UNIT-I

INTRODUCTION TO MANAGEMENT
Management is a universal phenomenon. It is a very popular and widely used term. All
organizations - business, political, cultural or social are involved in management because it is the
management which helps and directs the various efforts towards a definite purpose. According to
Harold Koontz, Management is an art of getting things done through and with the people in formally
organized groups. It is an art of creating an environment in which people can perform and individuals
and can co-operate towards attainment of group goals. According to F.W. Taylor, Management is an art
of knowing what to do, when to do and see that it is done in the best and cheapest way.
Management is a purposive activity. It is something that directs group efforts towards the
attainment of certain pre - determined goals. It is the process of working with and through others to
effectively achieve the goals of the organization, by efficiently using limited resources in the changing
world. Of course, these goals may vary from one enterprise to another. E.g.: For one enterprise it may be
launching of new products by conducting market surveys and for other it may be profit maximization by
minimizing cost.
Management involves creating an internal environment: - It is the management which puts into use the
various factors of production. Therefore, it is the responsibility of management to create such conditions
which are conducive to maximum efforts so that people are able to perform their task efficiently and
effectively. It includes ensuring availability of raw materials, determination of wages and salaries,
formulation of rules & regulations etc.
Therefore, we can say that good management includes both being effective and efficient. Being effective
means doing the appropriate task i.e, fitting the square pegs in square holes and round pegs in round
holes. Being efficient means doing the task correctly, at least possible cost with minimum wastage of
resources.
Management can be defined in detail in following categories :
1. Management as a Process
2. Management as an Activity
3. Management as a Discipline
4. Management as a Group
5. Management as a Science
6. Management as an Art
7. Management as a Profession
Management as a Process
As a process, management refers to a series of inter - related functions. It is the process by which
management creates, operates and directs purposive organization through systematic, coordinated and
co-operated human efforts, according to George R. Terry, Management is a distinct process consisting
of planning, organizing, actuating and controlling, performed to determine and accomplish stated
objective by the use of human beings and other resources. As a process, management consists of three
aspects:
1. Management is a social process - Since human factor is most important among the other
factors, therefore management is concerned with developing relationship among people. It is the
duty of management to make interaction between people - productive and useful for obtaining
organizational goals.
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2. Management is an integrating process - Management undertakes the job of bringing together

human physical and financial resources so as to achieve organizational purpose. Therefore, is an
important function to bring harmony between various factors.
3. Management is a continuous process - It is a never ending process. It is concerned with
constantly identifying the problem and solving them by taking adequate steps. It is an on-going
process.
Management as an Activity
Like various other activities performed by human beings such as writing, playing, eating, cooking etc,
management is also an activity because a manager is one who accomplishes the objectives by directing
the efforts of others. According to Koontz, Management is what a manager does. Management as an
activity includes 1. Informational activities - In the functioning of business enterprise, the manager constantly has
to receive and give information orally or in written. A communication link has to be maintained
with subordinates as well as superiors for effective functioning of an enterprise.
2. Decisional activities - Practically all types of managerial activities are based on one or the other
types of decisions. Therefore, managers are continuously involved in decisions of different kinds
since the decision made by one manager becomes the basis of action to be taken by other
managers. (E.g. Sales Manager is deciding the media & content of advertising).
3. Inter-personal activities - Management involves achieving goals through people. Therefore,
managers have to interact with superiors as well as the sub-ordinates. They must maintain good
relations with them. The inter-personal activities include with the sub-ordinates and taking care
of the problem. (E.g. Bonuses to be given to the sub-ordinates).
Management as a Discipline
Management as a discipline refers to that branch of knowledge which is connected to study of
principles & practices of basic administration. It specifies certain code of conduct to be followed by the
manager & also various methods for managing resources efficiently.
Management as a discipline specifies certain code of conduct for managers & indicates various
methods of managing an enterprise. Management is a course of study which is now formally being
taught in the institutes and universities after completing a prescribed course or by obtaining degree or
diploma in management, a person can get employment as a manager.
Any branch of knowledge that fulfils following two requirements is known as discipline:
1. There must be scholars & thinkers who communicate relevant knowledge through research and
publications.
2. The knowledge should be formally imparted by education and training programmes.
Since management satisfies both these problems, therefore it qualifies to be a discipline. Though it is
comparatively a new discipline but it is growing at a faster pace.
Management as a Group
Management as a group refers to all those persons who perform the task of managing an
enterprise. When we say that management of ABC & Co. is good, we are referring to a group of people
those who are managing. Thus as a group technically speaking, management will include all managers
from chief executive to the first - line managers (lower-level managers). But in common practice
management includes only top management i.e. Chief Executive, Chairman, General Manager, Board of
Directors etc. In other words, those who are concerned with making important decisions, these persons
enjoy the authorities to use resources to accomplish organizational objectives & also responsibility to for
their efficient utilization.
Management as a group may be looked upon in 2 different ways:
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1. All managers taken together.

2. Only the top management
The interpretation depends upon the context in which these terms are used. Broadly speaking, there are 3
types of managers 1. Patrimonial / Family Manager: Those who have become managers by virtue of their being
owners or relatives of the owners of company.
2. Professional Managers: Those who have been appointed on account of their specialized
knowledge and degree.
3. Political Managers / Civil Servants: Those who manage public sector undertakings.
Managers have become a part of elite group of society as they enjoy higher standard of living in the
society.
Management as science
Science is a systematic body of knowledge pertaining to a specific field of study that contains
general facts which explains a phenomenon. It establishes cause and effect relationship between two or
more variables and underlines the principles governing their relationship. These principles are developed
through scientific method of observation and verification through testing.
Science is characterized by following main features:
1. Universally acceptance principles - Scientific principles represents basic truth about a
particular field of enquiry. These principles may be applied in all situations, at all time & at all
places. E.g. - law of gravitation which can be applied in all countries irrespective of the time.
Management also contains some fundamental principles which can be applied universally like
the Principle of Unity of Command i.e. one man, one boss. This principle is applicable to all type
of organization - business or non business.
2. Experimentation & Observation - Scientific principles are derived through scientific
investigation & researching i.e. they are based on logic. E.g. the principle that earth goes round
the sun has been scientifically proved.
Management principles are also based on scientific enquiry & observation and not only on the
opinion of Henry Fayol. They have been developed through experiments & practical experiences
of large no. of managers. E.g. it is observed that fair remuneration to personal helps in creating a
satisfied work force.
3. Cause & Effect Relationship - Principles of science lay down cause and effect relationship
between various variables. E.g. when metals are heated, they are expanded. The cause is heating
& result is expansion.
The same is true for management, therefore it also establishes cause and effect relationship. E.g.
lack of parity (balance) between authority & responsibility will lead to ineffectiveness. If you
know the cause i.e. lack of balance, the effect can be ascertained easily i.e. in effectiveness.
Similarly if workers are given bonuses, fair wages they will work hard but when not treated in
fair and just manner, reduces productivity of organization.
4.
Test of Validity & Predictability - Validity of scientific principles can be tested at any time or
any number of times i.e. they stand the test of time. Each time these tests will give same result.
Moreover future events can be predicted with reasonable accuracy by using scientific principles. E.g. H 2
& O2 will always give H2O.
Principles of management can also be tested for validity. E.g. principle of unity of command can
be tested by comparing two persons - one having single boss and one having 2 bosses. The performance
of 1st person will be better than 2nd.
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It cannot be denied that management has a systematic body of knowledge but it is not as exact as
that of other physical sciences like biology, physics, and chemistry etc. The main reason for the
inexactness of science of management is that it deals with human beings and it is very difficult to predict
their behavior accurately. Since it is a social process, therefore it falls in the area of social sciences. It is
a flexible science & that is why its theories and principles may produce different results at different
times and therefore it is a behavior science. Ernest Dale has called it as a Soft Science.
Management as Art Art implies application of knowledge & skill to trying about desired results. An art
may be defined as personalized application of general theoretical principles for achieving best possible
results. Art has the following characters 1. Practical Knowledge: Every art requires practical knowledge therefore learning of theory is not
sufficient. It is very important to know practical application of theoretical principles. E.g. to
become a good painter, the person may not only be knowing different colour and brushes but
different designs, dimensions, situations etc to use them appropriately. A manager can never be
successful just by obtaining degree or diploma in management; he must have also know how to
apply various principles in real situations by functioning in capacity of manager.
2. Personal Skill: Although theoretical base may be same for every artist, but each one has his own
style and approach towards his job. That is why the level of success and quality of performance
differs from one person to another. E.g. there are several qualified painters but M.F. Hussain is
recognized for his style. Similarly management as an art is also personalized. Every manager has
his own way of managing things based on his knowledge, experience and personality, that is why
some managers are known as good managers (like Aditya Birla, Rahul Bajaj) whereas others as
bad.
3. Creativity: Every artist has an element of creativity in line. That is why he aims at producing
something that has never existed before which requires combination of intelligence &
imagination. Management is also creative in nature like any other art. It combines human and
non-human resources in useful way so as to achieve desired results. It tries to produce sweet
music by combining chords in an efficient manner.
4. Perfection through practice: Practice makes a man perfect. Every artist becomes more and more
proficient through constant practice. Similarly managers learn through an art of trial and error
initially but application of management principles over the years makes them perfect in the job of
managing.
5. Goal-Oriented: Every art is result oriented as it seeks to achieve concrete results. In the same
manner, management is also directed towards accomplishment of pre-determined goals. Managers
use various resources like men, money, material, machinery & methods to promote growth of an
organization.
Thus, we can say that management is an art therefore it requires application of certain principles
rather it is an art of highest order because it deals with moulding the attitude and behavior of people at
work towards desired goals.

