Definition

According to Harold Koontz, "Management is the art of getting things done through and with
people in formally organized groups".

Management as both Science and Art

Aspect Management as a Science Management as an Art

Systematic Based on established principles, Involves creative thinking and
Knowledge concepts, and methods that can personal intuition to solve unique
be studied and applied problems.
systematically.
Cause and Effect Management actions often lead Requires managers to use their
Relationship to predictable outcomes (e.g., experience and creativity to adapt
leadership styles affecting to various situations and produce
employee performance). desired outcomes.
Universal Theories and principles, such as Management styles and solutions
Principles planning and organizing, are are unique and vary based on
universally applicable and can individual manager's approach and
be tested like scientific laws. organizational culture.
Experimentation Managers use data analysis and Relies on personal skills, such as
and Observation testing to solve problems and leadership, communication, and
make informed decisions. decision-making, which improve
with practice and experience.
Creativity and Uses systematic approaches and Requires creative solutions and
Innovation frameworks to solve issues. innovative thinking to address
complex, dynamic challenges.
Personalized General principles can be Managers have their own unique
Approach applied universally across styles that reflect their personal
organizations. skills and experiences, much like
an artist’s unique touch.
PRINCIPLES OF MANAGEMENT refer to the fundamental guidelines or rules that form
the basis for managing an organization effectively. These principles help managers plan,
organize, lead, and control their operations efficiently to achieve organizational goals. They
provide a framework for decision-making, problem-solving, and guiding managerial behavior
across different levels of an organization.

Nature of Principles of Management - Here is the information organized in a table format

Principle Description
Universality Principles of management are fundamental truths with universal validity.
They are applicable at all levels of any organization, just like money is
universally accepted.
Dynamic and Principles of management can be modified or adjusted to suit different
Flexible situations. They are not absolute and can be adapted to meet the specific
needs of different organizations.
Influence on Human behavior is unpredictable and cannot be tested in a controlled
Human lab. Principles of management suggest that while human behavior cannot
Behavior be controlled, it can be influenced, for example, by speaking kindly or
offering incentives like chocolates.
Contingent Management principles may or may not apply in certain situations. They
are relative, not absolute, meaning they are flexible and can change
depending on the context.
Cause and Effect The principles of management are based on the cause and effect
Relationship relationship. For example, offering incentives to employees leads to
more effective work. Causes (like incentives) and effects (like better
performance) are interlinked.
Equal All principles of management have equal importance. Each principle has
Importance its own unique significance, and none is more important than the others.

CLASSICAL AND NEO-CLASSICAL MANAGEMENT THEORIES

Aspect Classical Theory Neo-Classical Theory

View of Organization is seen as a Organization is viewed as a social
Organization machine, with a focus on system, considering human emotions
production and efficiency. and relationships.
Role of Workers Workers are considered as part Workers are seen as valuable
of the production process, akin resources, with attention to their
to cogs in a machine. emotional and social needs.
Management Autocratic management, with Democratic management, with
Style strict rules, regulations, and emphasis on employee participation
top-down decision-making. in decision-making.
Focus Emphasis on discipline, Emphasis on employee satisfaction,
 rationality, and maximum social security, and fostering a
output. positive work environment.
Worker Focus on productivity, with Focus on emotional well-being, job
Motivation little regard for individual satisfaction, and social dynamics to
emotions or social aspects. enhance motivation and productivity.
Human Aspect Personal emotions and social Workers' emotions, social needs, and
Consideration factors of workers are not group dynamics are considered
considered. important for organizational success.

