Every business organization has its own advantages and disadvantages depending
upon its features. In choosing a particular form of organization, an entrepreneur will
try 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 of
individuals to acquire legal title to assets for the purpose of controlling them and to
enjoy 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 companies
Public 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 depending
upon its features. The public and private sector units are usually large scale industries
which 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 as
that process by which managers direct, maintain and operate purposive
organizations through systematic, coordinated, cooperative human efforts.
Management is a process involving planning, organizing, staffing, directing and
controlling human efforts to achieve stated objective in an organization.
System theory of management
Features of system theory
Contingency / situational approach of management
Critical evaluation
Systems approach came in a big way in managerial analysis and raised the hope of
becoming a general and unified theory of management. In contingency approach
managers should not ignore the importance of taking actions according to the needs
of 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 business
and beyond the control of individual business. Environment includes all the
conditions, circumstances, and influences surrounding the total organization or any of
its 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 ENVIRONMENT
It is considered with the day to day work of the various departments of an
organization. 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 different
ways because different parts interact with their relevant external environment
differently. The impact of environmental forces on the organizations is not unilateral
but the organizations may also affect the environment. So the organizations must
either 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 different
times. This environment provides a set of outside challenges faced by the modern
Indian managers.
INFORMATION TECHNOLOGY
· Revolution of IT (Computers, Internet, telecom,…)
· Proper training of employees required
· Managers must be aware of the opportunities and threats posed to
the 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 DESIGNS
CHANGING JOB PROFILE
CHANGING WORKFORCE PROFILE
INCREASING ROLE OF WOMEN EMPLOYEES
EMPHASIS ON KNOWLEDGE MANAGEMENT
In order to face the challenges that have been posed or likely to be posed, managers
have 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 work
for the society’s betterment. The society awakened and vocal by the urgency of social
problems, is asking managers what they are doing to discharge their social
responsibilities. The major components to be considered in the context of social
responsibilities 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 a
balance 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 have
acquired specialized knowledge, which is used either in instructing, guiding or
advicing others”. Profession is a vocation requiring some significant body of
knowledge that is applied with high degree of consistency in service of some
relevant segment of society.
The following are the list of attributes of a profession and let us see if management
satisfies 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 some
are not we can say “MANAGEMENT IS NOT YET A FULL FLEDGED
PROFESSION”.
19. Discuss the main characteristics of an effective manager.
A manager should undertake a number of functions from planning to controlling. He
has to take decisions for every type of activity. The decisions of manager of
manager influence the working of an organization. The main qualities of an effective
manager 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 is
expected to possess “ Positive thinking without which progress in business becomes
next to impossibility.
20. Discuss whether Management is an Art or Science.
Management is the process of designing and maintaining an environment in which
individuals working together in groups, effectively accomplish selected aims.
MANAGEMENT AS AN ART
Management is the art of getting things done from people. It has the following
features that makes it an art.
An art is often regarded as the systematic application of skill or knowledge in
effective accomplishment of results.
The following features makes management an art:-
· Creative
· Individual approach
· Application and dedication
· Initiative
· Intelligence
A science is a systematized body of knowledge acquired by mankind through.
observation and experimentation. Management also involves a systematic approach
towards designing and maintaining an environment in which individuals work
together in groups to effectively accomplish selected aims. The following features
makes 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 as
an 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 business
and to share its profits and losses. In sole proprietorship financial resources and
management skills are limited. One man cannot supervise personally all the
business 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 which
individuals working together in groups, effectively accomplish selected aims.
Management is required to achieve business objectives. In order to reach various
goals managerial activities are divided into various functions. The main operating
units of an undertaking are generally– purchase, sales and storage. So management
process 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 a
chief exponent of bureaucratic model. It was a rational approach wherein specific
objectives of organization are laid down are organization is designed to achieve
them 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 and
power.
Merits
Demerits
Bureaucratic structure can work well when the environment is highly static and
predictable. In dynamic environment, more interaction between organization and
environment is required. There is high need for information monitoring and
processing.
24. Discuss Quantitative/Mathematical or Operations theory in detail.
Management is the process of designing and maintaining an environment in
which individuals working together in groups, effectively accomplish selected
aims. Many theories were put forward to understand what management is, what
management theory is and how managerial events should be analyzed. We are
going to discuss 2 theories out of it, the mathematical approach and the operation
theory.
MATHEMATICAL APPROACH
This is one of the approaches of management. This theory lays emphasis on logical
thinking and rational decision-making. Thus this theory gives tools for rational
decision-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 APPROACH
It is one of the approaches in management that emphasizes adoption of techniques
and 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 separate
function.
The mathematical and operational approaches paved way for better analysis of
situations 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 in
which individuals working together in groups, effectively accomplish selected
aims. Many theories were put forward to understand what management is, what
management theory is and how managerial events should be analyzed. Let us
discuss the systems approach and contingency approach out of it.
SYSTEMS APPROACH
A system view point may provide the important criteria to unify management
Theory. It treats various approaches such as process, quantitative and behavioral
all 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 APPROACH
It is also called as the situational approach. It is based on basic premises that there
is no one best way to handle any management problem.
Features
· Managerial practice depends on circumstances.
· Recognizes influence of given solutions on organizational
behaviour 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 of
becoming a general and unified theory of management. In contingency approach
managers should not ignore the importance of taking actions according to the needs
of the situations.
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