Sourabh Gula

Assistant Professor
(RGOI C& M DEPT.)

UNIT 1
Introduction : Concept, nature, process, and significance of management; management roles (Mintzberg); An overview offunctional
areas of management; Development managementthought; Classica and neo-classical systems; Concept approaches.

MANAGEMENT
Definition:
According to Harold Koontz, "Management is an art of getting things done through and with the people in formally organized
8roups. It is an art of creating an environment in which people can perform and individuals and can co-operate towards attainment
of group goals". According to F.W. Taylor, "Management is an art of knowing what to do, when o do and see that it is done in the
best and cheapest way". Management is a purposive activity. It is something that directs group efforts towards the attainmert of
certain pre determined goals. It is the process of working with and through others to effectively achieve the goals of the
organization, by efficiently usinglimited resources lin tne changing world. Of course, these goals may vary from one enterprise to
another. E.g: For one enterprise it may be launching of new products by conducting market surveys and for other it may be prchi
maximization by minimizing cost. Management involves creating an internal environment: It is the nanagement which puts rto
use the various factors of production. Therefore, it is the responsibility of management to create such conditions which are
conducive to maximum efforts so that people are able to perform their task efficiently and effectively. It includes ensuring
availability of raw materials, determination of wages and salaries, formulation of rules & regulations etc.
Therefore, we can say that good management includes both being effective and efficient. Being efective means doing the
appropriate task i.e., fitting the square pegs in square holes and round pegs in round holes. Being efficient means doing the task
correctly, at least possible cost with minimum wastage of resources.

Characteristics or Nature of Management:

Management is Goal-Oriented:
The success of any management activity is accessed by its achievement of the predetermined goais or bjective.
Management is a purposeful activity. It is a tool which helps use of human & physical resources to fulfill the pre-seterminecd
goals. For example, the goal of an enterprise is maximum consumer satisfaction by producing qu:lity gods and at
reasonable prices. This can be achieved by employing efficient perscns and making better use of scarce resource
Management integrates Human, Physical and Financial Resources
In an organization, human beings work with non-human resources like machines. Materials, financial assets, buikngs etc.
Management integrates human efforts to those resources. It brings harmony among the human, physical andrar c
resources.
Management is Continuo us:
Management is an ongoing process. It involves continuous handling of problems and issues. It is concerned with iden
theproblem and taking appropriate steps to solve it. For achieving this target various policies have to be framed outsi
not the end. Marketing and Advertising is also to be done. For this policies have to be again framed. Hence this an
ongoing process.
Management is all Pervasive:
Management is required in all types of organizations whether it is political, social, cultural or business because it helps ad
directs various efforts towards a definite purpose. Thus clubs, hospitals, political parties, colleges, hospitals, business firs
all require management. Whenever more than one person is engaged in working for a common goal, nanagement
necessary. Whether it is a small business firm which may be engaged in trading or a large firm like Tata Iron & Sted
management is required everywhere irrespective of size or type of activity.
Management is a Group Activity:
with groups. It involve the use o
Management is very much less concerned with indiviaual's efforts. It is more concerned
of management of ABC & Co. is good refers to a group ul persor:, minaging the
group effort to achieve predetermined goal
enterprise
Organized Activities:
scivtis
activities. Groups of people cannot be involved in the performance
Management is a process of organized
without organized activities. Management comes into existence where a group of people are involved in ahievi" g
structured organization ioa
common objective. The organized activities may take a variety of forms ranging from a tightly
loosely-knit organization.
Existence of Objectives:

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 Sourabh Guha
Assistant Professor
(RGOI-C&M DEPT.)
ne existence of objectives is a basic criterion of every human organlzation. The organizational objectives are the desirnd
state of affairs which an organization attempts to reallze. This reallzatton of objectives ls sought through thecoordinatrd
efforts of the people
constituting
an organization.
Decision-making:
Management process involves decision maklng at all levels. Decislon-making descrlbes the process by which a couroe of
action is selected as the way to deal with a specific problem. If there is only one alternative, thequestion of decision makir g
does not arise. The quality of alternatives which a manger selects determines the organization's perforniance, and the
future of the organization.
Relationship among resources:
The essence of management is integration of various organizational resources. Resources include money, machine,
materials, and people. Management is concerned with thee proper utilization of human resources which, in turn, utilize

other resources.
Working with and through people:
Management involves working with people and geting organizational objectives achieved through them. Working through
people is interpreted in terms of assigning activities to subordinates.
Multidisciplinary:
Management is multidisciplinary because it includes knowledge/information from various disciplines- economics, statistics,
math, psychology, sociology, ecology, operations research, history, etc. Management integrates the ideas and concepts
taken from thesedisciplines and presents newer concepts which can be put into practice for managing the or ganizaticn:.
Management is dynamic:
Management has framed certain principles, which are flexible in nature and change with the changes in the envi onment in

which an organization exits.

Relotive, Not Absolute Principles:
to the need of the organ:ation. A
Management principles are relative, not absolute, and they should be applied according
particular management principle has different strengths in different conditions. Therefore, principles should e applie
according to the prevailing conditions.
Management Science or Art:
Management likes other practices- whether medicine, music composition, or even accountancy- is an art. it is know-how.
Yet managers can work better by using the organized knowledge about management. It is this knowledge that constitutes
science. Thus, managing as practice is an art; the organized knowledge underlying the practice may be referred to as

science.
Management as Profession:
Management has been regarded as a profession by many while many have suggested that it has not achieved the status of
a profession. Schein concluded that by some criteria management is indeed a profession, but by other criteria it is not.
Today we can see many signs that management is working towards increased professionalism.
Management is Universal:
Management is a universal phenomenon. However, management principles are not universally applicable bui ate to be
modified according to the needs of the situation.

MANAGEMENT AS A SCIENCE AND AS AN ART AND AS BOTH

Management as a Science:
Science is a systematic body of knowledge pertaining to a specific field of study that contains gerneral facts which expi.ns
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 characterlzed by following main features:

Universally acceptance principles:
Scientific principles represent basic truth about a particular field of enquiny. These principles may be applied in all ituations, at all
time &atall laces. E.g. -law of gravitation which can be aplied in all countries irrespective of the time. Management also contains
some fundamental principles which can be applied universally ike the Principle of Unity of Command i.e. one man, one bts. This

principle is applicable to all type of organization- business or non business.

