Management

Definition:
The primary function of management is to get people to work together for the attainment of an
organization's goals and objectives. Management is the act of getting people together to accomplish
desired goals and objectives using available resources efficiently and effectively.

It is very difficult to give a precise definition of the term 'management'. Different scholars from different
disciplines view and interpret management from their own angles. The economists consider management
as a resource like land, labour, capital and organization. The bureaucrats look upon it as a system of
authority to achieve business goals. The sociologists consider managers as a part of the class elite in the
society.

According to Harold Koontz, "Management is the art of getting things done through others and with
formally organized groups."
According to F.W. Taylor, "Management is the art of knowing exactly what you want men to do and then
seeing that they do it in the best and the cheapest way."

Nature of Management
1. Goal oriented: Management by its group effort and effectiveness tries to achieve the pre-
determined goals of the organization.
2. Group effort: The management functions cannot be performed in isolation. Management always
refers to a group of people involved in managerial activities. Hence the purpose of management
of any organization is to coordinate the group activity.
3. Continuous: It is not a one-time activity. It is a an ongoing process that operates without
interruption.
4. Social process: Management through its different activities utilizes the scarce resources which
benefits the entire society.
5. Flexibility: The principles and techniques of management are not rigid and has to change
according to the need and situation of the organization.
6. Intangible: Good management is reflected in result. It is something that cannot be touched or
seen physically.
7. Pervasive: It is not restricted to any particular organization, group, place or people. It is
universally applicable to all levels of all types of organizations.
8. Universal: The principles and techniques of management are universally applicable all over the
world.
9. Decision making: Management involves taking decisions about various matters of the
organization.
10. Tool for HR development: Management enables improvement of human resource through
creation of an overall environment for development of the same.
11. Integrated: Management integrates the various elements like man, money, machine,
materials, motivation etc. to optimize output.
12. Delegation: Management is a system which delegates authority from the top level to the lower
level of management and creates an accountability from the lower level to the top.
13. Management as a profession: Management has now emerged as a profession as managers,
to be effective, must acquire the basic professional knowledge and skill in managing, through
formal management education or management training

Importance / Objectives / Purpose of Management:

1. Achieving Group Goals: It directs group efforts towards achievement of pre-determined goals.
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. Management provides maximum utilization of scarce resources by selecting its best
possible alternate use in industry from out of various uses.
3. Reduces Costs: 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: To establish sound organizational structure is one of the
objective of management. Management fills up various positions with right persons, having right
skills, training and qualification.
5. Establishes equilibrium: It enables the organization to survive in dynamic 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. 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.

Management – Science or Art

According to the nature of management, there is a controversy that whether management is a science or
an art. This controversy is very old & is yet to be settled. It should be noted that, learning process of
science is different from that of art. Learning of science includes principles while learning of art involves its
continuous practice.

Management as a Science
Science is a systematic body of knowledge relating 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 accepted principles – Scientific principles represents basic truth about a particular field
of enquiry. These principles may be applied in all situations, at all time and at all places. 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. Management principles are also based on scientific enquiry &
observation and not only on pinion. They have been developed through experiments & practical
experiences of large no. of managers.
3. Cause & Effect Relationship – Principles of science lay down cause and effect relationship between
various variables. 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. ineffectiveness.
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 time of test. Each time these tests will give same result. Moreover
future events can be predicted with reasonable accuracy by using scientific principles. Principles of
management can also be tested for validity.

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.

Management as an Art
 Art means application of knowledge & skill to get the 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. A manager can
never be successful just by obtaining degree or diploma in management; he must have also known
how to apply various principles in real situations, by functioning as a 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. 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 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 an useful way so as to achieve desired results.
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 help in the 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 shaping the attitude and behavior of people at work
towards these desired goals.

Management as both Science and Art

Management is both an art and a science. The above mentioned points clearly reveal 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.
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.

Evolution of Management
Scientific Management
The concept of scientific management was introduced by Frederic Winslow Taylor in USA in the
beginning of 20th century which was further carried on by management thinkers Frank and Lillian Gilbreth,
Henry Gantt, George Beth etc. Scientific management was concerned essentially with improving
operational efficiency at the shop floor level. According to Taylor “Scientific management is concerned with
knowing exactly what you want men to do and then see that they do it in the best and cheapest way”.

Since Taylor has put the emphasis on solving managerial problems in a scientific way, he is
often referred to as “the Father of Scientific Management” and his contributions as “Principles of
Scientific Management”. Taylor’s contributions can be described in two parts: elements and tools of
scientific management and principles of scientific management.

