1

INTRODUCTION TO
MANAGEMENT
Dr.Bharath V MFM., M.Com., Ph.D
Assistant Professor
Department of Management
Kristu Jayanti College (Autonomous)
Bengaluru

[email protected]
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Contents
• Introduction; meaning, nature of Management

• Characteristics of management.

• scope and functional areas of management.

• management as a science or art or profession.

• management and administration.

• Henry Fayol’s Principles of Management.

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LEARNING OUTCOMES
After reading this chapter, will be able to:
1. Describe the difference between managers and
operative employees.
2. Explain what is meant by the term management.
3. Differentiate between efficiency and
effectiveness.
4. Describe the four primary processes of
management.
5. Classify the three levels of managers and
identify the primary responsibility of each
group.
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L E A R N I N G O U T C O M E S (cont’d)
After reading this chapter, will be able to:
6. Summarize the essential roles performed by
managers.
7. Discuss whether the manager’s job is generic.
8. Describe the four general skills necessary for
becoming a successful manager.
9. Describe the value of studying management.
10. Identify the relevance of popular humanities
and social science courses to management
practices.
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Organizations
• Organization
• A systematic arrangement of people brought together to
accomplish some specific purpose; applies to all
organizations—for-profit as well as not-for-profit
organizations.
• Where managers work (manage)
• Common characteristics
• Goals
• Structure
• People

• https://www.infosys.com/about/management-profiles.html
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Common Characteristics of
Organizations
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People Differences
• Operatives
• People who work directly on a job or task and
have no responsibility for overseeing the work
of others
• Managers
• Individuals in an organization who direct the
activities of others
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Organizational Levels
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Identifying Managers
• First-line managers
• Supervisors responsible for directing the day-to-day
activities of operative employees
• Middle managers
• Individuals at levels of management between the first-
line manager and top management
• Top managers
• Individuals who are responsible for making decisions
about the direction of the organization and establishing
policies that affect all organizational members
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Management Defined
• Management
• The process of getting things done, effectively
and efficiently, through and with other people
• Efficiency
• Means doing the thing correctly; refers to the
relationship between inputs and outputs; seeks to
minimize resource costs
• Effectiveness
• Means doing the right things; goal attainment
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Management
• “Management is the art of knowing what do you want to
do and then seeing that it is done in the best and
cheapest way” – F.W. Taylor

• “ A set of management functions directed at the efficient

and effective utilization of resources in the pursuit of org.
goals: -- Griffin

• “Management is the process of designing and maintaining

an environment in which individuals working together in
group, efficiently accomplish selected aims”- Koontz and
Weihrich
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Efficiency and Effectiveness

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Management
Process
Activities

Management process:
planning, organizing,
leading, and controlling
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Management Process
• Planning
• Includes defining goals, establishing strategy, and
developing plans to coordinate activities

• Organizing
• Includes determining what tasks
to be done, who is to do them,
how the tasks are to be
grouped, who reports to
whom, and where
decisions are to be made
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Management Process
• Leading
• Includes motivating employees, directing the activities
of others, selecting the most effective communication
channel, and resolving conflicts
• Controlling
• The process of monitoring performance,
comparing it with goals, and
correcting any significant
deviations
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Interpersonal
• Figurehead : A figurehead is a managerial role that
involves representing an organization and communicating
its values and mission. This role is often associated with
upper management and can include legal responsibilities.
• Leader: Leadership roles are the responsibilities a leader
assumes when leading ethically and efficiently. They allow
leaders to guide their team and organization to reach their
maximum potential while inspiring loyalty and upholding
morale.
• Liaison: A liaison is a manager who connects people with
what they need, and acts as a go-between for different
teams or departments within an organization. Liaison
roles are part of the managerial classification and are
concerned with interactions between people and
managers.
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Informational
• Monitor: The monitor role in management is a
communication-based role that involves gathering
information from internal and external sources, and
keeping track of trends. Managers monitor their team's
productivity and well-being.
• Disseminator: The disseminator role is all about sharing
information with others. The manager in this role
distributes information to employees, other managers,
and stakeholders. They may also act as a conduit for
communication between different departments or teams.
• Spokesperson: you represent your organization and
convey information, such as goals or policies, to external
stakeholders. If you work within a large organization, you
may need to serve as the spokesperson of your team and
represent it during internal meetings or events.
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Decisional
• An entrepreneur's managerial role involves spotting
potential setbacks, finding new ideas to fix them, and
implementing the ideas found.
• The disturbance handler role involves the manager
mediating disputes and finding solutions for the potential
crisis in the company.
• A resource allocator is a manager who makes and
implements decisions to distribute resources and optimize
business activities.
• A negotiator in management is a person who helps
resolve business conflicts and reach solutions with
stakeholders.
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Is The Manager’s Job Universal?