Experimentation & Observation:
Scientific principles are derived through scientific investigation & researching i.e. they are based on logic. E.g. the principle that earth
goes round the sun has been scientifically proved. Management principles are also based on scientific enquiry & observation and not
only on the opinion of Henry Fayol. They have been developed through experiments & practical experiences of large ne
managers. E.g. it is observed that fair remuneration to personal helps in creating a satisfied work force.

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 Sourabh Guha
Assistant Professor
(RGOI-C&M DEPT)
f
Cause&Effect Relationship:
SCience lay down cause and effect relationship between various variables. E.g. when metals are heated, they are
Apanded. The cause is
ne same is true for
heating result is
&
expansion.
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
.e. in
effectiveness. Similarly if workers are given bonuses, fair wages they will work hard but when not treated in fair andeasily
just
manner, reduces productivity of organization.
Test of Validity &Predictability:
Validity of scientific principles can
be tested at any time or any number of times i.e. they stand the test of time. Each time these
will give result. Moreover future events can be predicted with reasonable
same
test
accuracy by using scientific principles. E.g. H, &
0, will always give H,O. Principles of management can also be tested for validity. E.g. principle of unity of cornmand can be tested by
comparing two persons - one having single boss and one having 2 bosses. The performance of 1st person will be better than 2nd

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 tumar
beings and it is very difficult to predict their behavior accurately. Since it is a social process, therefore it falls in the area of
sciences. It is a flexible science & that is why its theories and principles may produce different results at different tirnes and
social
therefore it isa behavior science. Ernest Dale has called it as a
Soft Science.
Management as an Art:
Art implies application of knowledge & skill to trying about desired results. An art may be defined as personalized application of
general theoretical principles for achieving best possible results. Art has the following characters
Practical Knowledge:
Every art requires practical knowledge therefore learning of theory is not sufficient. It is very important to know practical application
of theoretical principles. E.g. to become a good painter, the person may not only be knowing different color and brushes but
different designs, dimensions, situations etc to use them appropriately. A manager can never be successful
just by obtaining degree
or diploma in management; he must have also known how to apply various principles in real situations by functioning in cagacity of
manager.
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 vhy
the level of success and quality of performance differs from one person to another. E.g. there are several qualified painters but M F
Hussain is recognized for his style. Similarly management as an art is also personalized. Every
manager has his own way of managin
things based on his knowledge, experience and personality, that is why some managers are known as good managers (like Adity?
Birla, Rahul Bajaj) whereas others as bad.
Creativity:
Every artist has an element of creativity in line. That is why he aims at producing something that has never existed before woich
requires combination of intelligence & imagination. Management is also creative in nature like any other art. It combines hur.an and
non-human resources in useful way so as to achieve desired results. It tries to produce sweet music by combining chords in an
efficient manner.
Perfectionthroughpractice:
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 joo of
managing
Goal-Oriented:
Every art is result oriented as it seeks to achieve concrete results. In the same manner, management is also directed towards
accomplishment of pre-determined goals. Managers use various resources like men, money, material, machinery & methods to
promote growth of an organization.
Thus, we can say that management is an art therefore it requires application of certain principles rather it is an art of
highest orce
because it deals with molding the attitude and behavior of people at work towards desired goals.

Management as both Science and Art:

Management is both an art and a science. The above mentioned points clearly reveal that management combines features ot tcth
science as well as art. It is considered as a science because it has an
organized body of knowledge which contains certain uni ersa
truth. It is called an art because managing certain skills
requires which are personal possessions of
managers. Science provits the
knowledge & art deals with the application of knowledge and skills.
A manager to be successful in his
profession must acquire the knowledge of science & the art of applying it. Therefore manae ment
is a judicious blend of science as well as
an art because it proves the principles and the
way these principles are applied is a matter of
art. Science teaches to "know and art teaches to
'do'. E.g. a person cannot become a good
singer unless he has knowledge about
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 Sourabn Guna
Assistant Professor
us
(RGOI-C& MDEPT.)
ragas &
he also applies his
naples but he must personal skill in the art of singing. Same way it is not
also apply them in sufficient for manager to first know the
Ut they are complementary to each othersolving various managerial
(like tea and
problems
that is why, science and art are
not mutually exclusive
favor of "Managers are Made". It has biscuit,
been rejected in bread and butter etc.).The old
been aptly remarked that
saying that "Manager are Born" ha
Saence. To condude, we management is the oldest of art and
can say that
science is the root and art is the fruit. youngest of

CONCEPTS OF MANAGEMENT
Meaning Concept:
Concept is the idea
or image or
understanding about things, activity or a person that
several different emerges in the mind of a person. There are
concepts about management Economists have treated
treated it as a cdass or group of management as a factor of production, sociologis:s have
persons; practitioners have treated it as a
process comprising different activates.
Three basic concepts of
Management:
Manogement as a Discipline:
Disapline refers to a field of study having well-defined
indude in it the various relevant concepts and principles. When we refer to
concepts and principles, the knowledge of which
aids in managing
management as a discipline, we
Manogement as a Group of People:
We refer to
management as a group of people in which we include all
organizations those personnel who
perform managerial functions in
We refer to two distinct dasses or
groups of personnel in the
are responsible for organization. In the first category, we include all those
managerial functions and in the second category, we include
persons wno
Manogement as a process: non-managerial personnel
In studying management discipline, we generally refer to
method of handling activates. However, the management as a process. A process can simply be defined s
management process can be treated as a complex one which systernatic
idenufiable flow of information can be referred to
through interrelated stages of analysis directed towards the achievement of an an as

objective. It is a concept of dynamic rather than static objective or set of

existence in which events and
continuous, and flexible, and as such, must be considered as a
whole. Thus, management as a
relationships must be seen as dyna mic,
sub activities. process includes various acrivities and