Management as both Science and Art

Management is both an art and a science. The above mentioned points clearly reveals that
management combines features of both science as well as art. It is considered as a science because it has
an organized body of knowledge which contains certain universal truth. It is called an art because
managing requires certain skills which are personal possessions of managers. Science provides the
knowledge & art deals with the application of knowledge and skills.
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A manager to be successful in his profession must acquire the knowledge of science & the art of
applying it. Therefore management is a judicious blend of science as well as an art because it proves the
principles and the way these principles are applied is a matter of art. Science teaches to know and art
teaches to do. E.g. a person cannot become a good singer unless he has knowledge about various ragas
& he also applies his personal skill in the art of singing. Same way it is not sufficient for manager to first
know the principles but he must also apply them in solving various managerial problems that is why,
science and art are not mutually exclusive but they are complementary to each other (like tea and biscuit,
bread and butter etc.).
The old saying that Manager are Born has been rejected in favor of Managers are Made. It
has been aptly remarked that management is the oldest of art and youngest of science. To conclude, we
can say that science is the root and art is the fruit.
Management as profession
Over a large few decades, factors such as growing size of business unit, separation of ownership
from management, growing competition etc have led to an increased demand for professionally qualified
managers. The task of manager has been quite specialized. As a result of these developments the
management has reached a stage where everything is to be managed professionally.
A profession may be defined as an occupation that requires specialized knowledge and intensive
academic preparations to which entry is regulated by a representative body. The essentials of a
profession are:
1. Specialized Knowledge - A profession must have a systematic body of knowledge that can be
used for development of professionals. Every professional must make deliberate efforts to
acquire expertise in the principles and techniques. Similarly a manager must have devotion and
involvement to acquire expertise in the science of management.
2. Formal Education & Training - There are no. of institutes and universities to impart education
& training for a profession. No one can practice a profession without going through a prescribed
course. Many institutes of management have been set up for imparting education and training.
For example, a CA cannot audit the A/Cs unless he has acquired a degree or diploma for the
same but no minimum qualifications and a course of study has been prescribed for managers by
law. For example, MBA may be preferred but not necessary.
3. Social Obligations - Profession is a source of livelihood but professionals are primarily
motivated by the desire to serve the society. Their actions are influenced by social norms and
values. Similarly a manager is responsible not only to its owners but also to the society and
therefore he is expected to provide quality goods at reasonable prices to the society.
4. Code of Conduct - Members of a profession have to abide by a code of conduct which contains
certain rules and regulations, norms of honesty, integrity and special ethics. A code of conduct is
enforced by a representative association to ensure self discipline among its members. Any
member violating the code of conduct can be punished and his membership can be withdrawn.
The AIMA has prescribed a code of conduct for managers but it has no right to take legal action
against any manager who violates it.
5. Representative Association - For the regulation of profession, existance of a representative
body is a must. For example, an institute of Charted Accountants of India establishes and
administers standards of competence for the auditors but the AIMA however does not have any
statuary powers to regulate the activities of managers.
From above discussion, it is quite clear that management fulfills several essentials of a profession, even
then it is not a fully fledged profession because: a. It does not restrict the entry in managerial jobs for account of one standard or other.
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b. No minimum qualifications have been prescribed for managers.

c. No management association has the authority to grant a certificate of practice to various
managers.
d. All managers are supposed to abide by the code formulated by AIMA,
e. Competent education and training facilities do not exist.
f. Managers are responsible to many groups such as shareholders, employees and society. A
regulatory code may curtail their freedom.
g. Managers are known by their performance and not mere degrees.
h. The ultimate goal of business is to maximize profit and not social welfare. That is why Haymes
has rightly remarked, The slogan for management is becoming - He who serves best, also
profits most.
FEATURES OF MANAGEMENT Management is an activity concerned with guiding human and
physical resources such that organizational goals can be achieved. Nature of management can be
highlighted as: 1. Management is Goal-Oriented: The success of any management activity is accessed by its
achievement of the predetermined goals or objective. Management is a purposeful activity. It is a
tool which helps use of human & physical resources to fulfill the pre-determined goals. For
example, the goal of an enterprise is maximum consumer satisfaction by producing quality goods
and at reasonable prices. This can be achieved by employing efficient persons and making better
use of scarce resources.
2. Management integrates Human, Physical and Financial Resources: In an organization,
human beings work with non-human resources like machines. Materials, financial assets,
buildings etc. Management integrates human efforts to those resources. It brings harmony among
the human, physical and financial resources.
3. Management is Continuous: Management is an ongoing process. It involves continuous
handling of problems and issues. It is concerned with identifying the problem and taking
appropriate steps to solve it. E.g. the target of a company is maximum production. For achieving
this target various policies have to be framed but this is not the end. Marketing and Advertising is
also to be done. For this policies have to be again framed. Hence this is an ongoing process.
4. Management is all Pervasive: Management is required in all types of organizations whether it
is political, social, cultural or business because it helps and directs various efforts towards a
definite purpose. Thus clubs, hospitals, political parties, colleges, hospitals, business firms all
require management. Whenever more than one person is engaged in working for a common goal,
management is necessary. Whether it is a small business firm which may be engaged in trading
or a large firm like Tata Iron & Steel, management is required everywhere irrespective of size or
type of activity.
5. Management is a Group Activity: Management is very much less concerned with individuals
efforts. It is more concerned with groups. It involves the use of group effort to achieve
predetermined goal of management of ABC & Co. is good refers to a group of persons managing
the enterprise.
The term Levels of Management refers to a line of demarcation between various managerial positions
in an organization. The number of levels in management increases when the size of the business and
work force increases and vice versa. The level of management determines a chain of command, the
amount of authority & status enjoyed by any managerial position. The levels of management can be
classified in three broad categories: 1. Top level / Administrative level
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2. Middle level / Executory

3. Low level / Supervisory / Operative / First-line managers
Managers at all these levels perform different functions. The role of managers at all the three levels is
discussed below:

LEVELS OF MANAGEMENT

1. Top Level of Management

It consists of board of directors, chief executive or managing director. The top management is the
ultimate source of authority and it manages goals and policies for an enterprise. It devotes more
time on planning and coordinating functions.
The role of the top management can be summarized as follows a. Top management lays down the objectives and broad policies of the enterprise.
b. It issues necessary instructions for preparation of department budgets, procedures,
schedules etc.
c. It prepares strategic plans & policies for the enterprise.
d. It appoints the executive for middle level i.e. departmental managers.
e. It controls & coordinates the activities of all the departments.
f. It is also responsible for maintaining a contact with the outside world.
g. It provides guidance and direction.
h. The top management is also responsible towards the shareholders for the performance of
the enterprise.

2. Middle Level of Management

The branch managers and departmental managers constitute middle level. They are responsible
to the top management for the functioning of their department. They devote more time to
organizational and directional functions. In small organization, there is only one layer of middle
level of management but in big enterprises, there may be senior and junior middle level
management. Their role can be emphasized as a. They execute the plans of the organization in accordance with the policies and directives
of the top management.
b. They make plans for the sub-units of the organization.
c. They participate in employment & training of lower level management.
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d. They interpret and explain policies from top level management to lower level.
e. They are responsible for coordinating the activities within the division or department.
f. It also sends important reports and other important data to top level management.
g. They evaluate performance of junior managers.
h. They are also responsible for inspiring lower level managers towards better performance.
3. Lower Level of Management
Lower level is also known as supervisory / operative level of management. It consists of
supervisors, foreman, section officers, superintendent etc. According to R.C. Davis, Supervisory
management refers to those executives whose work has to be largely with personal oversight and
direction of operative employees. In other words, they are concerned with direction and
controlling function of management. Their activities include a. Assigning of jobs and tasks to various workers.
b. They guide and instruct workers for day to day activities.
c. They are responsible for the quality as well as quantity of production.
d. They are also entrusted with the responsibility of maintaining good relation in the
organization.
e. They communicate workers problems, suggestions, and recommendatory appeals etc to
the higher level and higher level goals and objectives to the workers.
f. They help to solve the grievances of the workers.
g. They supervise & guide the sub-ordinates.
h. They are responsible for providing training to the workers.
i. They arrange necessary materials, machines, tools etc for getting the things done.
j. They prepare periodical reports about the performance of the workers.
k. They ensure discipline in the enterprise.
l. They motivate workers.
m. They are the image builders of the enterprise because they are in direct contact with the
workers.
OBJECTIVES OF MANAGEMENT
The main objectives of management are:
1. Getting Maximum Results with Minimum Efforts - The main objective of management is to
secure maximum outputs with minimum efforts & resources. Management is basically concerned
with thinking & utilizing human, material & financial resources in such a manner that would
result in best combination. This combination results in reduction of various costs.
2. Increasing the Efficiency of factors of Production - Through proper utilization of various
factors of production, their efficiency can be increased to a great extent which can be obtained by
reducing spoilage, wastages and breakage of all kinds, this in turn leads to saving of time, effort
and money which is essential for the growth & prosperity of the enterprise.
3. Maximum Prosperity for Employer & Employees - Management ensures smooth and
coordinated functioning of the enterprise. This in turn helps in providing maximum benefits to
the employee in the shape of good working condition, suitable wage system, incentive plans on
the one hand and higher profits to the employer on the other hand.
4. Human betterment & Social Justice - Management serves as a tool for the upliftment as well
as betterment of the society. Through increased productivity & employment, management
ensures better standards of living for the society. It provides justice through its uniform policies.
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IMPORTANCE OF MANAGEMENT
1. It helps in Achieving Group Goals - It arranges the factors of production, assembles and
organizes the resources, integrates the resources in effective manner to achieve goals. It directs
group efforts towards achievement of pre-determined goals. By defining objective of
organization clearly there would be no wastage of time, money and effort. Management converts
disorganized resources of men, machines, money etc. into useful enterprise. These resources are
coordinated, directed and controlled in such a manner that enterprise work towards attainment of
goals.
2. Optimum Utilization of Resources - Management utilizes all the physical & human resources
productively. This leads to efficacy in management. Management provides maximum utilization
of scarce resources by selecting its best possible alternate use in industry from out of various
uses. It makes use of experts, professional and these services leads to use of their skills,
knowledge, and proper utilization and avoids wastage. If employees and machines are producing
its maximum there is no under employment of any resources.
3. Reduces Costs - It gets maximum results through minimum input by proper planning and by
using minimum input & getting maximum output. Management uses physical, human and
financial resources in such a manner which results in best combination. This helps in cost
reduction.
4. Establishes Sound Organization - No overlapping of efforts (smooth and coordinated
functions). To establish sound organizational structure is one of the objective of management
which is in tune with objective of organization and for fulfillment of this, it establishes effective
authority & responsibility relationship i.e. who is accountable to whom, who can give
instructions to whom, who are superiors & who are subordinates. Management fills up various
positions with right persons, having right skills, training and qualification. All jobs should be
cleared to everyone.
5. Establishes Equilibrium - It enables the organization to survive in changing environment. It
keeps in touch with the changing environment. With the change is external environment, the
initial co-ordination of organization must be changed. So it adapts organization to changing
demand of market / changing needs of societies. It is responsible for growth and survival of
organization.
6. Essentials for Prosperity of Society - Efficient management leads to better economical
production which helps in turn to increase the welfare of people. Good management makes a
difficult task easier by avoiding wastage of scarce resource. It improves standard of living. It
increases the profit which is beneficial to business and society will get maximum output at
minimum cost by creating employment opportunities which generate income in hands.
Organization comes with new products and researches beneficial for society.
According to Theo Haimann, Administration means overall determination of policies, setting of major
objectives, the identification of general purposes and laying down of broad programmes and projects. It
refers to the activities of higher level. It lays down basic principles of the enterprise. According to
Newman, Administration means guidance, leadership & control of the efforts of the groups towards
some common goals.
Whereas, management involves conceiving, initiating and bringing together the various elements;
coordinating, actuating, integrating the diverse organizational components while sustaining the viability
of the organization towards some pre-determined goals. In other words, it is an art of getting things done
through & with the people in formally organized groups.
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The difference between Management and Administration can be summarized under 2 categories:
1. Functions
2. Usage / Applicability
On the Basis of Functions: Basis

Management

Administration

Meaning

Management is an art of getting things done

through others by directing their efforts
towards achievement of pre-determined
goals.