• Level in the organization
• Do managers manage differently based on where they are in the
organization?
• Profit versus not-for-profit
• Is managing in a commercial enterprise different than managing in
a non-commercial organization?
• Size of organization
• Does the size of an organization affect how managers function in
the organization?
• Management concepts and national borders
• Is management the same in all economic, cultural, social and
political systems?
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Distribution of Time per Activity by Organizational

Level
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General Skills for Managers

• Conceptual skills
• A manager’s mental ability to coordinate all of the organization’s
interests and activities
• Interpersonal skills
• A manager’s ability to work with, understand, mentor, and motivate
others, both individually and in groups
• Technical skills
• A manager’s ability to use the tools, procedures, and techniques of
a specialized field
• Political skills
• A manager’s ability to build a power base and establish the right
connections
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Specific Skills for Managers

• Behaviors related to a manager’s effectiveness:

• Controlling the organization’s environment and its

resources.

• Organizing and coordinating.

• Handling information.

• Providing for growth and development.

• Motivating employees and handling conflicts.

• Strategic problem solving.

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How Much Importance Does The

Marketplace Put On Managers?
• Good (effective) managerial skills are a scarce
commodity.
• Managerial compensation packages are one measure
of the value that organizations place on them.
• Management compensation reflects the market forces
of supply and demand.
• Management superstars, like superstar athletes in
professional sports, are wooed with signing bonuses,
interest-free loans, performance incentive packages,
and guaranteed contracts.
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Different schools of thought

• Management is a process
• Social, integrating, continuous

• Management is an activity
• interpersonal, Informational, decisional,

• Management is a discipline

• Management as group
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Nature of Management

Nature

Purposiv Integrating On-going Universal Group

e activity activity activity activity activity
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Importance of Management
• Helps in achieving group goals

• Optimum utilization of resources

• Reduces costs and increase output

• Established a sound organisation

• Maintains equilibrium

• Essential for prosperity of the society

• Create synergic effect.

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Management as a Science
Science Management
Existence of systematised body of Existence of systematised body of
knowledge knowledge
Use of scientific methods of Management concepts and methods
observation which are unbiased are biased.
and objective.
Principals based on experiments Repeated experimentation in various
types of org.
Universal validity of principles. Do not have universal applicability
since their application and use has to
be modified according to given
situations.
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Management as a Art
Art Management
Art required the existence of There exist general principals for
theoretical knowledge managing various aspects of
business
The application of skill and Application of principal of
knowledge is personalised in the management is personalised in the
sense that the manner of sense that every manager has his
application differs from practitioner own approach to problem solving and
to practitioner depends upon his experience and
skill
Art involves practice of the basic Management involves practice and
principles and then infusing creativity. manager infusing creativity
creativity and developing own style and developing own style of doing.
of doing.
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Principles of Management
• Statement of fundamental truth which provide guidelines
for managerial decision-making and action.

• It act as guide for the practice of management. It helpful in

predicting and understanding the results of managerial
actions.

• Observation and experimental methods

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Nature of Management Principles

Nature of Mgt.
principles

Equal
Universal Flexible Aimed at
influencing
Cause and importance
human effect
relationship
behaviour
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Henry Fayol’s Principle of Management

• Father of modern management theory
• His career as coalminer engineer in 1860
• in French.
• He brought the enterprise from the
verge of bankruptcy to high success.
• His book industrial and General administrant
was published in 1916
• 14 principles of management
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Fayol’s Principles of Management

• 1. Division of Work

• Specialization leads to increased efficiency

and productivity. By dividing work into Division of
Work
specialized tasks, employees become more
skilled and efficient in their specific roles.

• Example: In a manufacturing company like

Task A Task B Task C
Toyota, the assembly line is divided into
specialized tasks. Each worker focuses on a
specific part of the assembly process, such Worker
as attaching wheels or installing the
dashboard. This specialization enhances Worker
efficiency and reduces production time, Worker
leading to high-quality, consistent products.
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2. Authority and Responsibility

• Authority and responsibility should be clearly
defined. Authority is the right to give orders and Manager
make decisions, while responsibility is the
obligation to complete the assigned tasks.