Elements and tools of Scientific Management

Taylor conducted various experiments at his workplaces to find out how human beings could be made
more efficient by standardizing the work and improving the method of doing the same. These experiments
have provided the following features of scientific management:

1. Separation of planning and doing: Before Taylor’s scientific management, a worker used to plan
how the job is to be done and what instruments were necessary for it. The worker was put under a
supervisor whose job was to merely see how the workers were performing. Taylor emphasized that
planning should be left to the supervisor and worker should concentrate only on the operational
aspect of the work.
2. Functional foremanship: Separation of planning and doing resulted in development of
supervision system which could undertake planning work adequately besides keeping supervision
on workers. For this Taylor evolved the concept of functional foremanship based on specialization
of functions. All of these foremen gave directions to workers on different aspects of work. This was
however against the unity of command principle i.e. a worker should receive directions from one
supervisor only.
3. Job analysis: Job analysis is undertaken to find out the best way of doing things. The best way of
doing things can be determined by taking up motion-time-fatigue studies. Motion study involves
the study of movements in parts which are involved in doing a job and thereby eliminating wasteful
movements and performing only the necessary movements. Time study involves the determination
of time a movement takes to complete. Fatigue study shows the amount and frequency of rest
required in completing the work.
4. Standardization: As far as possible standardization should be maintained in respect of instrument
and tools, period of work, amount of work, working conditions, production etc.
5. Scientific selection and training of workers: A worker should be given work for which he is
physically and technically most suitable. Apart from selection, proper emphasis should be given on
training of workers which makes them more efficient and effective.
6. Financial incentives: Financial incentives can motivate workers to put in their maximum efforts.
Taylor himself applied the concept of differential piece rate which was highly motivating. To make
differential piece rate work Taylor has suggested that wages should be based on individual
performance and not on the basis of position occupied by the worker.
7. Economy: Apart from scientific and technical aspects, consideration should be given to economy
and profit too. For this purpose techniques of cost estimation and control should be adopted.
8. Mental revolution: Scientific management depends on the mutual cooperation between
management and workers. This requires a change in mindset of the parties from conflict to
assistance.

Principles of scientific management propounded by Taylor are:

 1. Science, not Rule of Thumb: In order to increase organizational efficiency, the ‘Rule of Thumb’
method should be substituted by the methods developed through scientific analysis of work.
Decisions should be based on scientific enquiry with cause and effect relationships.

2. Harmony, not discord: Both the management and the workers should realize the importance of
each other. In order to achieve this state, Taylor suggested complete mental revolution on the part
of both management and workers.

3. Mental Revolution: The technique of Mental Revolution involves a change in the attitude of
workers and management towards each other. Both should realize the importance of each other
and should work with full cooperation. Management as well as the workers should aim to increase
the profits of the organization.

4. Cooperation, not Individualism: This principle is an extension of principle of ‘Harmony, not

discord’ and lays stress on mutual cooperation between workers and the management.

5. Development of each and every person to his or her greatest efficiency and prosperity:
Efficiency of any organization also depends on the skills and capabilities of its employees to a great
extent. Thus, providing training to the workers was considered essential in order to learn the best
method developed through the use of scientific approach.

Fayol’s Administrative Management

The contributions of Henri Fayol, the French industrialist, are generally termed as Operational
Management or Administrative Management. Fayol looked at the problems of managing an organization
from top management point of view. He has used the term ‘administration’ instead of ‘management’,
emphasizing that there is unity of science of administration. For him, administration was a common
activity and administrative doctrine was universally applicable.