It is concerned with formulation of

broad objectives, plans & policies.

Nature

Management is an executing function.

Administration is a decisionmaking function.

Process

Management decides who should as it & how

should he dot it.

Administration decides what is to

be done & when it is to be done.

Function

Management is a doing function because

managers get work done under their
supervision.

Administration is a thinking
function because plans & policies
are determined under it.

Skills

Technical and Human skills

Conceptual and Human skills

Level

Middle & lower level function

Top level function

On the Basis of Usage: Basis

Management

Administration

Applicability

It is applicable to business concerns i.e.

profit-making organization.

It is applicable to non-business concerns i.e.

clubs, schools, hospitals etc.

Influence

The management decisions are

The administration is influenced by public

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Status

influenced by the values, opinions,

beliefs & decisions of the managers.

opinion, govt. policies, religious

organizations, customs etc.

Management constitutes the employees

of the organization who are paid
remuneration (in the form of salaries &
wages).

Administration represents owners of the

enterprise who earn return on their capital
invested & profits in the form of dividend.

Practically, there is no difference between management & administration. Every manager is

concerned with both - administrative management function and operative management function as
shown in the figure. However, the managers who are higher up in the hierarchy denote more time on
administrative function & the lower level denote more time on directing and controlling workers
performance i.e. management.

The Figure above clearly shows the degree of administration and management performed by the
different levels of management
FUNCTIONS OF MANAGEMENT Management has been described as a social process involving
responsibility for economical and effective planning & regulation of operation of an enterprise in the
fulfillment of given purposes. It is a dynamic process consisting of various elements and activities.
These activities are different from operative functions like marketing, finance, purchase etc. Rather these
activities are common to each and every manger irrespective of his level or status. Different experts have
classified functions of management. According to George & Jerry, There are four fundamental
functions of management i.e. planning, organizing, actuating and controlling. According to Henry
Fayol, To manage is to forecast and plan, to organize, to command, & to control. Whereas Luther
Gullick has given a keyword POSDCORB where P stands for Planning, O for Organizing, S for
Staffing, D for Directing, Co for Co-ordination, R for reporting & B for Budgeting. But the most widely
accepted are functions of management given by KOONTZ and ODONNEL i.e. Planning, Organizing,
Staffing, Directing and Controlling.
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For theoretical purposes, it may be convenient to separate the function of management but practically
these functions are overlapping in nature i.e. they are highly inseparable. Each function blends into the
other & each affects the performance of others.

1. Planning
It is the basic function of management. It deals with chalking out a future course of
action & deciding in advance the most appropriate course of actions for achievement of predetermined goals. According to KOONTZ, Planning is deciding in advance - what to do, when
to do & how to do. It bridges the gap from where we are & where we want to be. A plan is a
future course of actions. It is an exercise in problem solving & decision making. Planning is
determination of courses of action to achieve desired goals. Thus, planning is a systematic
thinking about ways & means for accomplishment of pre-determined goals. Planning is
necessary to ensure proper utilization of human & non-human resources. It is all pervasive, it is
an intellectual activity and it also helps in avoiding confusion, uncertainties, risks, wastages etc.
2. Organizing
It is the process of bringing together physical, financial and human resources and
developing productive relationship amongst them for achievement of organizational goals.
According to Henry Fayol, To organize a business is to provide it with everything useful or its
functioning i.e. raw material, tools, capital and personnels. To organize a business involves
determining & providing human and non-human resources to the organizational structure.
Organizing as a process involves:
Identification of activities.
Classification of grouping of activities.
Assignment of duties.
Delegation of authority and creation of responsibility.
Coordinating authority and responsibility relationships.
3. Staffing
It is the function of manning the organization structure and keeping it manned. Staffing has
assumed greater importance in the recent years due to advancement of technology, increase in
12

size of business, complexity of human behavior etc. The main purpose o staffing is to put right
man on right job i.e. square pegs in square holes and round pegs in round holes. According to
Kootz & ODonell, Managerial function of staffing involves manning the organization structure
through proper and effective selection, appraisal & development of personnel to fill the roles
designed un the structure. Staffing involves:
Manpower Planning (estimating man power in terms of searching, choose the person and
giving the right place).
Recruitment, selection & placement.
Training & development.
Remuneration.
Performance appraisal.
Promotions & transfer.
4. Directing
It is that part of managerial function which actuates the organizational methods to work
efficiently for achievement of organizational purposes. It is considered life-spark of the
enterprise which sets it in motion the action of people because planning, organizing and staffing
are the mere preparations for doing the work. Direction is that inert-personnel aspect of
management which deals directly with influencing, guiding, supervising, motivating sub-ordinate
for the achievement of organizational goals. Direction has following elements:
Supervision
Motivation
Leadership
Communication
Supervision- implies overseeing the work of subordinates by their superiors. It is the act of
watching & directing work & workers.
Motivation- means inspiring, stimulating or encouraging the sub-ordinates with zeal to work.
Positive, negative, monetary, non-monetary incentives may be used for this purpose.
Leadership- may be defined as a process by which manager guides and influences the work of
subordinates in desired direction.
Communications- is the process of passing information, experience, opinion etc from one
person to another. It is a bridge of understanding.
5. Controlling
It implies measurement of accomplishment against the standards and correction of
deviation if any to ensure achievement of organizational goals. The purpose of controlling is to
ensure that everything occurs in conformities with the standards. An efficient system of control
helps to predict deviations before they actually occur. According to Theo Haimann, Controlling
is the process of checking whether or not proper progress is being made towards the objectives
and goals and acting if necessary, to correct any deviation. According to Koontz & ODonell
Controlling is the measurement & correction of performance activities of subordinates in order
to make sure that the enterprise objectives and plans desired to obtain them as being
accomplished. Therefore controlling has following steps:

Establishment of standard performance.

Measurement of actual performance.
Comparison of actual performance with the standards and finding out deviation if any.
Corrective action.
13

Co-ordination is the unification, integration, synchronization of the efforts of group members so as to

provide unity of action in the pursuit of common goals. It is a hidden force which binds all the other
functions of management. According to Mooney and Reelay, Co-ordination is orderly arrangement of
group efforts to provide unity of action in the pursuit of common goals. According to Charles Worth,
Co-ordination is the integration of several parts into an orderly hole to achieve the purpose of
understanding.
Management seeks to achieve co-ordination through its basic functions of planning, organizing, staffing,
directing and controlling. That is why, co-ordination is not a separate function of management because
achieving of harmony between individuals efforts towards achievement of group goals is a key to success
of management. Co-ordination is the essence of management and is implicit and inherent in all functions
of management.
A manager can be compared to an orchestra conductor since both of them have to create rhythm and
unity in the activities of group members. Co-ordination is an integral element or ingredient of all the
managerial functions as discussed below: Co-ordination through Planning - Planning facilitates co-ordination by integrating the various plans
through mutual discussion, exchange of ideas. e.g. - co-ordination between finance budget and
purchases budget.
Co-ordination through Organizing - Mooney considers co-ordination as the very essence of
organizing. In fact when a manager groups and assigns various activities to subordinates, and when he
creates departments co-ordination uppermost in his mind.
Co-ordination through Staffing - A manager should bear in mind that the right no. of personnel in
various positions with right type of education and skills are taken which will ensure right men on the
right job.
Co-ordination through Directing - The purpose of giving orders, instructions & guidance to the
subordinates is served only when there is a harmony between superiors & subordinates.
Co-ordination through Controlling - Manager ensures that there should be co-ordination between
actual performance & standard performance to achieve organizational goals.
From above discussion, we can very much affirm that co-ordination is the very much essence of
management. It is required in each & every function and at each & every stage & therefore it cannot be
separated.
Co-ordination is an orderly arrangement of efforts to provide unity of action in the fulfillment of
common objective whereas co-operation denotes collective efforts of persons working in an enterprise
voluntarily for the achievement of a particular purpose. It is the willingness of individuals to help each
other.
Co-ordination is an effort to integrate effectively energies of different groups whereas co-operation is
sort to achieve general objectives of business.
Though these two are synonymous but they are different as below:

Differences between Co-ordination and Co-operation

14

Meaning

It is an orderly arrangement of group

efforts in pursuit of common goals.

It means mutual help willingly.

Scope

It is broader than co-operation which

includes as well because it harmonizes
the group efforts.

It is termed as a part of co-ordination.

Process

The function of co-ordination is

performed by top management.

The functions of co-operation are prepared

by persons at any level.

Requirements

Co-ordination is required by employees

and departments at work irrespective of
their work.

Co-operation is emotional in nature because

it depends on the willingness of people
working together.

Relationship

It establishes formal and informal

relationships.

It establishes informal relationship.

Freedom

It is planned and entrusted by the central

authority & it is essential.

It depends upon the sweet will of the

individuals and therefore it is not necessary.

Support

It seeks wholehearted support from

various people working at various
levels.