ResowceF Managerial
Fuctions Objectives
Men & Women Planning
Mouey ORanising
Machines Goods
Materials
Methods
Siafing
Seavice
Markets Direcin
Controlling
LEVELS OF MANAGEMENT
Level of management refers to the categories or layers of
determines the amount of authority and status of managerial positions in an organization.
the person occupying the The level of management
divided into various categories position at that level. These
manageriai posit ons
according their amount of authority and status, they are known as
to
the levei of
management
Manageriol Hierarchy consists of:
.Top Level Management or senior
management
Middle Level Management
Lower Level Management such as supervisors or team-leaders.
Top-level manogement:
Require an extensive knowledge of management roles and skills.
They have to be very aware of external factors such as markets.
Their decisions are generally of a
long-term nature.
Their decisions are made using
analytic, directive, conceptual and/or
They are responsible for strategic decisions. behavioral/participative processes.
They have
to chalk out the
plan and see that plan may be effective in the
They are executive in nature. future.
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 Sourann tuha
Assistant Professor
(RGOI C & M DEPT.)
Cudes board of Directors, CEO's they comprise small
decide objectives & communicate groups but are responsible for overall
to middle level management they formulate
management.
Top
Manageaent
Middle
Management
Lower
Level
Manugement
Hierarchy of Mauageinent Levels
Middle Level of
Management:
The branch managers and
departmental managers constitute middle level. They are
functioning of their
department. They devote more responsible to the top
only one layer of middle level
of
time to
organizational and directional functions. In small management for the
role can be emphasized as -
management but in big enterprises, there may be senior and organization, there is
junior middle level managernent. Their
They execute the plans of the organization in accordance
with the policies and directives of the top
They make plans for the sub-units of the management.
organization.
They participate in employment & training of lower level
They interpret and explain policies from top level management.
They management to lower level.
are responsible for coordinating the activities within the division or
It also sends
important reports and other important data to top level department.
They evaluate management.
performance of junior managers.
They are also responsible for inspiring lower level managers towards
better performance.
Lower Level of
Management:
Lower level is also known as
supervisory operative level of management. It consists of
superintendent etc. According to R.C. Davis, "Supervisory management supervisors, foreman, section officers,
personal oversight and direction of operative employees". In other refers to those executives whose work has to be largely with
words, they are concerned with direction and contro
function of management. Their activities include- ling
Assigning of jobs and tasks to various workers.
They guide and instruct workers for day to day activities.
They are responsible for the quality as well as quantity of production.
They are also entrusted with the responsibility of maintaining good relation in the
organization.
They communicate workers problems, suggestions, and recommendatory
appeals etc to the higher level and higher level
goals and objectives to the workers. They help to solve the grievances of the workers.
They supervise & guide the sub-ordinates.
They are responsible for providing training to the workers.
They arrange necessary materials, machines, tools etc for getting the things done.
They prepare periodical reports about the performance of the workers.
They ensure discipline in the enterprise.
They motivate workers.
They are the image builders of the enterprise because they are in direct contact with the workers.

OBJECTIVES OF MANAGEMENT
The main objectives of management are:
Getting Moximum Results with Minimum Efforts:
The main objective of management is to secure maximum outputs with minimum efforts & resources. Management is
basiually
concerned with thinking & utilizing human, material & financlal resources in such a manner that would result in best conibination
This combination results in reduction of various
costs
Increasing the Efficiency of factors of Production:

5 P age
 Sourabh iuha
Assistant Professor
(RGOI C&M DEPT)
Jgh proper utilization of varlous factors of
reducing spollage, wastages and productlon, thelr efflclency can be Increased to a great extent which a n
breakage of all kinds, this in turn leads to b obtiined
saving of time, effort and money wtich is evsetial
ne growth &
prosperity of theenterprise. for
Maximum
Prosperlty for Employer Employees:
&
Management ensures smooth and coordinated functioning of the
anterprlse. This In turn
the employee in
the shape of good working conditlon, sultable wage system, Incentive planshelps
on
In providing marimun henelit
the one hand and
t
the employer on the other hand. higher proft,
Human betterment
Management
&Social
serves as a tool for the
Justlce:
upliftment as well as betterment of the soclety. Through Increased
management ensures better standards of living for the soclety. It productivity employrment,
provldes Justice through Its uniform policles.
It helps in Achieving Group Goals:
It arranges the factors of
production, assembles and organizes the resources,
achieve goals. It directs group efforts towards Integrates the resources in effective mainer to
achievement of pre-determined goals.
there would be no
wastage of time, money and effort. Management converts By defining objective of organization learly
into useful enterprise. These
resources are coordinated, directed and
disorganlzed resources of men, machines,
money etc.
attainment of goals. controlled In such a manner that
enterprise work towrd
Optimum Utilzation of Resources:
Management utilizes all the physical & human resources
productively. This leads to
by selecting its best possible alternate use inefficacy from
maximum utilization of scarce resources in management.
Managemernt proide
of experts,
professional and these services leads to use of thelr industry out of virious
uss. I n a e . y
employees and machines are producing lts maximum there is no skills, knowledge, and proper utilization and avwid, wasi
under employment of any resources.
It
Reduces Costs:
gets maximum results through minimum input by proper
physical, human and financial resources in planning
and by using minimum input & gelung meaimurn
Management uses
reduction. such a manner which results in best combination, Tus help,w:u
n
0
No
Establishes Sound Organization:
overlapping of efforts (smooth and coordinated
management which is in tune with
functions). To establish sound organizational structure i, one of the ulyedtine u
objective of organization and for fulfillment of this, it establishes effective authority &
responsibility relationship i.e. who is accountable to whom, who can
subordinates. Management fills up various give instructions to whom, who are superiors &wno ar:
positions with right persons, having right skills,
be cleared to everyone. training and qualification. Al job. shovisd
Establishes Equilibrlum:
It enables the organization to survive in
changing environment. It keeps in touch with the
external environment, the initial changing environment. With the cange
co-ordination of organization must be
market/ changing needs of societies. It is responsible changed. So it adapts organization to changing demand iof
Essentials for Prosperity of Soclety: for growth and survival of organization.
Efficient management leads to better economical
management makes a difficult task easier by avoiding
production which helps in turn to increase the weifare of pecpie Gnu
profit which is beneficial to business and society will getwastage
of scarce resource. It
improves standard of living it increaes the
maximum output at minimum cost
which generate income in hands. by creating employment oppori
Organization comes with new products and researches beneficial for society.
un.tie
PROCESS OF MANAGEMENT
According to Koontz and '0' Donnell, "The most useful method of
functions of planning, organizing, classifying managerial activities is to group them
staffing, directing, and controlling. They
"

