Unit 1

1. Define Management. Explain its nature and features.

Ans:
Management:-
The word management refers to all the tasks and activities undertaken by the people in an
organization for the successful achievement of goals and targets. It involves continuous
activities such as planning, organizing, leading and monitoring physical, financial and
information resources.

Nature / Features or Characteristics of management:

1. Art as well as science:
Management is both an art and a science. It is an art in the sense of possessing of
managing skill by a person. In another sense management is the science because of
developing certain principles which are applicable in a place where a group of activities
are coordinated
2. Management is an activity:
Management is the process of activity relating to the effective utilization of available resources
for production.
3. Management is a continuous process:
the process of management mainly consists of planning, directing and controlling the
resources. So, management is a continuous process.

4. Management achieving pre-determined objectives:

The objectives of an organization are clearly laid down. Every managerial activity result
in the achievement of objectives fixed well in advance.
5. Organized activities:
Management is a group of organized activities.
6. Management is a factor of production:
The factors of production include land, labour, material, capital and enterprises. These
could not realize the organizations goals. The organization goals are achieved only when
these are effectively co-ordinated by the entrepreneur.
7. Management as a system of activity:
A system may be defined as a set of component parts working as a whole.
8. Management is a discipline:
The boundaries of management are not exact as those of any other physical sciences. It
may be increased by the continuous discovery of many more aspects of business
 enterprises.
9. Decision making:
There are a number of decisions taken by the management every day. The success or
failure of an organization depends upon the degree of right decision taken by the
manager.
10. Leadership Quality:
Leadership quality is developed in the persons who are working in the top-level
management.

2.Explain the functions of management ?

Functions of management:
Scholars in the field of management have their own classification functions of
management. Some scholars add few functions and delete some other functions. The
important functions of management are briefly discussed below.

1. Planning:
Planning is the primary function of management. Nothing can be performed without
planning. In short planning refers to deciding in advance that which will be done in the near
future in the business world the organization should achieve the objectives. In order to
achieve objectives the organization plans what is to be done, when it is to be done, how it is
to be done and by whom it is to be done.
2. Organizing:
Organizing is the distribution of work in group wise for effective performance. Organization
provides all facilities which are necessary to perform the work. According to Henry Fayol
 Organization of two kinds i.e., Organization of human factor and organization of the
material factor.
3. Staffing:
Staffing function comprises the activities of selection and placement of competent personnel. In
other words staffing refers to placement of right persons in the right jobs.
4. Directing:
The actual performance of a work starts with the function of the direction. The direction
deals with making the workers learn techniques to perform the jobs assigned to them.
Direction includes guidance, supervision and motivation of employees.
5. Controlling:
The function of control consists of those activities that are undertaken to ensure that the
events do not deviate from the prearranged plans. The activities consist of establishing
standards for work performance, measuring performance and comparing it to these set
standards and taking corrective actions as and when needed, to correct any deviations.

3. Discuss scientific management?

Taylor’s Scientific Management: The utility of scientific methods to problems of
management was first introduced by F. W. Taylor
Definition: Scientific management may be defined as the “Art of knowing exactly what is to be done
and the best way of doing it”.
Scientific management is the result of applying scientific knowledge and scientific
methods to the various aspects of management and the problems that arise from them.

Principles of Scientific Management:

Taylor through his principles of scientific management initiated a system in which there
would be an effective and fruitful coordination and cooperation between the management and the
workers.

1. Development of Science for each element of work:

 Analyze the work scientifically, rather than using thumb rule. It means that an attempt is made to
find out what is to be done by a particular worker, how he is to do it, what equipment will be
necessary to do it. This information is provided to the worker, so as to reduce wastage of tie,
material etc. and improve the quality work.
2. Scientific selection, placement and training of workers:
This principle states that select the workers best suited to perform the specific task, and then
train them within the industry in order to attain the objectives of the enterprise workers
should also be trained from time to time to keep them informed of latest development in the
techniques of production.
3. Division of Labor:
division of work in smaller tasks and separation of thinking element of job from doing
element of the job, this is the principle of specialization. It is essential for efficiency in all
sphere of activities as well as in supervision Work
4. Standardization of methods, procedures, tools and equipment:
Standardization helps in reducing time, labor and cost of production. The success of scientific
management largely depends upon standardization of system, depends upon standardization of
system, tools, equipment’s and techniques of production
5. Use of time and motion study:
Taylor’s introduced time and motion study to determine standard work. Taylor’s undertook
studies on fatigue, incurred by the workers and the time necessary to complete task.
6. Differential wage system:
Taylor’s differential piece rate scheme provides an incentive for a worker to achieve high level of
optimum output. It distinguishes the more productive workers from less productive workers and
motivates them to produce more.
7. Cooperation between labor and management:
Mutual respect and cooperation between the workers and management helps in providing
proper and effective leadership. The labor starts thinking that it is their work and they must
put their heart in the work assigned to him.
8. Principle of Management by Exception:
Taylor suggested that only major or significant deviations between the actual performance
and standard performance should be brought to the notice of top management. Top
management should pay more attention to those areas of work where standards and
procedures could not be established and where there is a significant variation between
standard performance and actual performance.