Co-operation without co-ordination is

fruitless & therefore it may lead to
unbalanced developments.

Therefore, existence of co-operation may prove to be effective condition or requisite for coordination. But it does not mean that co-ordination originates automatically from the voluntary efforts of
the group of members. It has to be achieved through conscious & deliberate efforts of managers,
therefore to conclude we can say that co-operation without co-ordination has no fruit and co-ordination
without co-operation has no root.
A principle refers to a fundamental truth. It establishes cause and effect relationship between two or
more variables under given situation. They serve as a guide to thought & actions. Therefore,
management principles are the statements of fundamental truth based on logic which provides guidelines
for managerial decision making and actions. These principles are derived: a. On the basis of observation and analysis i.e. practical experience of managers.
b. By conducting experimental studies.
PRINCIPLES OF MANAGEMENT - HENRI FAYOL.
1. Division of Labor
a. Henry Fayol has stressed on the specialization of jobs.
b. He recommended that work of all kinds must be divided & subdivided and allotted to
various persons according to their expertise in a particular area.
15

c. Subdivision of work makes it simpler and results in efficiency.

d. It also helps the individual in acquiring speed, accuracy in his performance.
e. Specialization leads to efficiency & economy in spheres of business.
2. Party of Authority & Responsibility
a. Authority & responsibility are co-existing.
b. If authority is given to a person, he should also be made responsible.
c. In a same way, if anyone is made responsible for any job, he should also have concerned
authority.
d. Authority refers to the right of superiors to get exactness from their sub-ordinates
whereas responsibility means obligation for the performance of the job assigned.
e. There should be a balance between the two i.e. they must go hand in hand.
f. Authority without responsibility leads to irresponsible behavior whereas responsibility
without authority makes the person ineffective.
3. Principle of One Boss
a. A sub-ordinate should receive orders and be accountable to one and only one boss at a
time.
b. In other words, a sub-ordinate should not receive instructions from more than one person
because - It undermines authority
- Weakens discipline
- Divides loyalty
- Creates confusion
- Delays and chaos
- Escaping responsibilities
- Duplication of work
- Overlapping of efforts
c. Therefore, dual sub-ordination should be avoided unless and until it is absolutely
essential.
d. Unity of command provides the enterprise a disciplined, stable & orderly existence.
e. It creates harmonious relationship between superiors and sub-ordinates.
4. Unity of Direction
a. Fayol advocates one head one plan which means that there should be one plan for a group
of activities having similar objectives.
b. Related activities should be grouped together. There should be one plan of action for
them and they should be under the charge of a particular manager.
c. According to this principle, efforts of all the members of the organization should be
directed towards common goal.
d. Without unity of direction, unity of action cannot be achieved.
e. In fact, unity of command is not possible without unity of direction.
Basis

Unity of command

Unity of direction

Meaning

It implies that a sub-ordinate should receive

orders & instructions from only one boss.

It means one head, one plan for a group of

activities having similar objectives.

16

Nature

It is related to the functioning of personnels.

It is related to the functioning of

departments, or organization as a whole.

Necessity

It is necessary for fixing responsibility of

each subordinates.

It is necessary for sound organization.

Advantage

It avoids conflicts, confusion & chaos.

It avoids duplication of efforts and

wastage of resources.

Result

It leads to better superior sub-ordinate

relationship.

It leads to smooth running of the

enterprise.

Therefore it is obvious that they are different from each other but they are dependent on each other i.e.
unity of direction is a pre-requisite for unity of command. But it does not automatically comes from the
unity of direction.
5. Equity
a. Equity means combination of fairness, kindness & justice.
b. The employees should be treated with kindness & equity if devotion is expected of them.
c. It implies that managers should be fair and impartial while dealing with the subordinates.
d. They should give similar treatment to people of similar position.
e. They should not discriminate with respect to age, caste, sex, religion, relation etc.
f. Equity is essential to create and maintain cordial relations between the managers and subordinate.
g. But equity does not mean total absence of harshness.
h. Fayol was of opinion that, at times force and harshness might become necessary for the
sake of equity.
6. Order
a. This principle is concerned with proper & systematic arrangement of things and people.
b. Arrangement of things is called material order and placement of people is called social
order.
c. Material order- There should be safe, appropriate and specific place for every article and
every place to be effectively used for specific activity and commodity.
d. Social order- Selection and appointment of most suitable person on the suitable job.
There should be a specific place for every one and everyone should have a specific place
so that they can easily be contacted whenever need arises.
7. Discipline
a. According to Fayol, Discipline means sincerity, obedience, respect of authority &
observance of rules and regulations of the enterprise.
b. This principle applies that subordinate should respect their superiors and obey their order.
c. It is an important requisite for smooth running of the enterprise.

17

d. Discipline is not only required on path of subordinates but also on the part of
management.
e. Discipline can be enforced if - There are good superiors at all levels.
- There are clear & fair agreements with workers.
- Sanctions (punishments) are judiciously applied.
8. Initiative
a. Workers should be encouraged to take initiative in the work assigned to them.
b. It means eagerness to initiate actions without being asked to do so.
c. Fayol advised that management should provide opportunity to its employees to suggest
ideas, experiences& new method of work.
d. It helps in developing an atmosphere of trust and understanding.
e. People then enjoy working in the organization because it adds to their zeal and energy.
f. To suggest improvement in formulation & implementation of place.
g. They can be encouraged with the help of monetary & non-monetary incentives.
9. Fair Remuneration
a. The quantum and method of remuneration to be paid to the workers should be fair,
reasonable, satisfactory & rewarding of the efforts.
b. As far as possible it should accord satisfaction to both employer and the employees.
c. Wages should be determined on the basis of cost of living, work assigned, financial
position of the business, wage rate prevailing etc.
d. Logical & appropriate wage rates and methods of their payment reduce tension &
differences between workers & management creates harmonious relationship and
pleasing atmosphere of work.
e. Fayol also recommended provision of other benefits such as free education, medical &
residential facilities to workers.
10. Stability of Tenure
a. Fayol emphasized that employees should not be moved frequently from one job position
to another i.e. the period of service in a job should be fixed.
b. Therefore employees should be appointed after keeping in view principles of recruitment
& selection but once they are appointed their services should be served.
c. According to Fayol. Time is required for an employee to get used to a new work &
succeed to doing it well but if he is removed before that he will not be able to render
worthwhile services.
d. As a result, the time, effort and money spent on training the worker will go waste.
e. Stability of job creates team spirit and a sense of belongingness among workers which
ultimately increase the quality as well as quantity of work.
11. Scalar Chain
18

a. Fayol defines scalar chain as The chain of superiors ranging from the ultimate authority
to the lowest.
b. Every orders, instructions, messages, requests, explanation etc. has to pass through Scalar
chain.
c. But, for the sake of convenience & urgency, this path can be cut shirt and this short cut is
known as Gang Plank.
d. A Gang Plank is a temporary arrangement between two different points to facilitate
quick
&
easy
communication
as
explained
below:

In the figure given, if D has to communicate with G he will first send the communication
upwards with the help of C, B to A and then downwards with the help of E and F to G
which will take quite some time and by that time, it may not be worth therefore a gang
plank has been developed between the two.
e. Gang Plank clarifies that management principles are not rigid rather they are very
flexible. They can be moulded and modified as per the requirements of situations
12. Sub-Ordination of Individual Interest to General Interest
a. An organization is much bigger than the individual it constitutes therefore interest of the
undertaking should prevail in all circumstances.
b. As far as possible, reconciliation should be achieved between individual and group
interests.
c. But in case of conflict, individual must sacrifice for bigger interests.
d. In order to achieve this attitude, it is essential that - Employees should be honest & sincere.
- Proper & regular supervision of work.
- Reconciliation of mutual differences and clashes by mutual agreement. For
example, for change of location of plant, for change of profit sharing ratio, etc.
19

13. Espirit De Corps (can be achieved through unity of command)

a. It refers to team spirit i.e. harmony in the work groups and mutual understanding among
the members.
b. Spirit De Corps inspires workers to work harder.
c. Fayol cautioned the managers against dividing the employees into competing groups
because it might damage the moral of the workers and interest of the undertaking in the
long run.
d. To inculcate Espirit De Corps following steps should be undertaken

There should be proper co-ordination of work at all levels

Subordinates should be encouraged to develop informal relations among

themselves.

Efforts should be made to create enthusiasm and keenness among subordinates so

that they can work to the maximum ability.

Efficient employees should be rewarded and those who are not up to the mark
should be given a chance to improve their performance.

Subordinates should be made conscious of that whatever they are doing is of great
importance to the business & society.

e. He also cautioned against the more use of Britain communication to the subordinates i.e.
face to face communication should be developed. The managers should infuse team spirit
& belongingness. There should be no place for misunderstanding. People then enjoy
working in the organization & offer their best towards the organization.
14. Centralization & De-Centralization
a. Centralization means concentration of authority at the top level. In other words,
centralization is a situation in which top management retains most of the decision making
authority.
b. Decentralization means disposal of decision making authority to all the levels of the
organization. In other words, sharing authority downwards is decentralization.
c. According to Fayol, Degree of centralization or decentralization depends on no. of
factors like size of business, experience of superiors, dependability & ability of
subordinates etc.
d. Anything which increases the role of subordinate is decentralization & anything which
decreases it is centralization.
e. Fayol suggested that absolute centralization or decentralization is not feasible. An
organization should strike to achieve a lot between the two.
MANAGEMENT PRINCIPLES - FEATURES
Principles of Management are Universal
20

a. Management principles are applicable to all kinds of organizations - business & non business.
b. They are applicable to all levels of management.
c. Every organization must make best possible use by the use of management principles.
d. Therefore, they are universal or all pervasive.
Principles of Management are Flexible
a. Management principles are dynamic guidelines and not static rules.
b. There is sufficient room for managerial discretion i.e. they can be modified as per the
requirements of the situation.
c. Modification & improvement is a continuous phenomenon in case of principles of management.
Principles of Management have a Cause & Effect Relationship
a. Principles of management indicate cause and effect relationship between related variables.
b. They indicate what will be the consequence or result of certain actions. Therefore, if one is
known, the other can be traced.
Principles of Management - Aims at Influencing Human Behavior
a. Human behavior is complex and unpredictable.
b. Management principles are directed towards regulating human behavior so that people can give
their best to the organization.
c. Management is concerned with integrating efforts and harmonizing them towards a goal.
d. But in certain situations even these principles fail to understand human behavior.
Principles of Management are of Equal Importance
a. All management principles are equally important.
b. No particular principle has greater importance than the other.
c. They are all required together for the achievement of organizational goals.
Following are the main importance of the Principles of Management.
1. Improves Understanding.
2. Direction for Training of Managers.
3. Role of Management.
4. Guide to Research in Management.
1. Improves Understanding - From the knowledge of principles managers get indication on how
to manage an organization. The principles enable managers to decide what should be done to
accomplish given tasks and to handle situations which may arise in management. These
principles make managers more efficient.
2. Direction for Training of Managers - Principles of management provide understanding of
management process what managers would do to accomplish what. Thus, these are helpful in
identifying the areas of management in which existing & future managers should be trained.
3. Role of Management - Management principles makes the role of managers concrete. Therefore
these principles act as ready reference to the managers to check whether their decisions are
appropriate. Besides these principles define managerial activities in practical terms. They tell
what a manager is expected to do in specific situation.
21