think that
arcu nd th
coordination is not a separate function but i
the essence of
management. Thus, for the sake of analysis of the management
into the process, we can classify the
following categories: management funcuon
1. Planning:
It is the basic function of management. It deals with chalking out a future
course of action &
appropriate of actions for achievement of
course deciding in advance the mos
what to do, when to do & how to do. It
pre-determined goals. According to KOONTZ,
"Planning is deciding in advance
bridges the gap from where we are & where we want to be". A -
actions. It is an exercise in problem plan is a futuse courz: c
solving decision making. Planning is determination
&
goals. Thus, planning is a systematic thinking about ways & means for of courses of action to achieve desired
accomplishment
necessary to ensure proper utilization of human & non-human resources. It is all
of pre-determined
goals. Planning it
helps in avoiding confusion, uncertainties, risks, wastages etc. pervasive, it is an intellectual activity and it a l o

61 Page
 souravn tna
Assistant Professor
cing Planning i volves the (RGOI C&M DEPT.)
following steps
Determinat.on of objectives;
Forecastins
Formulation of policies and
4Preparation of schedules programn es;
Planning isa process of seeking answer to some of
1 the following particular questions:
What is to be done?
Why it is to be done?
How the work will be done?
Who will do the work?
S When the work will be done?
Where the work will be done?
Planning pevades at all the levels of organization. But the
scope of
organization, the broader the scope of planning. Pl anning planning
level of is not the same at each level of
may be long term and short term. organization. Hig er the

Manning

Contoling
Organizing

StaMng
Directing
2. Organizing:
It is the process of
bringing together physical, financial and human resources and
for achieement of
organizational goals. According to Henry Fayol, "To organize a developing productive relationship amongst them
business is to provide it with everything useful or
its functioning i.e. raw material,
tools, capital and personnel's". To
non-human resources to the organizational structure. organize a business involves determining & providing human and
1. ldentification of activities.
Organizing as a process involves:

2. Classification of grouping of activities.

3. Assignment of duties.
4. Delegation of authority and creation of
5.
responsibility.
Coordinating authority and responsibility relationships.
3. Staffing:
it is the function of
manning the organization structure and keeping it manned. Staffing has assumed
recent years due to advancement of greater importance in
the
technology, increase in size of business, complexity of human behavior etc. The
ofstaffing is to put
right man on right job ie. square pegs in square holes and round main
purpos
pegs in round holes. According to Koot
&O'Donel, "Managerial function of staffing involves manning the
organization structure through
appraisal & development of personnel to fill the roles designed thee structure". Staffing involves: and proper effective selection
1. Manpower Planning (estimating man power in terms of searching, choose the person and
2. Recruitment, selection & placement. giving the right place).
3. Training& development.
4 Remuneration.
5. Performance appraisal.
6. 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
organizing and staffing are the mere preparations for doing the work. Direction is that inert-personnel aspect planing.
of management vihich
deals directly with influencing. guiding, supervising,
motivating sub-ordinate for the achievement of organizational
has following elements: goals. Direction
1. Supervision implies overseeing the work
of subordinates by their supeniors. It is the act of
work &workers. watching& direcin;
2. Motivation means inspiring, stimulating
or encouraging
the sub-ordinates with zeal to werk. Positive, negitivs,
monetary, non-monetary incentives may be used for this purpose
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 sse1o ON S

Sourabh Guha
Assistant Professor
3.
Leadership may be defined as a
(RGOI-C&M DEPT.)
desired direction. process by which manager guldes and influences
4 the work of
Communication -

is the subordinates in
5.
bridge of understanding.process
Controlling:
of passing information, experience, opinion etc from
one
It another. It is a person to
implies measurement of
organizational goals. The accomplishment against the s andards and correction of
system of control helps to purpose of controlling is to ensure that devlation if any to ensure
predict deviations before everything occurs in conformities achievement of
According to Theo Hoimann, they actually occur. with the standards. An
efficient
objectives and goals and acting"Controlling
if
is the
process of checking whether or
not
According to Koontz &O'Donnel necessary, correct any deviation".
to proper progress is being made
toward tih:
make sure that the "Controlling is the measurement & correction of
enterprise objectives and plans desired to
following steps: obtain them as performance activities of subordinates in order to
1. being accomplished". Therefore
Establishment of standard controlling has
2. Measurement
of actual
performance.
3. performance.
Comparison of actual performance with the standards and
4 Corrective action. finding out deviation if any.
QUALITIES OF A SUCCESSFUL
It is easy to find MANAGER
a bad manager, but
ten qualities of a much harder to find
successful
manager:
a successful one. So what makes a
1. Demonstrates integrity manager successful? Here are my top
A
manager should walk the talk. The old
2. Deals saying, "Lead by example" is the first quality that makes a
A
honestly and diplomatically
manager, who owns their mistakes, deals manager a stand out.
3. Demonstrates flexibility openly, and honestly with others, earns the
A
manager who is responsive to the respect those they are tuying to lead. of
achieve the goals of the needs of the business AND the needs of
business. employees, is able to keep his ieam Cn
4. Shows
commitment and target and yet
A
manager who delivers their reliability
5. Listens effectively promises shows their team that they are
reliable and promotes trust.
A
manager who 'seeks first to
on the
pulse of the business.
understand, then to be understood' (Dr Steven
Covey) is a will manager who
6. A good negotiator always have their
firger
A
manager who comes tothe table prepared to
respect of his give a little that the outcome is
employees but be
guaranteed of the positive
a
for everyone,
one
7. A
thorough planner opportunity for further negotiations in the future.
will not only earn the
If you fail to
plan,
you plan to fail.' This saying is
looking to them for the
game plan.
especially true for managing. A manager is a coach
8. 1s fair
to their tean and the
team is
A
manager who doesn't take sides, show
favoritism or victimize those
more personal
power to influence their team for they are
supervising, will earn their trust and
9. Knows how to
have fun and has a
good. in turn, will have
A manager who is good sense of humor
able to promote a safe and
retention of staff. happy work environment where
10. Seeks to understand
appropriate fun is embraced, will ensure the
their workers
A
manager who is able to accurately assess the skills, abilities and
managers to maximize their effectiveness and personalities of their work team, will be able to
help them reach their potential, whilst develop individual
focusing their efforts on the goal.
10 MINTZBERG MANAGERIAL
To meet the
many demands of
ROLES/MANAGERIAL ROLE IN AN ORGANIZATION
Henry Mintzberg performing their functions,
managers assume
has identified
roles common to the work of all
ten multiple roles. A role is an
interpersonal, informational, and decisional. managers. The ten roles are organized set of behaviors.
divided into three
The informationol roles link all groups:
The interpersonal roles
managerial work together.
ensure that information is
provided.
8| Page
sainjsaODE3AU,
u a y