4. briefly discuss firewalls 14 principles of management.

It was the reality of Fayol's day-to-day managing, seeing what worked and what didn't.
Fayol tried to understand the organization from top to bottom. that informed his 14 Principles of
Management.

1. Division of work: -
This principle of management is based on the theory that if workers are given a specialized task
to do, they will become skillful and more efficient in it than if they had a broader range of
tasks. Therefore, a process where everyone has a specialized role will be an efficient one.
2. Authority: -
Managers have the authority to tell workers what to do, they must also take responsibility for
the outcomes.
3. Discipline: -
This principle applies that subordinate should respect their superiors and obey their order.
4. Unity of command: -
An employee should receive orders from one supervisor only." Otherwise, authority, discipline,
order, and stability are threatened.
5. Unity of Direction: -
Teams with the same objective should be working under the direction of one manager, using
one plan.
6. Subordination of individual interest to group interest: -
An individual has his own interest. At the same time the organization has its own interest. Here
the interest of the organization is called as group interest. Henry Fayol expected the reconcile
action of the individual interest with group interest.
7. Remuneration of personnel: -
According to Henry Fayol employees should be given fair and reliable remuneration.
Employee should get satisfaction out of their salaries
8. Centralization:
Balancing centralized decision making (from the top) with letting employees make decisions
9. Scalar chain:
According to Henry Fayol scalar chain is the chain of superiors ranging from the ultimate
authority to the lowest rank. The communication flows from top to bottom.
10. Order:
The principle of right place for everything and for everyone should be followed by the
management. It is applied to both material and man. The material should be kept in order in the
place where it is necessary. The personnel are selected scientifically and assigned duties
according to their qualifications and abilities.
11. Equity: -
Managers should be fair to all employees through a "combination of kindliness and justice."
Only then will the team "carry out its duties with... devotion and loyalty."
12. Stability of tenure of personnel:
The security of job is an essential one. Insecurity of job results in the higher labour turnover. It
increases administration expenses.
13. Initiative:
 Employees should be encouraged to develop and carry out plans for improvement. As Fayol
wrote, "At all levels of the organizational ladder, zeal and energy on the part of employees are
augmented by initiative."
14. Esprit de Corps – Organizations should strive to promote team spirit, unity, and morale.

5. explain organizational structures.

What Is an Organizational Structure?

 An organizational structure is a system that outlines how certain activities are directed in order
to achieve the goals of an organization. These activities can include rules, roles, and
responsibilities.

Type of organization: On the basis of authority relationships organization classified as

follows
1. Line organization or Military organization or Scalar organization
2. Functional organization
3. Line and Staff organization
4. Project organization
5. Committee organization
6. Matrix organization

Line organization:
Where efforts of large number of people have to be controlled and
discipline is of prime importance line type organization structure will serve the purpose. This
is also one of the oldest structures. However, in present conditions this type of structure has
lost the applicability. In line structure ten lines of instruction, directing is vertical. This means
in this type boss is always right and his orders are to be obeyed at any cost.
Merits:
Simplicity:
Discipline
Co-ordination:
Effective communication:
Economical:
Unity of command
Prompt decision:
Over all development of the managers:

Demerits:
Undue reliance:
Personnel limitations:
Overload of work:
Dictatorial way:
Duplication of work:
Unsuitable for large concerns
 General interest of enterprise may be over looked:
Scope of favourism:

Functional organization: This structure most widely used, in the medium and large
organizations having limited number of products.
This was introduced by F.W.Taylor and is logical extension of the division of labour cover
departments as well as men. In this authority is delegated to an individual or department to
control specified processes, policies or other matter relating to activities under taken by persons
in other departments.
In this system planning is separated from performance since the direction of work is divided by
various function in the factory. It has been found that this type of structure becomes ineffective
when the work of departments and individuals increases in variety and complexity.