4. Guide to Research in Management - The body of management principles indicate lines along
which research should be undertaken to make management practical and more effective. The
principles guide managers in decision making and action. The researchers can examine whether
the guidelines are useful or not. Anything which makes management research more exact &
pointed will help improve management practice.
SCIENTIFIC MANAGEMENT - INTRODUCTION
Fredrick Winslow Taylor (March 20, 1856 - March 21, 1915) commonly known as Father of
Scientific Management started his career as an operator and rose to the position of chief engineer. He
conducted various experiments during this process which forms the basis of scientific management. It
implies application of scientific principles for studying & identifying management problems. According
to Taylor, Scientific Management is an art of knowing exactly what you want your men to do and
seeing that they do it in the best and cheapest way. In Taylors view, if a work is analyzed scientifically
it will be possible to find one best way to do it.
Hence scientific management is a thoughtful, organized, dual approach towards the job of
management against hit or miss or Rule of Thumb.
According to Drucker, The cost of scientific management is the organized study of work, the
analysis of work into simplest element & systematic management of workers performance of each
element.
PRINCIPLES OF SCIENTIFIC MANAGEMENT
1. Development of Science for each part of mens job (replacement of rule of thumb)
a. This principle suggests that work assigned to any employee should be observed, analyzed
with respect to each and every element and part and time involved in it.
b. This means replacement of odd rule of thumb by the use of method of enquiry,
investigation, data collection, analysis and framing of rules.
c. Under scientific management, decisions are made on the basis of facts and by the
application of scientific decisions.
2. Scientific Selection, Training & Development of Workers
a. There should be scientifically designed procedure for the selection of workers.
b. Physical, mental & other requirement should be specified for each and every job.
c. Workers should be selected & trained to make them fit for the job.
d. The management has to provide opportunities for development of workers having better
capabilities.
e. According to Taylor efforts should be made to develop each employee to his greatest
level and efficiency & prosperity.
3. Co-operation between Management & workers or Harmony not discord
a. Taylor believed in co-operation and not individualism.
22

b. It is only through co-operation that the goals of the enterprise can be achieved efficiently.
c. There should be no conflict between managers & workers.
d. Taylor believed that interest of employer & employees should be fully harmonized so as
to secure mutually understanding relations between them.
4. Division of Responsibility
a. This principle determines the concrete nature of roles to be played by different level of
managers & workers.
b. The management should assume the responsibility of planning the work whereas workers
should be concerned with execution of task.
c. Thus planning is to be separated from execution.
5. Mental Revolution
a. The workers and managers should have a complete change of outlook towards their
mutual relation and work effort.
b. It requires that management should create suitable working condition and solve all
problems scientifically.
c. Similarly workers should attend their jobs with utmost attention, devotion and
carefulness. They should not waste the resources of enterprise.
d. Handsome remuneration should be provided to workers to boost up their moral.
e. It will create a sense of belongingness among worker.
f. They will be disciplined, loyal and sincere in fulfilling the task assigned to them.
g. There will be more production and economical growth at a faster rate.
6. Maximum Prosperity for Employer & Employees
a. The aim of scientific management is to see maximum prosperity for employer and
employees.
b. It is important only when there is opportunity for each worker to attain his highest
efficiency.
c. Maximum output & optimum utilization of resources will bring higher profits for the
employer & better wages for the workers.
d. There should be maximum output in place of restricted output.
e. Both managers & workers should be paid handsomely.
TECHNIQUES OF SCIENTIFIC MANAGEMENT
23

1. Time Study
a. It is a technique which enables the manager to ascertain standard time taken for
performing a specified job.
b. Every job or every part of it is studied in detail.
c. This technique is based on the study of an average worker having reasonable skill and
ability.
d. Average worker is selected and assigned the job and then with the help of a stop watch,
time is ascertained for performing that particular job.
e. Taylor maintained that Fair days work should be determined through observations,
experiment and analysis by keeping in view an average worker.
Standard Time Working Hours = Fair Days Work
2. Motion Study
a. In this study, movement of body and limbs required to perform a job are closely
observed.
b. In other words, it refers to the study of movement of an operator on machine involved in
a particular task.
c. The purpose of motion study is to eliminate useless motions and determine the bet way of
doing the job.
d. By undertaking motion study an attempt is made to know whether some elements of a job
can be eliminated combined or their sequence can be changed to achieve necessary
rhythm.
e. Motion study increases the efficiency and productivity of workers by cutting down all
wasteful motions.
3. Functional Foremanship
Taylor advocated functional foremanship for achieving ultimate specification.
a. This technique was developed to improve the quality of work as single supervisor may
not be an expert in all the aspects of the work.
b. Therefore workers are to be supervised by specialist foreman.
c. The scheme of functional foremanship is an extension of principle pf specialization at the
supervisory level.
d. Taylor advocated appointment of 8 foramen, 4 at the planning level & other 4 at
implementation level.
e. The names & function of these specialist foremen are:

Instruction card clerk concerned with tagging down of instructions according to

which workers are required to perform their job
24

Time & cost clerk is concerned with setting a time table for doing a job &
specifying the material and labor cost involved in it.

Route clerk determines the route through which raw materials has to be passed.

Shop Disciplinarians are concerned with making rules and regulations to ensure
discipline in the organization.

Gang boss makes the arrangement of workers, machines, tools, workers etc.

Speed boss concerned with maintaining the speed and to remove delays in the
production process.

Repair boss concerned with maintenance of machine, tools and equipments.

Inspector is concerned with maintaining the quality of product.

4. Standardization
a. It implies the physical attitude of products should be such that it meets the requirements
& needs of customers.
b. Taylor advocated that tools & equipments as well as working conditions should be
standardized to achieve standard output from workers.
c. Standardization is a means of achieving economics of production.
d. It seems to ensure

The line of product is restricted to predetermined type, form, design, size, weight,
quality. Etc

There is manufacture of identical parts and components.

Quality & standards have been maintained.

Standard of performance are established for workers at all levels.

5. Differential Piece Wage Plan

a. This tech of wage payment is based on efficiency of worker.
b. The efficient workers are paid more wages than inefficient one.
c. On the other hand, those workers who produce less than standard no. of pieces are paid
wages at lower rate than prevailing rate i.e. worker is penalized for his inefficiency.
d. This system is a source of incentive to workers who improving their efficiency in order to
get more wages.
e. It also encourages inefficient workers to improve their performance and achieve their
standards.
25

f. It leads to mass production which minimizes cost and maximizes profits.

6. Other Techniques
a. Various other techniques have been developed to create ordeal relationship between
management and workers and also to create better understanding on part of works.
b. Those includes use of instruction cards, strict rules & regulations, graphs, slides, charts
etc, so as to increase efficiency of workers.
Criticism on scientific management
Although it is accepted that the scientific management enables the management to put resources to its
best possible use and manner, yet it has not been spared of severe criticism.

Workers Viewpoint
1. Unemployment - Workers feel that management reduces employment opportunities from them through
replacement of men by machines and by increasing human productivity less workers are needed to do
work leading to chucking out from their jobs.
2. Exploitation - Workers feel they are exploited as they are not given due share in increasing profits which
is due to their increased productivity. Wages do not rise in proportion as rise in production. Wage payment
creates uncertainty & insecurity (beyond a standard output, there is no increase in wage rate).
3. Monotony - Due to excessive specialization the workers are not able to take initiative on their own. Their
status is reduced to being mere cogs in wheel. Jobs become dull. Workers loose interest in jobs and derive
little pleasure from work.
4. Weakening of Trade Union - To everything is fixed & predetermined by management. So it leaves no
room for trade unions to bargain as everything is standardized, standard output, standard working
conditions, standard time etc. This further weakens trade unions, creates a rift between efficient & in
efficient workers according to their wages.
5. Over speeding - the scientific management lays standard output, time so they have to rush up and finish
the work in time. These have adverse effect on health of workers. The workers speed up to that standard
output, so scientific management drives the workers to rush towards output and finish work in standard
time.

Employers Viewpoint
1. Expensive - Scientific management is a costly system and a huge investment is required in establishment
of planning dept., standardization, work study, training of workers. It may be beyond reach of small firms.
Heavy food investment leads to increase in overhead costs.
2. Time Consuming - Scientific management requires mental revision and complete reorganizing of
organization. A lot of time is required for work, study, standardization & specialization. During this
overhauling of organization, the work suffers.
3. Deterioration of Quality

DIFFERENCES BETWEEN TAYLOR AND FAYOL PRINCIPLES

Both the persons have contributed to development of science of management. The contribution
of these two pioneers in the field of science of management has been reviewed as The work of Taylor
& Fayol was, of course, especially complementary. They both realized that problem of personnel & its
management at all levels is the key to individual success. Both applied scientific method to this problem
26

that Taylor worked primarily from operative level, from bottom to upward, while Fayol concentrated on
managing director and work downwards, was merely a reflection of their very different careers. They
both differ from each other in following aspects: 1. Taylor looked at management from supervisory viewpoint & tried to improve efficiency at
operating level. He moved upwards while formulating theory. On the other hand, Fayol analyzed
management from level of top management downward. Thus, Fayol could afford a broader
vision than Taylor.
2. Taylor called his philosophy Scientific Management while Fayol described his approach as A
general theory of administration.
3. Main aim of Taylor - to improve labor productivity & to eliminate all type of waste through
standardization of work & tools. Fayol attempted to develop a universal theory of management
and stressed upon need for teaching the theory of management.
4. Taylor focused his attention on fact by management and his principles are applicable on shop
floor. But Fayol concentrated on function of managers and on general principles of management
wheel could be equally applied in all.
Similarity - Both emphasized mutual co-operation between employment and employees.