J oON
a b e j a k

Shqeye
d

Sourabn t.una
Assistant Profess

The
(R01-C&M DEP'T.)
decisional roles make significant use of the information.
epertormance of managerial roles and the
o different requirements of these roles can be played at different times by the sanme m.anajer nd
degrees depending on the level and function of management. The ten roles are
integrated whole. described individually, but they
for a

Interpersonal Informational Decisional

Roles Roles Roles

Figurehead Monitor Entrepreneur

Disturbance
Leader handler
Disseminator
Resource
allocator
Liaison
Spokesperson
Negotiator
The three
interpersonal roles are primorily concerned with interpersonal
Figurehead role relationships:
One of the important roles of a leader is simply to be a
roles, because figurehead for the rest of the group. This is one of the
much of it is about being someone that
so interpersornal
leader will project confidence so that people can turn to when they need help, support,
everyone involved feels a sense of security and etc. A good
right. reassurance that the job will be done
Liaison role
The final role within the
interpersonal category, acting as a liaison
a variety of
people both within the
means that the manager must
successtully interface with
organization and on the outside t o keep things running smoothly.
about communication, and it is one of the This point is all
main things that determines the
able to properly communicate with a ultimate success or failure of a
range of people in such a way that the manager. Being
develop. project remains on track is a crucial skill to
Leader role
Another interpersonal role, this one should be
obvious. A needs to lead the people that he or she is in
guiding toward a specific goal. This can include telling themmanager
what
charge of
to do and when to do it,
team members to
highlight specific skills that each possesses, and even offering rewards for a organizing the structure of the
The three informational roles are job well done.
primarily concerned with the information aspects of
Monitor Role managerial work.
Acting as a monitor is the first managerial role within the informational
monitor involves tracking changes in the field that category. Just as the word would indicate, being a
your organization works in, as well as changes on
be signs of trouble down the road. your team that might
Things are never static in business, so the successful
monitor the situation around them and make manager is one who will constantly
quick changes as necessary.
Disseminator Role
It does no good as a
manager to collect information from a variety of internal and
keep it for yourself. The point of gathering that information is so that external sources if you are only
going to
informational role is dissemination getting information out your team can benefit from it directly, so the nex:
quickly and
by the team members on a certain part of a project often has to doeffectively to the rest of your team. Wasted tinie
with them not possessing all of the
information, so make sure they have it as soon as possible. relevan:
Spokesperson Role
As the head of a team of any size or role within the
organization, you will be the representative of that team when it
to meetings, announcements, Being a spokesperson is the final informational role on the
etc. comes
because perception is often a big part of list, and it is an important one
reality. Even if your team is doing great work, it might noi be
reilected as such tu
other decision makers in the organization if
you aren't a good spokesperson.
There are four decislonal roles.
Entrepreneur Role erici
In some ways, being
manager within a larger organization is like
a

managers above you to answer to, you still need to think like an
running your own small business. While you w.l. have
of new ideas that could move your team entrepreneur in terms of
quickly soling probles, tinking
forward, and more. This is the first role within the decisional
9 Page on category the list.
 Sourabh Guha
Assistant Professor
(RGOI-C&M DEPT.)
Disturbance Handler Role
It is almost inevitable that there will be disturbances along the way during any kind of project or task that invuives, m orn
than one person. The second item in the decisional section of the list is being a disturbance handler, because greting ba
on track after a problem arises is important to short-term and long-term productivity. Whether it i a conflict among team
members or a bigger problem outside of the group, your abllity to handle disturbances says a lot about your skills asd
manager.
Resource Allocator Role
Every project is tackled using resources that are limited in some way or another. As a resource allocator, it is your job to
best use what you have available in order to get the job done and meet your defined goals and objectives. Resources can
include budget that has been made available for a project, raw materials, employees, and more. This is the third item within
the decisional category, yet it is one of the most important things a manager must do.
Negotiator Role
Business is all about negotiation, and that is especially true for managers. The final role on the list, being a negotiator
doesn't just mean going outside of the organization to negotiate the terms of a new deal. In fact, most of the important
negotiation will take place right within your own team itself. Getting everyone to buy in to the overall goal eind visiun tor a
project likely will mean negotiating with individual team members to get them to adopt a role that suits thei: skls and
personal development goals. A good manager will be able to negotiate their way through these chalienges and keep the
project on track for success.

RESPONSIBILITIES OF MANAGERS
Responsibilities of a managerial position
1. Supervise and manage the overall performance of staff in his department.
2. Achieve business and organization goals, visions and objectives.
3 Analyzing, reporting, giving recommendations and developing strategies on how to improve quality and quantity.
4. Involved in employee selection, career development, succession planning and periodic training.
S. Working out compensations and rewards.
6. Responsible for the growth and increase in the organizations' finances and earnings.
7. Identifying problems, creating choices and providing alternatives courses of actions.

