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Definition
• Management can be defined as the process of administering and
controlling the affairs of the organization, irrespective of its nature, type,
structure and size. It is an act of creating and maintaining such a
business environment wherein the members of the organization can work
together, and achieve business objectives efficiently and effectively.
• According to Frederick Winslow Taylor, – “Management is the art of
knowing what you want to do and then seeing that you do it in the best
and the cheapest way.“
• According to Harold Koontz, – “Management is the art of getting things
done through others and with formally organized groups.

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Characteristics of Management

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MANAGEMENT AS SCIENCE OR ART
 In order to understand whether management is a science or
an art, it is important to first understand what constitutes
science and what can be termed as art.
 Science is a systematic body of knowledge that is developed
through observation and experimentation, and can be
verified.
 Art is a systematic application of a skill or knowledge for the
accomplishment of results. It represents the methods or
ways of doing specific things to effect change and
accomplish results through deliberate efforts.

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Management as an Art
1. Personal Skill: Management is an art as a manager has to use
his personal skill, knowledge and ingenuity in solving many
complicated problems on day-to-day basis.
2. Practical Knowledge: Management does not merely mean the
systematic documentation of principles, but it is the application of
these principles that makes it effective and useful.
3. Results-oriented: Management is concerned with the
accomplishment of objectives and has a result-oriented approach. It
has to ensure that the set standards are attained by directing people
towards the accomplishment of desired results.

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4. Creativity: Every art has an element of creativity.
Management is one of the most creative arts as it is
concerned with getting the work done through others by
motivating them and coordinating their efforts in an innovative
manner.
5. Regular Practice: Like an artist, a manager also makes an
attempt to attain higher and higher goals and perform things in
an even better manner. This efficiency and effectiveness is
attained through regular practice.

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Management as a Science
1. Systematic Body of Knowledge: Management is an organised
body of knowledge built up by management practitioners, thinkers
and philosophers by conducting extensive empirical research and
verification of the same over the years.
2. Cause and Effect Relationship: Many principles of
management establish a cause and effect relationship. These
principles have been verified through empirical research.
3. Continuous Observation: The principles of management have
been developed on the basis of continued observations by many
theorists and practitioners over a period of years.

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4. Validity and Predictability: The principles of management
have been repeatedly tested through practical research to
verify their validity, reliability and replicability.

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Management thoughts: Empirical
Approach
 The empirical approach in management is based on the study of
the experiences of managers. It aims to learn from the success
and failure stories of managers and transfer the knowledge to
practitioners and students. It is also related to evidence-based
management, which uses empirical data for better decision-
making. The empirical approach is also known as the
management by customs school or the case study approach.

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Scientific Management
 The scientific management approach was advocated by Fredrick
W. Taylor at the end of the 19th century and the beginning of the
20th century to improve the labour productivity by analysing and
improving the workflow process.
 This approach focuses on improving organisational productivity by
developing an appropriate man-machine relationship. It
emphasises that jobs should be designed in a manner that they
economise on time, human energy and other productive
resources. Each worker needs to have a specified, well-controlled
task that can be performed as instructed by following clearly laid
out procedures and methods with no exceptions. Taylor’s scientific
management treatise consisted of the following principles

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 1. Scientific Job Analysis: It includes replacing the rule-of-thumb work
methods with methods based on measurement and scientific study of
various tasks and providing detailed instructions and supervision to each
worker about how to perform each discrete task.
 2. Scientific Selection and Training of Personnel: Select the persons
who are right-fit for a job and then train and develop them to perform that
job efficiently and effectively.
 3. Management Cooperation: To inculcate harmony between
management and workers while performing group action to achieve
cooperation instead of individualism.
 4. Functional Supervising: Divide work between managers and
workers in such a manner that managers focus on planning the work and
supervising it, whereas workers focus their energy on carrying out the
assigned tasks.