Spheres of Human Activity

Fayols theory is more widely applicable than that of Taylor, although Taylors philosophy has
undergone a big change Under influence of modern development, but Fayols principles of management
have stood the test of time and are still being accepted as the core of management theory.

Psychologists View Point

According to Psychologists, Taylor's study had following drawbacks: 1. Ignores human factors - Considers them as machines. Ignores human requirements, want and aspirations.
2. Separation of Planning and Doing.
3. Dissatisfaction - Comparing performance with others.
4. No best way - Scientific management does not give one best way for solving problems.
Basis

Taylor

Fayol

Human aspect

Taylor disregards human elements and

there is more stress on improving
men, materials and methods

Fayol pays due regards on human element. E.g.

Principle of initiative, Espirit De Corps and
Equity recognizes a need for human relations

Status

Father of scientific management

Father of management principles

Efficiency &
administration

Stressed on efficiency

Stressed on general administration

27

Approach

It has micro-approach because it is

restricted to factory only

It has macro-approach and discuses general

principles of management which are applicable in
every field of management.

Scope of
principles

These principles are restricted to

production activities

These are applicable in all kinds of organization

regarding their management affairs

Achievement

Scientific management

Administrative management

FUNCTIONS OF MANAGEMENT
1. PLANNING means looking ahead and chalking out future courses of action to be followed. It is a
preparatory step. It is a systematic activity which determines when, how and who is going to perform a
specific job. Planning is a detailed programme regarding future courses of action. It is rightly said Well
plan is half done. Therefore planning takes into consideration available & prospective human and
physical resources of the organization so as to get effective co-ordination, contribution & perfect
adjustment. It is the basic management function which includes formulation of one or more detailed
plans to achieve optimum balance of needs or demands with the available resources.
According to Urwick, Planning is a mental predisposition to do things in orderly way, to think
before acting and to act in the light of facts rather than guesses. Planning is deciding best alternative
among others to perform different managerial functions in order to achieve predetermined goals.
According to Koontz & ODonell, Planning is deciding in advance what to do, how to do and who is to
do it. Planning bridges the gap between where we are to, where we want to go. It makes possible things
to occur which would not otherwise occur.

Steps in Planning Function

Planning function of management involves following steps:-

1. Establishment of objectives
a. Planning requires a systematic approach.
b. Planning starts with the setting of goals and objectives to be achieved.
c. Objectives provide a rationale for undertaking various activities as well as indicate
direction of efforts.
d. Moreover objectives focus the attention of managers on the end results to be achieved.
e. As a matter of fact, objectives provide nucleus to the planning process. Therefore,
objectives should be stated in a clear, precise and unambiguous language. Otherwise the
activities undertaken are bound to be ineffective.
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f. As far as possible, objectives should be stated in quantitative terms. For example,

Number of men working, wages given, units produced, etc. But such an objective cannot
be stated in quantitative terms like performance of quality control manager, effectiveness
of personnel manager.
g. Such goals should be specified in qualitative terms.
h. Hence objectives should be practical, acceptable, workable and achievable.
2. Establishment of Planning Premises
a. Planning premises are the assumptions about the lively shape of events in future.
b. They serve as a basis of planning.
c. Establishment of planning premises is concerned with determining where one tends to
deviate from the actual plans and causes of such deviations.
d. It is to find out what obstacles are there in the way of business during the course of
operations.
e. Establishment of planning premises is concerned to take such steps that avoids these
obstacles to a great extent.
f. Planning premises may be internal or external. Internal includes capital investment
policy, management labour relations, philosophy of management, etc. Whereas external
includes socio- economic, political and economical changes.
g. Internal premises are controllable whereas external are non- controllable.
3. Choice of alternative course of action
a. When forecast are available and premises are established, a number of alternative course
of actions have to be considered.
b. For this purpose, each and every alternative will be evaluated by weighing its pros and
cons in the light of resources available and requirements of the organization.
c. The merits, demerits as well as the consequences of each alternative must be examined
before the choice is being made.
d. After objective and scientific evaluation, the best alternative is chosen.
e. The planners should take help of various quantitative techniques to judge the stability of
an alternative.
4. Formulation of derivative plans
a. Derivative plans are the sub plans or secondary plans which help in the achievement of
main plan.
b. Secondary plans will flow from the basic plan. These are meant to support and expediate
the achievement of basic plans.
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c. These detail plans include policies, procedures, rules, programmes, budgets, schedules,
etc. For example, if profit maximization is the main aim of the enterprise, derivative
plans will include sales maximization, production maximization, and cost minimization.
d. Derivative plans indicate time schedule and sequence of accomplishing various tasks.
5. Securing Co-operation
a. After the plans have been determined, it is necessary rather advisable to take subordinates
or those who have to implement these plans into confidence.
b. The purposes behind taking them into confidence are :i.

Subordinates may feel motivated since they are involved in decision making
process.

ii.

The organization may be able to get valuable suggestions and improvement in

formulation as well as implementation of plans.

iii.

Also the employees will be more interested in the execution of these plans.

6. Follow up/Appraisal of plans

a. After choosing a particular course of action, it is put into action.
b. After the selected plan is implemented, it is important to appraise its effectiveness.
c. This is done on the basis of feedback or information received from departments or
persons concerned.
d. This enables the management to correct deviations or modify the plan.
e. This step establishes a link between planning and controlling function.
f. The follow up must go side by side the implementation of plans so that in the light of
observations made, future plans can be made more realistic.
2.ORGANIZING is the function of management which follows planning. It is a function in which the
synchronization and combination of human, physical and financial resources takes place. All the three
resources are important to get results. Therefore, organizational function helps in achievement of results
which in fact is important for the functioning of a concern. According to Chester Barnard, Organizing
is a function by which the concern is able to define the role positions, the jobs related and the coordination between authority and responsibility. Hence, a manager always has to organize in order to get
results.
A manager performs organizing function with the help of following steps:Identification of activities - All the activities which have to be performed in a concern have to be
identified first. For example, preparation of accounts, making sales, record keeping, quality control,
inventory control, etc. All these activities have to be grouped and classified into units.
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2. Departmentally organizing the activities - In this step, the manager tries to combine and group
similar and related activities into units or departments. This organization of dividing the whole
concern into independent units and departments is called departmentation.
3. Classifying the authority - Once the departments are made, the manager likes to classify the
powers and its extent to the managers. This activity of giving a rank in order to the managerial
positions is called hierarchy. The top management is into formulation of policies, the middle
level management into departmental supervision and lower level management into supervision of
foremen. The clarification of authority help in bringing efficiency in the running of a concern.
This helps in achieving efficiency in the running of a concern. This helps in avoiding wastage of
time, money, effort, in avoidance of duplication or overlapping of efforts and this helps in
bringing smoothness in a concerns working.
4. Co-ordination between authority and responsibility - Relationships are established among
various groups to enable smooth interaction toward the achievment of the organizational goal.
Each individual is made aware of his authority and he/she knows whom they have to take orders
from and to whom they are accountable and to whom they have to report. A clear organizational
structure is drawn and all the employees are made aware of it.
The managerial function of staffing involves manning the organization structure through proper and
effective selection, appraisal and development of the personnels to fill the roles assigned to the
employers/workforce. According to Theo Haimann, Staffing pertains to recruitment, selection,
development and compensation of subordinates.

Nature of Staffing Function

1. Staffing is an important managerial function- Staffing function is the most important
mangerial act along with planning, organizing, directing and controlling. The operations of these
four functions depend upon the manpower which is available through staffing function.
2. Staffing is a pervasive activity- As staffing function is carried out by all mangers and in all
types of concerns where business activities are carried out.
3. Staffing is a continuous activity- This is because staffing function continues throughout the
life of an organization due to the transfers and promotions that take place.
4. The basis of staffing function is efficient management of personnels- Human resources
can be efficiently managed by a system or proper procedure, that is, recruitment, selection,
placement, training and development, providing remuneration, etc.
5. Staffing helps in placing right men at the right job. It can be done effectively through
proper recruitment procedures and then finally selecting the most suitable candidate as per the
job requirements.
6. Staffing is performed by all managers depending upon the nature of business, size of the
company, qualifications and skills of managers,etc. In small companies, the top management
generally performs this function. In medium and small scale enterprise, it is performed especially
by the personnel department of that concern.
DIRECTING is said to be a process in which the managers instruct, guide and oversee the performance
of the workers to achieve predetermined goals. Directing is said to be the heart of management process.
Planning, organizing, staffing have got no importance if direction function does not take place.
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Directing initiates action and it is from here actual work starts. Direction is said to be consisting of
human factors. In simple words, it can be described as providing guidance to workers is doing work. In
field of management, direction is said to be all those activities which are designed to encourage the
subordinates to work effectively and efficiently. According to Human, Directing consists of process or
technique by which instruction can be issued and operations can be carried out as originally planned
Therefore, Directing is the function of guiding, inspiring, overseeing and instructing people towards
accomplishment of organizational goals.
Direction has got following characteristics:
1. Pervasive Function - Directing is required at all levels of organization. Every manager provides
guidance and inspiration to his subordinates.
2. Continuous Activity - Direction is a continuous activity as it continuous throughout the life of
organization.
3. Human Factor - Directing function is related to subordinates and therefore it is related to human
factor. Since human factor is complex and behaviour is unpredictable, direction function
becomes important.
4. Creative Activity - Direction function helps in converting plans into performance. Without this
function, people become inactive and physical resources are meaningless.
5. Executive Function - Direction function is carried out by all managers and executives at all
levels throughout the working of an enterprise, a subordinate receives instructions from his
superior only.
6. Delegate Function - Direction is supposed to be a function dealing with human beings. Human
behaviour is unpredictable by nature and conditioning the peoples behaviour towards the goals
of the enterprise is what the executive does in this function. Therefore, it is termed as having
delicacy in it to tackle human behaviour.
CONTROLLING consists of verifying whether everything occurs in confirmities with the plans
adopted, instructions issued and principles established. Controlling ensures that there is effective and
efficient utilization of organizational resources so as to achieve the planned goals. Controlling measures
the deviation of actual performance from the standard performance, discovers the causes of such
deviations and helps in taking corrective actions
According to Brech, Controlling is a systematic exercise which is called as a process of checking actual
performance against the standards or plans with a view to ensure adequate progress and also recording
such experience as is gained as a contribution to possible future needs.
According to Donnell, Just as a navigator continually takes reading to ensure whether he is relative to a
planned action, so should a business manager continually take reading to assure himself that his
enterprise is on right course.
Controlling has got two basic purposes
1. It facilitates co-ordination
2. It helps in planning

Features of Controlling Function

Following are the characteristics of controlling function of management32

1. Controlling is an end function- A function which comes once the performances are made in confirmities
with plans.
2. Controlling is a pervasive function- which means it is performed by managers at all levels and in all
type of concerns.
3. Controlling is forward looking- because effective control is not possible without past being controlled.
Controlling always look to future so that follow-up can be made whenever required.
4. Controlling is a dynamic process- since controlling requires taking reviewal methods, changes have to
be made wherever possible.
5. Controlling is related with planning- Planning and Controlling are two inseperable functions of
management. Without planning, controlling is a meaningless exercise and without controlling, planning is
useless. Planning presupposes controlling and controlling succeeds planning.