• Example: At Apple Inc., project managers are

Supervisor
given authority to make decisions about their
projects, including budgeting and resource
allocation. In return, they are responsible for
delivering the project on time and within budget.
This clear description ensures that managers Employee
have the necessary power to execute their
responsibilities effectively.
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3. Discipline
• Discipline is essential for the smooth
functioning of an organization. It involves
obedience, respect for agreements, and Company
adherence to rules and procedures.

• Example: Google emphasizes a culture of Code of

respect and adherence to company policies. conduct
Employees are expected to follow ethical
guidelines and company rules. Google’s focus
on maintaining a respectful and disciplined
Employee
work environment helps in fostering a positive
and productive workplace.
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4. Unity of Command
• Each employee should receive orders
from only one superior to avoid confusion
and conflicting instructions.

• Example: In McDonald’s, each crew

member reports to a single shift manager.
This unity of command ensures that
employees receive clear, consistent
instructions and reduces confusion, which
helps maintain operational efficiency and
customer satisfaction.
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5. Unity of Direction
• The organization should have a single plan
Company Goal
of action for each group or department to
ensure that all efforts are directed towards
the same goals.
D1 D2 D3
• Example: Amazon’s customer service
department operates under a unified
Team
strategy focused on customer satisfaction.
All customer service representatives follow Team
the same procedures and guidelines to
ensure a consistent and effective approach Team
to addressing customer inquiries and issues.
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6. Subordination of Individual Interests

to General Interests
• The interests of the organization should take
precedence over individual interests. Company
Employees should work towards the common Goals
goals of the organization rather than personal
gains.
Employee1
• Example: General Electric (GE) promotes a
culture where individual performance is
aligned with organizational goals. Employees
are encouraged to work collaboratively and
prioritize the company's objectives over Employee2
personal ambitions. This alignment helps
drive overall organizational success.
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7. Fair Remuneration
• Employees should be fairly compensated for Job role
their work. Fair remuneration is crucial for
motivation and job satisfaction.

Salary &
• Example: Salesforce offers competitive benefits
salaries and performance-based bonuses to
its employees. The company’s compensation
structure is designed to reward individual
and team performance, which helps in Employee
attracting and retaining top talent.
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8. Centralization and Decentralization

• The degree of centralization or
decentralization should be determined based
on the needs of the organization.
Centralization refers to concentrating decision-
making authority at the top, while
decentralization involves delegating authority
to lower levels.

• Example: Procter & Gamble (P&G) practices

a decentralized approach in its product
divisions. Each division operates with a high
degree of autonomy, allowing it to make
decisions quickly and adapt to local market
conditions. This decentralization enables P&G
to respond effectively to diverse consumer
needs across different regions.
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9. Scalar Chain
Top
• There should be a clear chain of command management
from the top management to the lowest level.
This chain ensures that communication and
authority flow smoothly throughout the Middle mgt
organization.

Lower mgt
• Example: IBM has a well-defined hierarchy,
where communication and decision-making
follow a clear chain of command. Employees
Employees
know who their immediate superior is and how
information and directives should flow up and
down the organization.
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10. Order
• Both material and human resources should be
arranged in a structured and orderly manner. Organised
workspace
This ensures efficiency and reduces confusion.

• Example: IKEA’s store layouts and inventory

Resource
management systems are meticulously allocation
organized. Products are categorized and
displayed systematically, which helps
customers find what they need quickly and
Effective
enhances operational efficiency. operations
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11. Equity
• Managers should treat employees with
fairness and kindness. Equity involves fairness Fair
treatment
in treatment and respect for employees’
dignity.

Equal
• Example: Microsoft fosters an inclusive opportunities
culture where employees are treated fairly
regardless of their background. The company
has policies in place to ensure equitable
treatment and support for all employees, which Employees
helps in creating a positive and inclusive work
environment.
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12. Stability of Tenure of Personnel

• High employee turnover can disrupt operations
and affect performance. Stability in employment Low
turnover
is essential for maintaining efficiency and
continuity.

Experienced
• Example: Southwest Airlines emphasizes workforce
employee retention and job stability. The
company’s focus on creating a positive work
environment and offering career development
Consistent
opportunities helps in retaining employees, performance
which contributes to consistent and high-quality
customer service.
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13. Initiative
• Employees should be encouraged to take Encourageme
initiative and contribute ideas for nt of ideas
improvement. Encouraging initiative leads to
innovation and growth.