General Principles of Management

Fayol has given 14 principles of management. According to him these are neither exhaustive nor rigid. The
principles of management are as follows:
1. Division of work: Work should be divided among individuals and groups to ensure that effort and
attention are focused on special portions of the task. Fayol presented work specialization as the
best way to use the human resources of the organization.
2. Authority: The concepts of authority and responsibility are closely related. Authority was defined
by Fayol as the right to give orders and the power to exact obedience. Responsibility involves being
accountable, and is therefore naturally associated with authority. Whoever assumes authority also
assumes responsibility.
3. Discipline: A successful organization requires the common effort of workers. Penalties should be
applied judiciously to encourage this common effort.
4. Unity of command: Workers should receive orders from only one manager.
5. Unity of direction: The entire organization should be moving towards a common objective in a
common direction.
6. Subordination of individual interests to the general interests: The interests of one person
should not take priority over the interests of the organization as a whole.
7. Remuneration: Many variables, such as cost of living, supply of qualified personnel, general
business conditions, and success of the business, should be considered in determining a worker’s
rate of pay.
8. Centralization: Fayol defined centralization as lowering the importance of the subordinate role.
Decentralization is increasing the importance. The degree to which centralization or
decentralization should be adopted depends on the specific organization in which the manager is
working.
9. Scalar chain: Managers in hierarchies are part of a chain like authority scale. Each manager, from
the first line supervisor to the president, possess certain amounts of authority. The President
possesses the most authority; the first line supervisor the least. Lower level managers should
always keep upper level managers informed of their work activities. The existence of a scalar chain
and adherence to it are necessary if the organization is to be successful.
 10.Order: For the sake of efficiency and coordination, all materials and people related to a specific
kind of work should be treated as equally as possible.
11.Equity: All employees should be treated as equally as possible.
12.Stability of tenure of personnel: Retaining productive employees should always be a high
priority of management. Recruitment and Selection Costs, as well as increased product-reject rates
are usually associated with hiring new workers.
13.Initiative: Management should take steps to encourage worker initiative, which is defined as new
or additional work activity undertaken through self direction.
14.Espirit de corps: Management should encourage harmony and general good feelings among
employees.

Hawthorne Experiments and Human Relations

Elton Mayo's contribution to management theory helped pave the way for modern human relations
management methods. Based on his well-known Hawthorne experiments, Mayo's management theories
grew from his observations of employee productivity levels under varying environmental conditions. His
experiments drew a number of conclusions about the real source of employee motivation, laying the
groundwork for later approaches to team building and group dynamics. Mayo management theory states
that employees are motivated far more by relational factors such as attention and camaraderie than by
monetary rewards or environmental factors such as lighting, humidity, etc.

Elton Mayo and the Hawthorne Experiments

Mayo's reputation as a management guru rests on the Hawthorne Experiments which he conducted from
1927 to 1932 at the Western Electric Hawthorne Works in Cicero, Illinois (a suburb of Chicago). The
factory employed mainly women workers who assembled telephone cabling equipment. The aim of the
study was to establish the impact of different conditions of work on employee productivity. Initially, Mayo
examined the affect of changes in the factory environment such as lighting and humidity. He then went on
to study the effect of changes in employment arrangements such as breaks, hours, and managerial
leadership. Not only were the Hawthorne experiments the first large-scale studies of working people's
conditions ever made, they also produced a range of remarkable results that changed the face of people
management.

Although Elton Mayo and his team conducted the Hawthorne Experiments over a number of years, it is his
work with 6 women workers in the relay assembly room that made his name. Throughout the series of
experiments, one of Mayo's team sat with the girls as they worked, noting everything they did, keeping
them up-to-date with the experiment, asking for clarification, and listening to their views. The experiment
began by introducing carefully controlled changes, each of which was continued for a test period of 4 to 12
weeks.

Conclusions of the Hawthorne Experiments

It took Elton Mayo some time to work through the results of his Hawthorne experiments, particularly the
seemingly illogical results of the Relay Assembly room experiments. His main conclusion was that the
prevailing view of the time, that people went to work purely for money and a living, was deeply flawed.
Work was much more. It was first and foremost a group activity in which other people and their behavior,
be they colleagues, managers or observers, affected how well people worked. People's morale and
productivity were affected not so much by the conditions in which they worked but by the recognition they
received. The rises in productivity in the Relay Assembly Room were achieved under the interested eye of
the observers not because the conditions made the workers feel good but because the workers felt valued.

Functions / Scope of Management

Management is an all pervasive function since it is required in all types of organized effort. Thus its
scope is very large. Scope alternatively can be looked upon as the different functions of management
and can be broadly discussed under the following heads:
1. Planning
It is the basic function of management. Planning is determination of courses of action to achieve
desired goals. It deals with chalking out a future course of action & deciding in advance the most
appropriate course of actions for achievement 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. 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. The main purpose
o staffing is to put right man on right job Staffing involves manpower planning. Training and
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-ordinates for the achievement
of organizational goals.

5. Controlling
It implies measurement of accomplishment against the standards and correction of deviation if any
to ensure achievement of organizational It consists of measurement of actual performance,
comparison of actual performance with the standards and corrective action in case of deviations if
any.