CLASSICAL AUTHORS

Author Theory Contribution

Frederick Scientific Known as the father of Scientific Management, Taylor
Winslow Management introduced time studies, standardization, and a
Taylor systematic approach to labor management.
(1856–1915) His book The Principles of Scientific Management
(1911) emphasized increasing efficiency and
productivity through task specialization and the use of
scientific methods to determine the "one best way" to
perform a job.
Henri Fayol Administrative Fayol is known for developing the 14 Principles of
(1841–1925) Theory Management and identifying five primary functions
of management: planning, organizing, commanding,
coordinating, and controlling. His work laid the
foundation for modern organizational theory and
emphasized the importance of managerial practices in
achieving organizational goals.
Max Weber Bureaucratic Weber’s Bureaucratic Management Theory focused on
(1864–1920) Management a structured, formalized, and hierarchical organization
with clear rules, responsibilities, and authority. His
concept of rational-legal authority became a key element
in understanding modern organizational structure.
Frank and Time and Motion The Gilbreths expanded on Taylor’s scientific
Lillian Studies management by focusing on time and motion studies
Gilbreth to further optimize labor productivity. They emphasized
worker efficiency, fatigue reduction, and the
 improvement of work methods.
Mary Parker Human Relations Often regarded as a precursor to the human relations
Follett (1868– and Management movement, Follett introduced the concept of "power
1933) with" rather than "power over" and advocated for
participatory management and conflict resolution
through collaboration. She emphasized the importance of
human factors in management.

NEO - CLASSICAL AUTHORS

Author Theory Contribution

Elton Mayo Hawthorne Studies Mayo’s Hawthorne Studies revealed that social factors,
(1880–1949) & Human group dynamics, and employee satisfaction
significantly impact productivity. His work laid the
Relations
foundation for the Human Relations Movement,
Movement shifting the focus from mechanistic views to
understanding the psychological and social aspects of
work.
Chester Cooperation and In The Functions of the Executive (1938), Barnard
Barnard Organizational emphasized informal organizations and
communication within management. He introduced the
(1886–1961) Systems
concept of organizations as cooperative systems and
focused on leadership and incentives to maintain
cooperation among employees.
Douglas Theory X and McGregor’s Theory X and Theory Y present two
McGregor Theory Y contrasting views of human nature in the workplace.
Theory X assumes workers are inherently lazy and
(1906–1964)
need strict supervision, while Theory Y assumes
employees are motivated, seek responsibility, and can
be self-directed. His ideas had a significant influence
on human resource management and leadership styles.
Herbert A. Decision-Making Simon introduced the concept of bounded rationality,
Simon Theory which challenged the classical assumption of fully
rational decisions. He highlighted the limits of
(1916–2001)
information, time, and cognitive capabilities when
making decisions within organizations, reshaping
decision-making theories in management.
Rensis Likert’s Likert developed the Likert Scale and contributed to
Likert Management organizational psychology with his management
systems ranging from System 1 (Exploitative
(1903–1981) Systems
Authoritative) to System 4 (Participative Group). His
 work emphasized participative management and the
value of involving employees in decision-making
processes.

MODERN THEORIES

Theory Proponent Description

System Ludwig von Focuses on understanding organizations as systems of
Theory Bertalanffy
interrelated parts. It emphasizes the importance of
interactions and dependencies among these parts to achieve
overall goals. System Theory looks at how various
components of an organization interact and influence one
another.
Contingency Fred Edward Proposes that there is no single best way to lead or manage.
Theory Fiedler
Instead, the effectiveness of leadership depends on the
situation or context. Leaders must adapt their style and
strategies based on situational variables such as task
structure and leader-member relations.
Theory Z William A management philosophy that combines American and
Ouchi
Japanese practices. It emphasizes long-term employment,
collective decision-making, and a strong organizational
culture. Theory Z aims to increase productivity and
employee satisfaction by integrating these practices into
organizational life.
 SCIENTIFIC MANAGEMENT
-

PRINCIPLES OF SCIENTIFIC MANAGEMENT

Principles Description Example

Science Not Decisions should be based on Instead of making decisions based on
Rule of Thumb scientific principles rather than intuition or tradition, a manager uses
arbitrary rules or personal data analysis to decide on production
authority. methods.
Harmony Not Encourages positive relationships Managers recognize and reward
Discord between managers and workers, workers for their contributions, and
avoiding negative attitudes and workers provide feedback to improve
fostering cooperation. processes, leading to a harmonious
work environment.
Principle of Involves workers in decision- A manager asks for input from team
Initiative making processes and values their members on a project strategy, values
suggestions. Managers should their suggestions, and provides
appreciate and reward their bonuses for innovative ideas.
contributions.
Training and Focuses on investing in the A company provides regular training
Development training and development of sessions and professional
workers to help them perform at development opportunities to
their best. employees to enhance their skills and
job performance.
TECHNIQUES OF SCIENTIFIC MANAGEMENT