Innovative
• Example: 3M encourages employees to solutions
pursue their ideas and projects through its
“15% Rule,” which allows employees to spend
15% of their time on projects of their
choosing. This policy has led to innovations
like Post-it Notes and has contributed to the Employee
company’s ongoing success.
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14. Esprit de Corps

Team spirit
• Promoting team spirit and unity among
employees helps in achieving
organizational goals and improving morale.

Collaboration
• Example: Google’s emphasis on esprit de and unity
corps contributes to a highly collaborative
and innovative work environment, with
employees feeling a strong sense of
belonging and commitment to the company. Improved
morale
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Case Study Overview

• Company Profile: TechInnovate Inc.

Industry: Technology and Software Development

Size: Medium-sized enterprise with 250 employees

• Background: TechInnovate Inc. was founded to develop

innovative software solutions for small businesses. As the
company expanded rapidly, it faced challenges related to
project management, employee performance, and
strategic planning.
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Key Concepts in Management

• Management at TechInnovate involves planning,

organizing, leading, and controlling resources to deliver
high-quality software products to clients.

• The leadership team must align all efforts toward

achieving business objectives.
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Nature of Management
• Goal-Oriented: TechInnovate aims to increase market
share by 20% over the next year.
• Integrative Process: Different departments (e.g.,
development, marketing, and sales) must collaborate to
achieve common goals.
• Dynamic Function: The management team regularly
adapts strategies based on market trends and customer
feedback.
• Universal: The management practices implemented at
TechInnovate can be applied to various organizations
within the tech industry.
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Characteristics of Management
• Multidisciplinary: TechInnovate’s managers utilize
knowledge from finance, marketing, and technology to
make informed decisions.
• Continuous Process: Management practices are
continuously reviewed and improved based on
performance metrics.
• Intangible: Success is measured through improved client
satisfaction and employee morale, which are less tangible
than financial metrics.
• Group Activity: Projects involve teamwork, with different
roles contributing to a shared outcome.
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Scope of Management
• At TechInnovate, management encompasses various
functions:
• Strategic Management: Formulating long-term plans for
growth and innovation.
• Operational Management: Overseeing daily software
development processes.
• Human Resource Management: Hiring skilled
developers and providing ongoing training.
• Financial Management: Budgeting for projects and
managing expenditures.
• Marketing Management: Developing strategies to
promote software products to target audiences.
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Management as a Science and Art

• Science: The company relies on data analytics to inform

decisions, demonstrating management as a science.

• Art: Managers use creativity and interpersonal skills to

motivate teams and solve problems.
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Management and Administration

• management focuses on executing the operational

aspects, administration at TechInnovate involves setting
company-wide policies and ensuring compliance with
industry regulations.

• For example, the administration team develops policies

regarding software security protocols.
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TechInnovate’s management practices

reflect Fayol’s 14 principles:
• Division of Work: Teams are specialized in different
areas (e.g., coding, testing).
• Authority and Responsibility: Managers are responsible
for their teams’ outputs.
• Discipline: The company fosters a culture of respect and
accountability.
• Unity of Command: Employees report to one manager to
avoid confusion.
• Unity of Direction: All departments work towards the
common goal of product launch.
• Subordination of Individual Interest: Team goals are
prioritized over personal agendas.
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• Remuneration: Competitive salaries are offered to attract

and retain talent.
• Centralization: Decision-making is primarily centralized
to maintain consistency.
• Scalar Chain: A clear hierarchy exists, with defined roles
and responsibilities.
• Order: Processes are standardized to ensure efficiency.
• Equity: Fair treatment of employees fosters a positive
work environment.
• Stability of Tenure: Efforts are made to reduce turnover
and promote job security.
• Initiative: Employees are encouraged to propose
innovative ideas for product development.
• Esprit de Corps: Team-building activities enhance
collaboration and morale.
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Case analysis
• Question 1:

• Rajeev is a middle lever manager. He keeps all his

subordinates under a lot of discipline. His employees
however complain of wastage of time and efforts as they
feel that nothing is being assigned in a proper way and a
proper place, also no proper schedule is made for
working.

• Which principle of management is violated here?

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• Answer:

• The principle of management which is violated here is the

Fayol’s principle of ‘order’.

• Fayol’s principle of order says that everything has a place

and everything should be at its place.
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Question 2
• A company which takes care of the fact that the
confidence of the employees should always be at its
peak. For this reason they give surety to their employees
for employment for a minimum fixed tenure of time.

• Which principle of management is followed here?