IMPORTANCE OF MANAGEMENT
1. It helps in Achieving Group Goals
It arranges the factors of production, assembles and organizes the resources, integrates the resources in effective manner to achieve
goals. It directs group efforts towards achievement of pre-determined goals. By defining objective of organization clearly there
would be no wastage of time, money and effort. Management converts disorganized resources of men, machines, money etc. into
useful enterprise. These resources are coordinated, directed and controlled in such a manner that enterprise work towards
attainment of goals.
2 . Optimum Utilization of Resources
retanagement utilizes all the physical & human resources productively.This leads to efficacy in management. Management provides
maximum utilization of scarce resources by selecting its best possible alternateuse in industry from out of various uses. Ii mares use
of experts, professional and these services leads to use of their sills, knowledge, and proper utilization and avoids wasag
employees and machines are producing its maximum there is no under employment of any resources
3. Reduces Costs
It gets maximum results through minimum input by proper planning and by using minimum input & getting maximum output.
in such which results in best combination. This helps in cost
Management uses physical, human and financial resources a manner

reduction.
4. Establishes Sound Organization
No overlapping of efforts (smooth and coordinated functions). To establish sound organizational structureis one of the objective of .
and for fulfillment of this, it establishes effective authority &
management which is in tune with objective of organization
accountable to whom, who can give instructions to whom, who are superiors & who are
responsibility relationship i.e. who is
subordinates. Management fills up various positions with right persons, having right skills, training and qualificaticn. All jobs should
be cleared to everyone.
5. Establishes Equilibrium
It enables the organization to survive in changing environment. It keeps changing environment. With the change is
in touch with the

of organization adapts organization to changing den and of

must be changed. so it
external environment, the initial co-ordination
market/ changing needs of societies. It is responsible for growth and survival of organization.
6. Essentials for Prosperity of Society
10| P a ge
 douradn tuna
Asslstant Professor
(RGO1 C &M DEPT.)
nt management leads to better economical production which helps In turn to Increase the welfare
people. Good
ement makes a difficuit tast easler by avolding wastage of scarce resource. It Improves standard of living. It increases the
f t whih is benefical to business and society will getmaximum output at minimum cost by creating employment opportunities
wch generate incvme in hands. Organization comes with new products and researches beneflclal for soclety.

PRINCIPLES OF MANAGEMENT
anagement princigles are statements of fundamental truth. These principles serve as guidelines for declsions and actions of
managers They are derived through observation and analysis of events which managers have to face in practice. Fayol made his
mark as an industnalist with the French coal and iron combine of commentary four chambault where he spent his entire working
eAcrording to Foyo the activities of an industrial organlzation could be divded Into six categorles
INANCLaL
shownbelow:-
TECHNICAL (Production & Manufacturing) comERCIAL SLCLRII
cOMIMERCIAL -(Buying. Seling &Exchange)
FINANCIA (Acquiring &using capital)
SECURITY-(Protection of Property & Person) ANAGR'S
CINUIES
ACCOUNTING-(Stock taking, Balance sheet, cost & statistics)
MANAGERIAL -(Planning. Organizing. Staffing, Directing &
zCuNICAaL ACCOLJS
controling)
There are 14 Principles of Management described by Henri Foyo:
1. Division of Work
The specialization of the workforce according to the skills a person, creating specific personal and professional
development within the labour force and therefore increasing productivity, leads to speclalization which Increases the etficiency of
abour. By separating a small part of wor the workers speed and accuracy in its performance increases. This principle is applicable
to both technical as well as managerial work.
2. Authority and Responsibility
The issue of commands followed by responsibility for their consequences. Authority means the right of a superior to give order to his
subordinates; responsibility means obligation for performance. This principle suggests that there must be parity between authority
and responsibility.They are co-existent and go together, and are two sides of the same coln.
3. Discipline
Disapline refers to obedience, proper conduct in relation to others, respect of authority, etc. It is essential for the smooth
functioning of all organizations.
4. Unity of Command
This prinaple states that every subordinate should receive orders and be accountable to one and only one superior. If an employee
receives orders from more than one superior, it is likely to create confusion and conflict. Unity of Command also makes it easier to
fix responsibility for mistakes.
5. Unity of Direction
All those working in the same line of activity must understand and pursue the same objectives. All related activities should be put
under one group, there should be one plan of action for them, and they should be under the control of one manager. It seeks to
ensure unity of action, focusing of efforts and coordination of strength.
6 Subordination of Individual Interest
The management must put aside personal considerations and put company objectives first. Therefore the interests of goals of the
organization must prevail over the personal interests of individuals.
7. Remunerotion
Workers must be paid sufficiently as this is a chief motivation of employees and therefore greatly influences productivity. The
quantum and methods of remuneration payable should be fair, reasonable and rewarding of effort.
&The Degree of Centralization
The amount of power wielded with the central management depends on company size. Centralization implies the concentration of
decision making authority at the top management. Sharing of authority with lower levels is called decentralization. The organization
should strive to achieve a proper balance.
9. Scolar Chain

11| P age
 Sourabn t»una
Assistant Professor
ar Chain
refers to the chain of (RGOI C & M DEPT.)
1Ould be a clear line
of
superiors ranging from top management the lowest rank. The
to
nvolves a concept called authority from top to bottom linking all managers at all principle suggests that there
a"gang levels. It is considered
defying the hierarchy of control. plank" using which a subordinate may contact a a chain of
However the immediate superior or his superior in case of command. It
superiors must be informed about the an
emergency,
A matter.

--.
---
.
D
GANG PLANK G
10. Order
Social order ensures the
fluid operation of a
in the workplace. company through authoritative
11. Equity
procedure. Material order ensures safety and efficiency
Employees must be treated kindly, and
when dealing with employees. justice must be enacted to ensure a just workplace. Managers should be fair and
12. Stability of Tenure impartial
The of Personnel
period of service should not be too
render useful service short and employees
if he is removed before he becomes should not be moved from
13. Initiative accustomed to the work positions frequently. An
employee cannot
Using the initiative
to assigned him.
of employees
of can add
strength and new ideas to an
strength
for the
organization because it provides new and organization. Initiative on the part of employees is a
functioning of the organization. better ideas.
Employees are likely to take greater interest source
14. Esprit de in the
Corps
This refers to the need of
develop an atmosphere of managers
to ensure and
mutual trust and
develop morale in the workplace;
These can be used to initiate individually and communally. Team spirit
understanding.
and aid the helps
of the processes of change, organization,
management function. decision making, skill
management and the overall view
UNITY OF cOMMAND &
UNITY OF DIRECTION
Basis Unity of command
Unity of direction
Meaning It implies that a sub-ordinate should receive orders & It means one
instructions from only one boss. head, one plan for a
having similar objectives. group of activities
Nature It is related to the
functioning of personnel's. It is related
the to
organization as a whole. functioning of departments, or

Necessity It is
necessary for fixing
subordinate. responsibility of each It is necessary for sound
organization.
Advantage It avoids conflicts, confusion & chaos. It avoids duplication of efforts and wastage of
Result resources.
It leads to better superior sub-ordinate relationship. It leads to smooth running of the
enterprise

12| P a ge
 NIHON
IWHSV OE

svXNAIdd 6
Sourabn (una

Assistant Professor
(RGOI-C&M DEPT.)
Juapnis

Functional Areas
of a business
organizations will differ depending
The departments various
of

on the type of business.