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 5. Standardization: Firstly, an attempt has to be made to identify one
best way of doing a task and then standards should be developed with
respect to its execution. Uniformity of tools, practices, procedures and
processes should be ensured in the task execution so that the entire
organization adopts a uniform ‘one best way’ to do that task.
 6. Financial Incentive: Management should provide adequate
financial incentives that are linked with the output of workers. This
approach believes that workers would act in a rational manner and put
in the optimum level of energy and commitment to attain additional
financial rewards.

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Advantages of Scientific Management
 Scientific management made a significant contribution in the development of
efficient production methods, which led to major gains in productivity.
 The systematic and rational approach of determining the best way to do an
individual task was an early proponent of quality standards.
 Scientific management is based on the philosophy that measurement
enables improvement.
 It advocates direct reward mechanism for workers rather than the end-of-
year profit sharing schemes.
 It led to improvement in the living standards of workers through higher wages
on the one hand and the availability of goods at lower prices on the other.

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Criticism of Scientific Management
 a. By insisting on one best way of doing a work, scientific management ignored
the creativity and innovation of the workers while on job.
 b. In the name of increasing the productivity and improvement in the standard of
work, the workers were reduced to a cog in the machine.
 c. Analysis of the task in the job led to work getting fragmented with narrow
specialization. The result was on the mechanical way of conducting a
particular task.
 d. The management emphasized on the design and planning of the job, ignored
the worker and his experience, thus making it repetitive and boring.
 e. The over emphasized practice of the rule of thumb methods made the workers
feel insecure in the name of scientific standards given by the management.

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Henry Fayol’s Administrative
Management
 Henry Fayol is regarded as the father of modern management theory.
He developed a conceptual framework for studying management by
dividing industrial activities into six groups: Technical, Commercial,
Financial, Security, Accounting and Managerial.
 He further identified five managerial functions to perform these industrial
activities as: Planning, Organizing, Commanding, Coordinating and
Controlling.
 Fayol was the first management thinker to recognize the need for
teaching of management. The 14 principles of management, outlined by
Fayol in his book General and Industrial Management, are presented
below

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 Division of Work: Specialization of work results in improvement in the
efficiency of operations.
 Coupling of Authority and Responsibility: Authority is defined as ‘the
right to give orders and the power to extract obedience’. Responsibility
should be coupled with the level of authority to create a degree of
accountability. Appropriate amount of authority needs to be provided to
enable the execution of responsibility.
 Discipline: Discipline and order are extremely important if the work has to
be executed in an organizational setting.
 Unity of Command: Employees should receive orders from only one
superior.
 Unity of Direction: This principle states that group activities should be
coordinated through a single head and a single plan of action.

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 Subordination of Individual Interests to General Interests: The
organization should make an attempt to integrate the individual’s interest
with organizational interest, and in the situation of a conflict between the
two, the organization’s interest should be given precedence.
 Remuneration of Personnel: Employees should be paid a fair
compensation for their contribution in achieving organizational goals.
Additional incentive should be provided for the additional effort undertaken
by employees.
 Centralization: Only limited authority needs to be provided to lower level
employees to make operational decisions, whereas the majority of authority
should be with the top management to make all major policy decisions.
 Esprit de Corps: This principle is based on the philosophy that ‘in union
there is strength’. It lays emphasis on the spirit of camaraderie or
companionship for developing effective teamwork and coordination.

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 Scalar Chain: It represents a chain of hierarchical relations from the topmost
superior to the lowermost rank in an organization outlining how the
communication will flow in the organization.
 Order: In order to attain optimum level of efficiency, it is vital that the right set
of people and material are available at right places at the right time.
 Equity: Managers should be fair and just in dealing with one and all to obtain
devotion and loyalty from their subordinates.
 Stability of Tenure of Personnel: Managers should try to minimize the
employee turnover and build long-term commitment and a sense of
belongingness among their subordinates.
 Initiative: Managers should encourage their subordinates to be innovative and
initiate new ideas while executing plans. In order to create an environment in
which employees come forward to show initiative, a manager needs to
develop some acceptance for mistakes that might happen while employees try
to be innovative.