Technique Description Examples

Functional Supervision is divided among Planning Incharge:
Foremanship specialized foremen to enhance the - Route Clerk: Determines
quality of supervision and worker work sequence.
efficiency. Taylor suggested having 8 - Instruction Card Clerk:
specialists: 4 for planning and 4 for Prepares detailed instruction
production. cards.
- Time and Cost Clerk: Sets
time standards and records
costs.
- Disciplinarian: Maintains
discipline.
Production Incharge:
- Speed Boss: Ensures timely
work.
 - Gang Boss: Manages tools
and materials.
- Repair Boss: Maintains
machines.
- Inspector: Ensures work
quality.
Standardization Standardization fixes standards for Simplification Example:
and Simplification materials, machines, methods, and Hindustan Unilever Ltd.
of Work work conditions, while simplification reduced product varieties,
eliminates unnecessary varieties, leading to increased efficiency
sizes, and grades to reduce costs and and cost savings.
improve efficiency.
Work-study Systematic assessment of operational Method Study: Finding the
functions to improve efficiency. best way to perform a job,
Divided into four parts: e.g., storing raw materials
close to production.
Motion Study: Analyzing and
eliminating unnecessary
movements.
Time Study: Determining the
standard time for tasks.
Fatigue Study: Assessing rest
intervals needed to maintain
efficiency and health.
Method Study Aims to find the 'one best way' to Storing raw materials near the
perform a job, improving work production area to minimize
methods to minimize costs and transport time and costs.
maximize customer satisfaction.
Motion Study Analyzes various motions performed Using a movie camera or
during a job to eliminate wasteful stopwatch to observe and
movements and find the most eliminate unnecessary
efficient method. motions, increasing worker
productivity significantly.
Time Study Determines the standard time for Breaking down tasks into
completing tasks, helping to set elements and measuring the
performance expectations. Work is time taken for each to set
broken into elements, and time is performance standards and
measured for each. improve efficiency.
Fatigue Study Assesses the amount and frequency Observing workers to
of rest needed to maintain worker establish the appropriate
efficiency and health. Determines the amount and frequency of
optimal rest intervals to prevent breaks to avoid burnout and
fatigue and maintain productivity. maintain high operational
 efficiency.

CRITICISM OF SCIENTIFIC MANAGEMENT. IT IS DIVIDED INTO TWO PERSPECTIVES:

Worker's Point of View Employer's Point of View

Monotony Time-Consuming Process
Deplete Job Opportunities Expensive Affair
No Scope for Trade Unions Over-Production
Exploitation
Negative Consequences on
Workers' Health

HENORY FAYOL

Henri Fayol was a French mining engineer and management theorist, known as one of the
pioneers of modern management theory. He developed the 14 Principles of Management,
which include concepts like division of work, authority, discipline, unity of command, and
esprit de corps. Fayol also introduced the five primary functions of management: planning,
organizing, commanding, coordinating, and controlling. His ideas emphasized a top-down
approach to management, focusing on efficiency and organizational structure.

14. HENORY FAYOL PRINCIPLES OF MANAGEMENT

Henri Fayol was born in 1841 in France and is known as the "Father of Management
Studies and Thoughts." He introduced 14 principles of management.