MASLOW THEORY OF HUMAN NEEDS

Abraham Maslow is well renowned for proposing the Hierarchy of Needs Theory in 1943. This theory
is a classical depiction of human motivation. This theory is based on the assumption that there is a
hierarchy of five needs within each individual. The urgency of these needs varies. These five needs are
as
Physiological needs- These are the basic needs of air, water, food, clothing and shelter. In other words,
physiological needs are the needs for basic amenities of life.
Safety needs- Safety needs include physical, environmental and emotional safety and protection. For
instance- Job security, financial security, protection from animals, family security, health security, etc.
Social needs- Social needs include the need for love, affection, care, belongingness, and friendship.
Esteem needs- Esteem needs are of two types: internal esteem needs (self- respect, confidence,
competence, achievement and freedom) and external esteem needs (recognition, power, status, attention
and admiration).
Self-actualization need- This include the urge to become what you are capable of becoming / what you
have the potential to become. It includes the need for growth and self-contentment. It also includes
desire for gaining more knowledge, social- service,
creativity and being aesthetic. The selfactualization needs are never fully satiable. As an
individual grows psychologically, opportunities
keep cropping up to continue growing.
According to Maslow, individuals are motivated by
unsatisfied needs. As each of these needs is
significantly satisfied, it drives and forces the next
need to emerge. Maslow grouped the five needs
into two categories - Higher-order needs and
Lower-order needs. The physiological and the
safety needs constituted the lower-order needs.
These lower-order needs are mainly satisfied
externally. The social, esteem, and self-actualization needs constituted the higher-order needs. These
higher-order needs are generally satisfied internally, i.e., within an individual. Thus, we can conclude
that during boom period, the employees lower-order needs are significantly met.
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Implications of Maslows Hierarchy of Needs Theory for Managers

As far as the physiological needs are concerned, the managers should give employees appropriate salaries to
purchase the basic necessities of life. Breaks and eating opportunities should be given to employees.
As far as the safety needs are concerned, the managers should provide the employees job security, safe and
hygienic work environment, and retirement benefits so as to retain them.
As far as social needs are concerned, the management should encourage teamwork and organize social
events.
As far as esteem needs are concerned, the managers can appreciate and reward employees on accomplishing
and exceeding their targets. The management can give the deserved employee higher job rank / position in the
organization.
As far as self-actualization needs are concerned, the managers can give the employees challenging jobs in
which the employees skills and competencies are fully utilized. Moreover, growth opportunities can be given to
them so that they can reach the peak.
The managers must identify the need level at which the employee is existing and then those needs can be
utilized as push for motivation.

Limitations of Maslows Theory

It is essential to note that not all employees are governed by same set of needs. Different individuals may
be driven by different needs at same point of time. It is always the most powerful unsatisfied need that
motivates an individual.
The theory is not empirically supported.
The theory is not applicable in case of starving artist as even if the artists basic needs are not satisfied, he
will still strive for recognition and achievement.

DOUGLAS MCGREGOR THEORY X AND THEORY Y

In 1960, Douglas McGregor formulated Theory X and Theory Y suggesting two aspects of
human behaviour at work, or in other words, two different views of individuals (employees): one of
which is negative, called as Theory X and the other is positive, so called as Theory Y. According to
McGregor, the perception of managers on the nature of individuals is based on various assumptions.
Assumptions of Theory X
An average employee intrinsically does not like work and tries to escape it whenever possible.
Since the employee does not want to work, he must be persuaded, compelled, or warned with
punishment so as to achieve organizational goals. A close supervision is required on part of
managers. The managers adopt a more dictatorial style.
Many employees rank job security on top, and they have little or no aspiration/ ambition.
Employees generally dislike responsibilities.
Employees resist change.
An average employee needs formal direction.
Assumptions of Theory Y
Employees can perceive their job as relaxing and normal. They exercise their physical and
mental efforts in an inherent manner in their jobs.
Employees may not require only threat, external control and coercion to work, but they can use
self-direction and self-control if they are dedicated and sincere to achieve the organizational
objectives.

If the job is rewarding and satisfying, then it will result in employees loyalty and commitment to
organization.
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An average employee can learn to admit and recognize the responsibility. In fact, he can even
learn to obtain responsibility.

The employees have skills and capabilities. Their logical capabilities should be fully utilized. In
other words, the creativity, resourcefulness and innovative potentiality of the employees can be
utilized to solve organizational problems.
Thus, we can say that Theory X presents a pessimistic view of employees nature and behaviour at work,
while Theory Y presents an optimistic view of the employees nature and behaviour at work. If correlate
it with Maslows theory, we can say that Theory X is based on the assumption that the employees
emphasize on the physiological needs and the safety needs; while Theory X is based on the assumption
that the social needs, esteem needs and the self-actualization needs dominate the employees.
McGregor views Theory Y to be more valid and reasonable than Theory X. Thus, he encouraged cordial
team relations, responsible and stimulating jobs, and participation of all in decision-making process.
Implications of Theory X and Theory Y
Quite a few organizations use Theory X today. Theory X encourages use of tight control and
supervision. It implies that employees are reluctant to organizational changes. Thus, it does not
encourage innovation.
Many organizations are using Theory Y techniques. Theory Y implies that the managers should
create and encourage a work environment which provides opportunities to employees to take initiative
and self-direction. Employees should be given opportunities to contribute to organizational well-being.
Theory Y encourages decentralization of authority, teamwork and participative decision making in an
organization. Theory Y searches and discovers the ways in which an employee can make significant
contributions in an organization. It harmonizes and matches employees needs and aspirations with
organizational needs and aspirations.
FREDERICK HERZBERG TWO-FACTOR THEORY OR THE MOTIVATOR-HYGIENE
THEORY
In 1959, Frederick Herzberg, a behavioural scientist proposed a two-factor theory or the motivatorhygiene theory. According to Herzberg, there are some job factors that result in satisfaction while there are

other job factors that prevent dissatisfaction. According to Herzberg, the opposite of Satisfaction is No
satisfaction and the opposite of Dissatisfaction is No Dissatisfaction.

Herzberg classified these job factors into two categories

Hygiene factors- Hygiene factors are those job factors which are essential for existence of motivation at
workplace. These do not lead to positive satisfaction for long-term. But if these factors are absent / if
these factors are non-existant at workplace, then they lead to dissatisfaction. In other words, hygiene
factors are those factors which when adequate / reasonable in a job, pacify the employees and do not
make them dissatisfied. These factors are extrinsic to work. Hygiene factors are also called as
dissatisfiers or maintenance factors as they are required to avoid dissatisfaction. These factors
describe the job environment / scenario. The hygiene factors symbolized the physiological needs which
the individuals wanted and expected to be fulfilled. Hygiene factors include:
Pay- The pay or salary structure should be appropriate and reasonable. It must be equal and
competitive to those in the same industry in the same domain.
Company Policies and administrative policies- The company policies should not be too rigid.
They should be fair and clear. It should include flexible working hours, dress code, breaks,
vacation, etc.
Fringe benefits- The employees should be offered health care plans (mediclaim), benefits for the
family members, employee help programmes, etc.
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Physical Working conditions- The working conditions should be safe, clean and hygienic. The
work equipments should be updated and well-maintained.
Status- The employees status within the organization should be familiar and retained.
Interpersonal relations-The relationship of the employees with his peers, superiors and
subordinates should be appropriate and acceptable. There should be no conflict or humiliation
element present.
Job Security- The organization must provide job security to the employees.