HUMAN RESOURCE
the business. The
Human resource is the most important asset in
its people. HR Department is
heart of an organization lies on
the right people with the required skills
responsible for recruiting for determining the
qualificafions and experience, is responsible is also involved in
salaries of different positions in the company and
for their development.
training the company's employees

MARKETING/PROMOTION
Promotional activities and advertising are the best ways to
them to be able to know
communicate with your farget customers for
the company's products and services.
Effective marketing and
drive long-ferm success, profitab:ity and
promotional activities will is responsibie for
growth in market shares.toThis department and
promoting the business generate sales help the company
Its function involves creating various marketing strotegy and
grow.
are also responsible for
planning promoftional campaigns. hey
monitoring competitor's activities.

CUSTOMER SERVICE SUPPORT

The Customer Service department is responsible for interacting with
customers regarding inquiries, complaints and orders. It aiso inc:ludes
for
having a help desk/reception and confact centers. It is important
abusiness to maintain and create relationship with their customers.
Customer service should be provided before, during and after the
purchose. This department focuses on glving good service support,
especially to potential, new and existing customers. Part of o
business' customer relationship manogement is having an efficient
customer service support. A good relafionship with customers will
create customer-loyalfy.

13| P a ge
 ON'S

a p n a s

ourann t.una
Assistant Profcss
(RGOI C&M DEP1)

SALES
In every business, sales
department
organizotion's success. The plays the
sales department biggest roie in any
is responsible for
generating revenue. The sales department is tasked to ensure tnat
the sale of products and services results to profit. The scles
department coordinates with the marketing
brand-awareness, product-launching and more. department in terms of
product left the production From the time the
on how to sell the
product
department. Sales need to develop ways
to their target users/customers.
ACCOUNTING AND FINANCE
Responsible for accounting.
company's finances. They areauditing, planning, and organizing he
also responsible in
company's producing the
financial statements. Cash flow is the lifeblood
business. It is of ar
important to manage the business' cash ourflows
inflows. The company anc
can't operate without
money.
.We DISTRIBUTION
The distribution
and department is responsible for the receiving orders
delivering orders to the customer at the right
for the distribution place,
time. If goods are not suitable at the
right
involve in the distribution will be channe', expenses
wasted.

RESEARCH AND DEVELOPMENT

Innovation is the key
will open new to every business'
future. Through innovation, it
competitive advantage for the company.
and Development acts as the Researchh
will be responsible catalyst in the innovation cocass Tev
for innovations in product, creating its new
and style. As well as for
products by being searching new ways of prod:cing 'herdesi9
and economical frends. updatedwith regards to the latest
tecarolcgical

sure ADMINISTRATIVE/MANAGEMENT
The administrative
business. The
and management is the
backbone of the
administrative
function is to handle the
and
management department's
also financial review. Thisbusiness, planning. decision-making and
department links with other
and operations.department
ensure the smooth flow of information to

PRODUCTION
The production department is concerned in
products, where are manufacturing
the
output through a inputs (raw materials)
series of producfion converted into inisned
process. This
function is to ensure that
the raw materials are madedepertment's
product effectively and efficiently and in good quality. This finisnes
into
deportment should also mainfain fhe opfimum inventory leve

14| P age
on
Assistant Profrss
(RGO1C&MDEP1)

OPERATIONS
is reoponsiblo for overseoing, dosigr ing.
The operations doportmont and redosigning busine9%
controlling the procoso of productlon In o
oporationd in tho production of goodo and/or norvices,
dopartmont dosigrs proco310s
monufacturing compony, opurations doparimont is also
to produco tho product officlontly. Thi funciional fiou of
of matorlals ensuringo
rouponolblo for ocquloltlon
tho ontiro businos9

IT SUPPORT
a r e very essontial in busine3
Computers and Informatlon eystem is the backbone for a smooth
nowadays. The IT department This department is retponsiblo fo
oporation involving computers. providing direct cpergtir
croating softwaro for other dopartment, management to all furctiori:
a s s i s t a n c o in softwore use and data
areas in the organizatlon.

We
PURCHASING nent of
for the procurer
The purchasing department is responsible and supplies. This
machinerles, equipment
raw materiale, ut the
dopartmont ensures that the materlals are in the right quantity,
avallable in the right fime, fromofthe right suppior I1
right price, made
task to inform the top management the changes of the
s also their saias.
the company's
price o r material development that could affect

LEGALDEPARTMENT issues in
to o v e r s e e and identify legal
The legal department is tasked with
also offer training and assistance
all departments. They may and its empioyees
e n s u r e that the company
employee m a n u a l s to This depoartment als invo:v:s
o n workplace law.
a r e kept up to date
in a professionalstyle a n d represent
handling customer complaints handle docurrenis o
the c o m p a n y ifThey also
sued. filing of legal
9overnment agencies.