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 Fayol was the first thinker to outline the following qualities that
a manager should ideally possess:
 (a) Physical qualities of health and energy.
 (b) Mental qualities to understand, learn, adapt and deliver
judgement.
 (c) Moral qualities like desire to take initiative, willingness to
accept, sense of responsibility, feeling of loyalty and dignity
 (d) Proper educational qualification.
 (e) Specialized knowledge about a particular function of
management.
 (f) Experiential knowledge from the past work

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Social System Approach
 This approach, propagated in the early 1960s, believed that
organization is an open system and its components are interrelated
and interdependent, which are functioning as a whole.
 Business too is a kind of an open system that interacts with its
environment. It is composed of inputs from the environment
(material or human resources), transformation processes to convert
inputs into finished goods (technological and managerial
processes), outputs of those finished goods offered to the
environment for a consideration (products or services) and
feedback or response (reactions from the environment).

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 According to this approach, an organized enterprise cannot exist in
isolation, rather it is dependent on its external environment; it is a part of
larger systems such as the industry, the economic system and the society
to which it belongs. Even the subsystems within an organization, like
departments, strategies, policies, etc. are related with one another. Any
modification in one subsystem has an effect on one or more subsystems.
The organization system is goal-oriented whose subsystems derive their
goals from organizational goals on the basis of logical and rational thinking.
 The systems theory focuses on the design of the whole system as distinct
from the design of its components or subsystems. The synergistic
characteristic of the systems approach believes that the total effect is
geater than the sum of the effects of the parts taken independently.

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 The advantage of the systems approach is that it lays emphasis on the
interdependencies and interactions of systems and subsystems. But it also
has the following disadvantages
 The systems approach of management studies the organization at a
philosophical level.
 This approach treats all organizations as same.
 It fails to bring in any new or innovative techniques into the fi eld of
management.

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Decision Theory Approach
 The Decision Theory Approach is the approach which helps the
manager to take the effective decision in order to grow his business.
Decision theory approach uses logical concepts to take the decision.
When managers will calculate risks and uncertainties, that time he
can take the positive decision that will affect his business.
 The managers should take the decision on the basis of facts as well
as on the pros and cons. Because the facts help the managers to
understand the risks level, if the risks level is high then the manager
will not take that decision, if the risks level is low then the manager
can take the decision.

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Types Of Decision Making In
Management
 Programmed and Non-Programmed Decisions
 Programmed decisions are those made with some habit, rule or procedure. Non-
programmed decisions are those that deal with unusual or exceptional problems.
 Organizational and Personal Decisions
 Organizational decisions are the decision that can be take in an official capacity that
would be delegated to others. Personal decisions are the decision that one can take it
on his individual capacity, it would not be delegated to others.
 Major and Minor Decisions
 The major decision means that effects the overall business. i.e Buying a new
manufacturing unit. The major decision takes by the top executives of the organization.
The minor decisions mean that does not affect the overall activity of the business. i.e
buying office superintendent.

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Importance Of Decision Making In
Management
 Decision-making is the best selective process, it gives the best possible
alternative.
 It calculates risk and analysis the all possible alternatives.
 It is a continuous process which runs until the organizations run.
 It is a mental process it involves deep thinking.
 It’s main aim to achieve organizational goals.
 It also involves a certain commitment.
 Improves the efficiency of the manager.

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Steps Of Decision Theory Approach
 Recognize and Identify the decision situation
 Before taking any decision the manager should know and understand the situations
that will create after taking the decision.
 Identify Alternatives Solutions
 The Manager should also identify the alternative solution of decision that may help the
Manager in the future. The decision theory helps to find out alternative solutions of the
problems.
 Evaluate Each Alternative Solutions
 After identifying the alternative solutions the manager should evaluate each solutions
because when the manager evaluate alternative solutions. It helps to come at effective
solutions.

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Steps Of Decision Theory Approach
 Implement Alternative Solutions
 The final step is to Implement alternative solutions to examine the
decision. Then the manager should take the final and make sure the
final outcome.

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introduction to Principles of Management

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