1. PRINCIPLE OF DIVISION OF WORK

If you divide the entire work into smaller tasks and assign each person a specific task
according to their job role, the work will become much easier. Overlapping of tasks will
be eliminated, and the organization will run much more smoothly

Example - An example of dividing work into smaller tasks to eliminate overlap and
improve efficiency could be seen in a restaurant setting

Imagine a busy restaurant where the entire process of serving customers is broken down into
smaller, defined tasks:

Role Responsibilities
Host/Hostess Greets customers, manages reservations, and seats guests at their
tables.
Waiters Take orders from customers, serve food, and address any customer
Waitresses needs.
Chefs Prepare the dishes based on the orders received from the waiter staff.
Busboys/Busgirls Clear the tables and ensure that the dining area is clean and ready for
new guests.
Dishwasher Responsible for cleaning all the dishes and kitchenware used during
service.
By assigning each role specific responsibilities, everyone focuses on their task without
overlap. The waiter staffs doesn't need to worry about cleaning tables, and the chef can focus
solely on cooking rather than greeting customers. This structured division of labor ensures
smooth operations, avoids confusion, and improves customer satisfaction.

2. PRINCIPLE OF AUTHORITY AND RESPONSIBILITY

Authority means power, and responsibility means accountability. So, according to Fayol,
power and responsibility should be balanced. If you give someone more responsibility than
power, they won’t be able to perform the task effectively. Conversely, if you give someone
too much power without enough responsibility, they might misuse it. Authority must be
matched with responsibility.

Unbalanced Situations

1. More Responsibility than Authority:

 The project manager is responsible for the success of the project but has limited
authority to make decisions or allocate resources. For instance, they might need to
seek approval from senior management for every change request or additional
resource needed.
 This can lead to delays and frustration, as the project manager cannot effectively
address issues or adapt to changing requirements without the necessary authority.

2. More Authority than Responsibility:

  The project manager has the authority to make significant decisions and allocate
resources but is not held accountable for the project’s outcome. For example, they can
make decisions on budget and scope without being responsible for the project's
success or failure.
 This could lead to misuse of power or lack of accountability, as the project manager
may not be motivated to ensure the project's success, knowing they will not face
repercussions for any shortcomings.

Balancing authority and responsibility ensures that the project manager can lead effectively
and meet the project's objectives while being accountable for their decisions and actions.