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• Answer:

• The principle of management which is followed here is

‘stability of personnel’.
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Question 3
• A floor manager of a Mall is very capable as he utilises all
the functions of management. He lays stress on
developing mutual trust and spirit of cooperation amongst
the employees. Under his guidance the employees admit
that they learn a lot and are able to meet their targets.
This has led to increase in their salaries.

• Identify the principle of Fayol followed by the floor

manager in the above case.
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Question 4
• The plant superintendent of a company is very sad. When
he was on leave he was expecting his subordinates to
take the remaining work to the finish. However he finds a
new way of dealing with this problem. He develops a
system of suggestion building from the side of workers.
For this a suggestion/complain box is to be kept where
the workers can drop their advice and hence take steps
from their side.

• Which principle of management has been implemented

here off late by the plant superintndent?
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• Answer:

• The principle of Fayol—’initiative’ was initially not

followed and the establishment of suggestion/complaint
box is a step in following it.
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Question 5
• Every year a meeting is organized in the lawns of the
owner of a company. In this meeting the owner of the
company grants some funds for the benefit of the families
of the employees. The employees on the other hand
never resist any change or put excessive demands. The
general environment in the company is very supportive to
the employees. The employee turnover ratio is very low.

• Which principle of management will be easily followed

here?
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Answer
• Since the employee turnover ratio is low the principle of
management which must have been followed is ‘stability
of personnel’.

• Whenever there is violation of this principle of Fayol the

employee turnover ratio increases. The increased
employee turnover ratio is not good for an organisation
and should be minimised.
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Question 6
• Ramesh is the owner of a printing press. The size of his
organisation has increased during the recent past. There
are many employees who work in his organisation. The
organisation is considered good and has earned a lot of
reputation in the market. However when it comes to
making key decisions in the organisation related to many
things he never considers the opinions of his
subordinates. Even though the size of the organisation
has increased yet he tries to take all the key decisions on
his own.

• Which principle of Fayol has been violated by him?

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Answer
• The principle of Fayol which has been violated here is
‘Centralisation and Decentralisation’.

• This principle explains the need of balance between

Centralisation and Decentralisation.

• He is making all the decisions on his own and he is not

giving any decision making authority to his subordinates
so he is not following this principle.
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Question 7
• Mohan works on the floor of a mall as a manager. He is
very hard working but is unable to produce results for his
organisation. His target for last month was a sale of 10
lakh rupees from his floor. However by the end of the
month the sale was only 8 lakh rupees. He is very regular
and takes all the necessary steps to complete the target.
However his staff is not as competent as he himself is.
When he tries to take action against disobedient
employees the top management doesn’t allow him to do
so. They haven’t given him the power to fire employees or
take any strict action against them.

• Which principle of Fayol is violated here by the

Organisation?
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Answer
• The principle of Fayol which is violated here is ‘Authority
and Responsibility’.

• The amount of responsibility put on the shoulders of the

floor manager is not in proportion to the amount of
authority given to him. He can’t take any strict action
against his subordinates.
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Question 8
• Rohan and Amit are working in the purchase department
of a company. Rohan is the brotherin-law of the managing
director of the company whereas Amit has been recruited
from an external source. They both have been performing
below average for the last couple of months. Many people
in the organisation talk about their lack of responsibility.
When the managing director of the company came to
know about their irresponsible behaviour he immediately
suspended Amit but did not take any action against
Rohan.

• Identify the principle of Fayol which has not been followed

by the managing director in the above case.
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Question 9
• Aditi who is heading the campus recruitment program of
the firm that she is working in, gets an immediate order
from the marketing head of the organisation. Mr. Rupesh
asks her to hire only those candidates who have two
years experience in the field of marketing and offer them a
higher package. Moments later when she is about to enter
the campus she gets another call from the HR head who
asks her to hire candidates with zero experience. He
gives her the logic that such candidates would be
expecting lower packages in comparison to the
candidates having experience in the industry.

• Which principle of Fayol stands violated here?

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Answer
• The principle of Fayol which is violated here is ‘Unity of
command’.

• The Unity of command states that an employee should

take orders only from one boss.
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Question 10
• EEVEE Vehicles is a vehicle manufacturing company. The
company has the same unit producing both scooters and
cars. This leads to confusion among the employees
regarding the reporting as well as differentiation of work.

• Which principle of Fayol is violated here? Why? State the

principle.
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Answer
• The principle of Fayol which is violated here is ‘Unity of
Direction’.

• Unity of Direction is violated here as there should have

been separate departments for the two types of vehicles.
This principle says that there should be one boss and one
plan.