Motivational factors- According to Herzberg, the hygiene factors cannot be regarded as motivators.
The motivational factors yield positive satisfaction. These factors are inherent to work. These factors
motivate the employees for a superior performance. These factors are called satisfiers. These are factors
involved in performing the job. Employees find these factors intrinsically rewarding. The motivators
symbolized the psychological needs that were perceived as an additional benefit. Motivational factors
include:
Recognition- The employees should be praised and recognized for their accomplishments by the
managers.
Sense of achievement- The employees must have a sense of achievement. This depends on the
job. There must be a fruit of some sort in the job.
Growth and promotional opportunities- There must be growth and advancement opportunities in
an organization to motivate the employees to perform well.
Responsibility- The employees must hold themselves responsible for the work. The managers
should give them ownership of the work. They should minimize control but retain accountability.
Meaningfulness of the work- The work itself should be meaningful, interesting and challenging
for the employee to perform and to get motivated.
Limitations of Two-Factor Theory
The two factor theory is not free from limitations:
1. The two-factor theory overlooks situational variables.
2. Herzberg assumed a correlation between satisfaction and productivity. But the research
conducted by Herzberg stressed upon satisfaction and ignored productivity.
3. The theorys reliability is uncertain. Analysis has to be made by the raters. The raters may spoil
the findings by analyzing same response in different manner.
4. No comprehensive measure of satisfaction was used. An employee may find his job acceptable
despite the fact that he may hate/object part of his job.
5. The two factor theory is not free from bias as it is based on the natural reaction of employees
when they are enquired the sources of satisfaction and dissatisfaction at work. They will blame
dissatisfaction on the external factors such as salary structure, company policies and peer
relationship. Also, the employees will give credit to themselves for the satisfaction factor at
work.
6. The theory ignores blue-collar workers. Despite these limitations, Herzbergs Two-Factor theory
is acceptable broadly.
Implications of Two-Factor Theory
The Two-Factor theory implies that the managers must stress upon guaranteeing the adequacy of
the hygiene factors to avoid employee dissatisfaction. Also, the managers must make sure that the work
is stimulating and rewarding so that the employees are motivated to work and perform harder and better.
This theory emphasize upon job-enrichment so as to motivate the employees. The job must utilize the
36

employees skills and competencies to the maximum. Focusing on the motivational factors can improve
work-quality.
LEADERSHIP
Leadership is a process by which an executive can direct, guide and influence the behavior and
work of others towards accomplishment of specific goals in a given situation. Leadership is the ability of
a manager to induce the subordinates to work with confidence and zeal.
Leadership is the potential to influence behaviour of others. It is also defined as the capacity to
influence a group towards the realization of a goal. Leaders are required to develop future visions, and to
motivate the organizational members to want to achieve the visions
DEFINITIONS AND MEANING OF LEADERSHIP
Leadership is a great quality and it can create and convert anything. There are many definitions
of leadership. Some of the definitions of leadership are reproduced below:"Leadership" according to Alford and Beatty "is the ability to secure desirable actions from a group of
followers voluntarily, without the use of coercion".
According to Chester I Barnard, "It (leadership) refers to the quality of the behaviour of the
individual whereby they guide people on their activities in organized efforts".
According to Terry, "a leader shows the way by his own example. He is not a pusher, he pulls rather
than pushes".
According to Koontz and O'Donnell - Managerial leadership is "the ability to exert interpersonal
influence by means of communication, towards the achievement of a goal.
Since managers get things done through people, their success depends, to a considerable extent upon
their ability to provide leadership".
In the words of R.T. Livingston - Leadership is "the ability to awaken in others the desire to follow
a common objective".
According to the Encyclopedia of the Social Sciences - "Leadership is the relation between an
individual and a group around some common interest and behaving in a manner directed or determined
by him".
According to Louis A Allen - "A leader is one who guides and directs other people. He gives the efforts to his
followers a direction and purpose by influencing their behaviour".

From the above definitions we can conclude that leadership is a psychological process of influencing
followers (subordinates) and providing guidance, directing and leading the people in an organization
towards attainment of the objectives of the enterprise.
IMPORTANCE OF LEADERSHIP
Leadership is an important function of management which helps to maximize efficiency and to
achieve organizational goals. The following points justify the importance of leadership in a concern.
1. Initiates action- Leader is a person who starts the work by communicating the policies and plans
to the subordinates from where the work actually starts.
2. Motivation- A leader proves to be playing an incentive role in the concerns working. He
motivates the employees with economic and non-economic rewards and thereby gets the work
from the subordinates.
3. Providing guidance- A leader has to not only supervise but also play a guiding role for the
subordinates. Guidance here means instructing the subordinates the way they have to perform
their work effectively and efficiently.
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4. Creating confidence- Confidence is an important factor which can be achieved through

expressing the work efforts to the subordinates, explaining them clearly their role and giving
them guidelines to achieve the goals effectively. It is also important to hear the employees with
regards to their complaints and problems.
5. Building morale- Morale denotes willing co-operation of the employees towards their work and
getting them into confidence and winning their trust. A leader can be a morale booster by
achieving full co-operation so that they perform with best of their abilities as they work to
achieve goals.
6. Builds work environment- Management is getting things done from people. An efficient work
environment helps in sound and stable growth. Therefore, human relations should be kept into
mind by a leader. He should have personal contacts with employees and should listen to their
problems and solve them. He should treat employees on humanitarian terms.
7. Co-ordination- Co-ordination can be achieved through reconciling personal interests with
organizational goals. This synchronization can be achieved through proper and effective coordination which should be primary motive of a leader.
LEADERSHIP STYLES
The different types of leadership styles are:1. Autocratic or task Management Leadership,
2. Participative or democratic leadership,
3.Laissez faire or Free-rein Leadership, and
4. paternalistic Leadership

Autocratic or Task Management Leadership

The autocratic Leader gives order which he insists shall be obeyed. He determines polices for the group without
consulting them, and does not give detailed information about future plans, but simply tells the group what steps
must they take. In other words, an autocratic leader is one who centralizes the authority in himself and does not
delegate authority to his subordinates. He is dictatorial by nature, and has no regard for the subordinates. He
drives himself and his subordinates with one thought uppermost in his
mind- action must produce results. An autocratic close the entire planning and cells upon his subordinates to
execute what he has planned. An Autocratic leader operates on the following assumptions:(a) An average human being has inherent dislikes of work and will avoid it if he can.
(b) His assumption is that if his subordinate was intelligent enough, he would not be in that subordinate position.
(c) He assumes that unintelligent subordinates are immature, unreliable and irresponsible persons. Therefore, they
should be constantly watched in the course of their work.
(d) As he has no regard for his subordinates, he gets the work done by his subordinates through negative
motivation i.e. through threats of penalty and punishment.
Thus under this style all decision-making power is centralized in the leader. The autocratic leader stresses his
prerogative to decide and order and subordinates obligation to do what they are told to carry out. He does not give
subordinates the freedom to influence his behaviour.

Participative or democratic leadership

A democratic leader is one who consults and invites his subordinates to participate in the decision making
process. He gives orders only after consulting the group; sees to it that polices are worked out in group decisions
and with the acceptance of group. The manager largely avoids the use of power to get a job done. He behaves that
38

a desired organizational behaviour can be obtained if employees' needs and wants are satisfied. Therefore, he not
only issues orders but interprets them and sees to it that the employees have the necessary skill and tool to carry
out their assignments. He assigns a fair work lead to his personal and recognizes the job that is well done; there is
a team approach to the attainment of organizational goals. He recognizes human value for greater concern for his
subordinates. A participative leader operates on the following assumptions:(a)Subordinates are capable of doing work and assuming the responsibility if they are given opportunities and
incentives
(b) Subordinates are supervised, guided and aided rather then threatened and commanded to work.
(c) Mistakes are not viewed seriously. The assumption is that disciplinary action breeds discontent and frustration
among employees and creates an unhealthy work

Laissez Faire or Free-rein Leadership

A free-rein leader does not lead, but leaves the group entirely to itself. The leader avoids using power and
interest the decision making authority to his subordinates. He does not direct his subordinates and there is
complete freedom for the subordinates. Group of members work themselves and provide their own motivation.
The manager exits as a contact man with outsiders to bring for his group the information and resources it needs to
accomplish its job. A free-rain leadership operates on the following assumption:(a) He follows the rule of minimum exposure to accountability.
(b) He relieves himself of responsibilities and is ready to blame his subordinates if
something goes wrong.
(c) He has no clear idea of the goals to be attained.
(d) He is more security conscious than status conscious.
This mode of direction can produce good and quick results if the subordinates are highly educated and brilliant
people who have a will to go ahead and perform their responsibility.

Paternalistic Leadership
Under this type of leadership, the leader assumes that his function is fatherly. His attitude is that of
treating the relationship between the leader and his groups that of family with the leader as the head of the family.
The leader works to help to work to help, guide, protect and keep his followers happily working together as
members of a family. He provides them with good working condition, fringe benefits and employee services. It is
said that employees under such leadership well work harder out of gratitude.

Various approaches to management

Analysis of management from various view points have to led to different approaches. They have been
summarized as the following:
Empirical/Case Approach to management
Characteristics Knowledge based on experience through case studies. Analyzes successes and
failures.
Limitations No concrete principles. Of limited value for developing management theory.
Group Behavior Approach to management
Characteristics Importance on people as groups and their behaviour. Study of Social and
Organizational Behaviour of the people in groups.
Limitations Generally differs with management concepts, theories and techniques. Closer integration
with organization structure is needed.
Cooperative social systems approach to management
Characteristics Concept includes any cooperative group with a purpose and is concerned with both
interpersonal and group behavioural aspects.
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Limitations This approach overlooks the managerial concepts and is too broad a field for the study of
management
Interpersonal behaviour approach to management
Characteristics Concentrates on interpersonal behaviour, leadership, motivation and human relations.
Limitations This approach too like the earlier ones ignores managerial concepts such as planning,
organizing and controlling.
Systems approach to management
Characteristics According to this approach, unlike the earlier ones management concepts such as
planning organizing and controlling are given due importance. Interaction with the external environment
is also considered.
Limitations There is nothing new about this approach to the management.
Sociotechnical systems approach to management
Characteristics Technical systems such as production and office operation have great effect on social
system such as personal attitudes and group behaviour.
Limitations This concept places importance on labor and lower-level office work and ignores other
managerial knowledge.
Mathematical approach to management
Characteristics In this concept managing is treated as a mathematical processes. It is viewed as a
purely logical process and is expressed in mathematical symbols and relationships.
Limitations Managing is not a pure science and hence cannot be completely modeled.
Mckinseys 7-s framework approach to management
Characteristics The seven Ss are 1.Strategy, 2.structure, 3.Systems, 4.Style, 5.Staff, 6.Shared values
and 7.Skills.
Limitations Though the concept is of practical value, the terms used are not discussed in detail.
Contingency approach to management
Characteristics
- Managing different situations and circumstances is influenced by the organizational behaviour.
Limitations There is no one answer to a problem. There can be more than one best way to do a thing.
Calls for creativity and can be very complex.
Operational approach to management
Characteristics This approach draws concepts, techniques and knowledge from other fields and
managerial approaches. Distinguishes between managerial and non-managerial knowledge.
Limitations Does not, as some authors say, identify coordination as a separate function.
Decision theory approach to management
Characteristics Focuses on making of decisions and decision-making process
Limitations This concept is too bounded i.e. either it is too narrow and at times it is too wide.
Management consists of more than making decisions.
Managerial roles approach to management
Characteristics Original study consisted of observations of only five chief executives.
Limitations Sample was very small and some activities considered are not managerial.

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