3. PRINCIPLE OF DISCIPLINE
Discipline, in management, goes beyond simply following rules. It means that both
management and workers need to be committed to the organization and to each other.
This commitment involves having a shared desire to work together and advance the
organization. Discipline is essential at all levels, from supervisors to subordinates.
Example - Imagine a company called Tech Innovate, which specializes in
software development. The company has recently launched a new project aimed
at developing a cutting-edge application.
Management's Commitment: The management team at TechInnovate is committed
to the project's success. They set clear goals, provide necessary resources, and ensure
that the project's progress is regularly reviewed. They also foster an environment
where feedback is encouraged, and employees feel valued.
Employee Commitment: The software developers and project managers are equally
committed. They follow the established guidelines, adhere to deadlines, and
collaborate effectively. They take initiative to solve problems, suggest improvements,
and support each other.
Shared Desire to Advance the Organization: Both management and employees
work towards a common goal – the successful completion of the application. They
understand that their individual efforts contribute to the company's overall success.
Management recognizes and rewards hard work, while employees remain motivated
and focused on achieving the project's objectives.
4. Unity of Command: Fayol stresses that every employee should receive orders from
only one superior. If multiple people give orders, it leads to confusion and
 inefficiency. Example - Single Manager: The project team reports to one project
manager who gives clear and consistent instructions. Result: No confusion; team
members work efficiently with a clear direction.
5. Unity of Direction - Unity of Direction means that not only should there be one boss,
but the direction should also be one. That is, if one person is giving orders, there
should be a single direction. If one person says to focus on costumes, another says
focus on profit, and a third says buy expensive materials, these directions will
contradict each other. If the organization runs like this, it will never work. There
should be one goal for the entire organization, and the work should be aimed toward
that. This is called "One unit, one plan.
6. Subordination of Individual Interest - This principle says that individual interests
should be subordinated to general interests. Workers may want higher wages, but the
organization wants more work done. Fayol Baba says to bridge these two desires: if
the worker does more work, pay them more. This way, both the organization's goal
and the worker's desires are fulfilled, benefitting both.
7. Principle of Remuneration - Fayol's simple concept here is that if you want to retain
a person, you must pay them well. If you don't give a good salary, no one will stay.
An adequate salary is a must. Without it, no one will stick around. The salary should
be reasonable and appropriate.
8. Centralization and Decentralization - Centralization means all decisions are taken
by me alone, no matter what. Decentralization means allowing others to make their
own decisions for their respective tasks. Fayol said you can't take all decisions by
yourself, nor can you leave everything to others. There should be a balance between
centralization and decentralization. For important decisions, the owner should decide,
but for small matters, decentralize and let others take decisions.
9. Principle of Scalar Chain - According to Fayol, information within the organization
should flow through a scalar chain, i.e., if a subordinate wants to communicate, they
should first approach their immediate superior, who will pass it up the chain of
command. This ensures the top level gets only the most important information. But in
case of an emergency, Fayol suggested the "gang plank," where communication can
bypass levels of authority to ensure quick decisions, but this should only be done in
urgent situations.
10. Principle of Order - The principle of order doesn’t refer to giving commands; it
refers to the orderly arrangement of management. In simple terms, in your school,
 teachers are found in the staff room, the principal in the principal's office, and
students in their classrooms. Similarly, materials also have a designated place.
According to Fayol, there should be a fixed place for everything and everyone to
avoid wasting time searching for things.
11. Principle of Equity - Equity means fairness and justice for all. Mistakes are mistakes,
whether made by a junior employee or a senior one. It is important to admit when a
mistake is made, regardless of the person’s status or position, and correct it without
bias.
12. Principle of Stability of Tenure of Personnel - Fayol believed that if you frequently
transfer an employee to a new position, they will not be productive. They need time to
adjust to their new role, and only after becoming comfortable will they be able to
deliver results. Frequent transfers lead to lower productivity.
13. Principle of Initiative - The principle of initiative, or self-effort, states that lower-
level employees should be involved in decision-making. They are the ones working
on the ground and understand the quality needed to satisfy customers. By involving
them, they feel motivated and engaged. If an employee's idea is appreciated, a small
gift or applause can make them happy and lead to greater benefits for the
organization.
14. Principle of Esprit de Corps - Esprit de corps means fostering team spirit. Instead of
saying "I" will do it, we say "We" will do it. If the team works together, the
organization will perform better. When a person tries to work alone or take all the
credit, the team will fall apart, and the organization will collapse. For the success of
the organization, teamwork is essential.

MAX WEBER'S BUREAUCRACY

 Characteristic Description
Administrative A specialized group of people responsible for the management and
Class administrative tasks within an organization. This class is trained and
appointed based on merit rather than personal connections.
Hierarchy A clear chain of command where authority is distributed in levels.
Higher levels have control and authority over the lower levels, ensuring
that the organization functions in an orderly manner.
Division of Work Tasks are divided into specialized roles. Each individual or group
focuses on a particular task or area of expertise, leading to increased
efficiency and productivity.
Official Rules Established formal rules and procedures govern all operations. These
rules are designed to ensure consistency, predictability, and fairness
within the organization.
Impersonal Decisions and interactions are based on objective criteria rather than
Relationships personal relationships. This removes favoritism, ensuring that decisions
are made fairly and efficiently.
Official Record All activities, decisions, and processes are recorded in formal
documentation. This ensures accountability and provides a historical
record for reference and legal purposes.

PRINCIPLES OF BUREAUCRACY

Principle Explanation
Division of Labor Work is divided into specific tasks and roles, allowing employees to
specialize in particular areas, improving efficiency and expertise.
Authority A clear chain of command is established. Higher levels of authority
Hierarchy oversee lower levels, ensuring order, discipline, and responsibility.
Formal Rules and An organization operates on a formal set of rules and regulations,
Regulations which ensures consistency, predictability, and fairness in decision-
making and processes.
Formal Selection Employees are selected and promoted based on merit and
qualifications, rather than favoritism or personal connections,
ensuring the right fit for each role.
Impersonality Interactions and decisions within the organization are based on
objective criteria, not personal preferences, ensuring fairness and
professionalism.
Career Orientation Employees are given long-term career paths, promoting loyalty and
development within the organization, and encouraging skill growth
and upward mobility.