Merits:
Separation of work:
Specialization:
Narrow range with high depth:
Ease in selection and training:
Reduction in prime cost:
Scope of growth and development of business:

Demerits:
Indispline:
Shifting of responsibility:
Kills the initiative of workers:
Overlapping of authority:
Lack of co-ordination between functions:

Line and Staff Organization: Line and Staff organization is the in which the line heads are
assisted by specialist staff. If the firm is of large size, manager cannot give careful attention to
every aspect of management. They are busy with ordinary task of production and selling. Hence
staff is deputed to do the work of investigation, research, recording, and advising to managers.
Thus the staff brings advising to managers. Thus the staff brings specialization by assisting the line
officers.

Merits:
Planned specialization:
Quality decisions:
Prospect for personal growth:
Less wastage:
Training ground for personnel:

Demerits:
Chances of Misinterpretation:
Chances of friction:
Ineffective Staff in the absence of authority:
Expensive:
 Loss of initiative by line executives:

Project Organization: A project organization is a special case where common service like
finance, purchase etc. are organized at the functional level. But project resources are allocated to
the project manager. Since the business responsibility rests with the project manager, necessary
authority is given to him with the requisite resources. This type of organization structure helps in
making decisions for project control in terms of cost, resource and time. In a project organization
some of the functions are corporate responsibility and some of them are project manager’s
responsibility.

Merits:
1. This calls for quick divisions
2. Organizing all functional
3. Proper coordination of work of different departments

Demerits:
1. It tends to increase the problems of control for top management
2. It is special case of product organization
3. The organization may get disintegrated with increasing focus on
departments

Committee Organization: A committee is formed when two or more persons are appointed to
work as a team to arrive at a decision on the matters referred to it. It is intended to utilize the
knowledge, skills, and experiences of all the concerned parties. Particularly, in large
organizations, problems are too big to be handled by one single expert.

Merits:
1. It pools up the organizational resources in terms of knowledge skills and experiences.
2. It represents all interested groups and thus, facilitates group decision.
3. It yields good results if the committee are headed by taskmaster like
chairman and time bound in terms of decision-making.
4. It minimizes the fear of too much authority vested in one person
5. It motivates all the concerned or effected groups to participate.

Demerits:
1. Responsibility of decisions cannot be fixed on a particular person.
2. It calls for high degree of coordination.
3. It involved high cost in terms of time and money.
Matrix Organization: This is also called as project orgnisation it is a combination of all
relationships in the organization in vertical, horizontal and diagonal. It is mostly used in
complex projects. It provides a high degree of operational freedom, flexibility and adoptability
for both the line and staff managers in performing their respective roles. The main objective of
matrix organization is to secure a higher degree of coordination than what is possible from the
conventional organizational structure as the line and staff.

Merits:
1. It offers operational freedom and flexibility
2. It seeks to optimize the utilization of resources
3. It focuses on results
4. It maintains professional identity
5. It holds employees responsible for management of resources

Demerits:
1. It calls for greater degree of coordination
2. It violates unity of command principle
3. It may be difficult to define authority and responsibility precisely
4. Employees may find it frustrating to work with two bosses
6. Explain the concept of social responsibility.
Social Responsibility of Management:
Social responsibility refers to the process with includes several activities from providing safe products
and services to giving apportion of the company’s profits to welfare organizations.
Responsibility towards shareholders: The business enterprise has the responsibility to
provide fair return on capital to the shareholders. The firm must provide them regular, accurate,
and full information about the working of enterprise in order to fulfill and encourage their
interest in the affairs of the company.
Responsibility towards consumers: The management has to provide quality products and
services to the customers at reasonable prices. It should consider customer suggestions and also
plan it services more effectively through consumer satisfaction survey.

Responsibility towards employees: Good working conditions motivate workers to contribute

their best it is the responsibility of the management recognize their unions and respect their right
to associate with a union of their choices.
Responsibility towards creditors: The business has to repay the loans it has taken from the
financial institutions as per the repayment schedule also it should inform the creditors about the
developments in the company from time-to-time.
Responsibility towards Government: The business firm has to pay its taxes and be fair in its
endeavours. It should also support the government in community development projects.
Responsibility towards competitors: The business firm should always maintain the highest
ethical standards and maintain cordial relations with each of the competitors, which is a critical
and sensitive segment.
Responsibility towards public: Business units have tremendous responsibility towards the
general public to support the cause of community development. Most of the companies maintain
public relations departments exclusively to maintain good relations with the community.