Sure

CUSTOMER
SALES ACCOUNTING
HUMANN MARKETING AND FINANCE
RESOURCE PROMOTION SERVICE
SUPPORT

RESEARcHAND ADMINISTRATIVE PRODUCTION

OPERATIONS INFORMATION
TECHNOLOGYC
DEVELOPMENT AND SUPPORT
MANAGEMENT

15|P a 8e
 #S

Sourann u n a

Assistant Professor

CH M DEPT.)
(RGOI

of m a n a y . e m e n t
MANAGEMENT THOUGHT Each of the schools
theoretical frameworks
for the study of management.
Since the
The schools of management thought are
belngs and the organizations for whlch they work.
about human as
thought are based on somewhat different assumptions
the study of management has progressed
througl several st.nges
late in the 19th century, of pood managernent
formal study of management began focused on what they
believed to be Important aspects
about
in different eras voluminous information
scholars and practitioners working to organize and classify the identificatior of
thinkers have sought ways
have resulted in the
practice. Over time, management These attempts at
classification
Different writers have identi ied
disseminated. as tew

management that has

been collected and
to the exact number
of management schools. the qantitati e
(2) the behavioral school, (3)
as
Disagreement exists
management schools. (1) the classical school,
discussed below include of inanagement is largeiy
as many as
twelve. Those school. The studyformal
three and
as
(5) and the contingency
the systems school, of thought reflect a
lack of
science school, (4) schools
the relatively large number of
or management management
and to s o m e degree brief summary of five
and practice. Table below provides
a
twentieth-century phenomenon,
scholars about basic questions of theory emphasis. The folloving
management and their relative a r e a s of
their approximate dates of origin,
c o n s e n s u s among
perspectives a r e
major schools of management thought, detail. In addition, three contemporary
management
schools In more
sections discuss each of the management
discussed.

MANAGEMENT Beginning Emphasis

CWe sCHOOLS Dates
more uflicsently.
CLASSICAL workers and organizations
Managing
sCHOOL

scientific 1880s
Management

Administrative 1940s
Management

Bureaucratic
1920s
Management
ation.
behavior in the organiz
BEHAVIORAL Understanding h u m a n

SCHOOL

Human 1930s
Relations

Behavioral
1950s
3ure
Science
decision-making
of managerial
Increasing quality statistical
QUANTITATIVE of mathematical and
through the application
sCHOOL
methods.

Management 1940s
Science

Operations 1940s
Management

Management
Information
1950s
1970s
Systems
Understanding the
organization a s a system that
sYSTEMs 1950s into outputs while in c o n s t a n t
transforms inputs
sCHOOL interaction with t s ' enuironment.

as
principles and p r o c e s s e s
coNTINGENCY 1960s Applying management
the unique characteristics of e a c h
dictated by
SCHOOL

16| P a ge
 Sourabh Guha
Assistant Professor

THE CLASSsICAL SCHOOL

(RO1-C&M DEPT.)
classical school is the oldest formal
school of management thought. Its roots
thought generally concerns ways to pre-date the twentieth century. The class ical
under the classical school are scientific
manage work and organizations more schoo
efficiently. Three areas of study that can be grouped
management, administrative management, and bureaucratic
management.
SCIENTIFIC MANAGEMENT.
In the late 19th
century, management decisions were often arbitrary and workers often worked at an
was little in the
way of systematic management and workers and management were often in conflict.intentionally slow pace. There
introduced in an attempt to create a mental revolution in Scientific management was
the workplace. It can be defined as the
in order to improve
efficiency. Frederick W. Taylor was its main systematic study of work methods
Gilbreth, and Henry Gantt. Scientific management has several proponent. Other major contributors were Frank Gilbreth, Lillian
major principles. First, it calls for the
method for accomplishing each task. Second, scientific application
method to work in order to determine the best of the scientific
workers should be scientifically selected based on their management suggests that
scientific management advocates genuine qualifications and trained to perform their jobs in the optimal manner. Third,
scientific management suggests that
cooperation between workers and management based on mutual
self-interest. Finally,
management should take complete responsibility for
primary responsibility should be implementing planning the work and that, workers'
management's plans. Other important characteristics of scientific
include the scientific development of difficult but fair rnanagement
performance standards and the implementation of a
incentive plan based on work standards. Scientific
management had a tremendous influence on management pay-for-perfonance
twentieth century. Although it does not
represent a complete theory of management, it has contributed practice in the early
management and organizations in many areas, including human resource to the study of
tenets of scientific management are still valid management and industrial engineering. Many of the
today.
ADMINISTRATIVE MANAGEMENT
Administrative management focuses on the
management process and
management, which deals largely with jobs and work at the individual level ofprinciples
of
management. In contrast to scientific
analysis,
general theory of management. Henri Fayol is the major contributor to this school of administrative management provides a more
management practitioner who brought his experience to bear on the subject of management thought. Fayol was
that management was a universal management functions and principles. He argued
process consisting of functions, which he termed planning,
and controlling. Fayol believed that all organizing, commanding, coordinating,
managers performed these functions and that the functions
separate discipline of study apart from accounting, finance, and production. Fayol also distinguished management as a
management, which included maxims related to the division of work, authority and presented fourteen principles of
centralization, subordinate initiative, and team spirit. Although administrative responsibility, unity of command and direction,
inflexible and the validity of the functional management has been criticized as being rigid and
approach to management has been questioned, this school of thought still influences
management theory and practice. The functional approach to management is still the dominant
way of organizing management
knowledge, and many of Fayol's principles of management, when applied with the flexibility that he advoceted, are still considered
relevant.

BUREAUCRATIC MANAGEMENT.
Bureaucratic management focuses on the ideal form of
organization. Max Weber was the major contributor to bureatucratic
management. Based on observation, Weber concluded that many early organizations were
based on personal relationships and loyalty. He proposed that a form of inefficiently managed, with decisions
f labor, hierarchy, formalized rules,
organization, called a bureaucracy, characterized by dvision
impersonality, and the selection and promotion of employees based on ability, would leacd to
more efficient management. Weber also contended that
managers' authority in an organization should be based not on traditionor
charisma but on the position held by managers in the
organizational hierarchy. Bureaucracy has come to stand for inflexibility and
waste, but Weber did not advocate or favor the excesses found in many bureaucratic
basis for modern organization theory and are still descriptive of some
organizations today. Weber's ideas formed the
organizations.
. THE BEHAVvIORAL SCHoOL
The behavioral school of management thought developed, in
part, because of perceived weaknesses in the assumptions of the
classical school. The classical school emphasized efficiency, process, and principles. Some felt that this emphasis
disregarded
important aspects of organizational life, particularly as it related to human behavior. Thus, the behavioral school focused on trying tu
understand the factors that affect human behavior at work.

HUMAN RELATIONS.
The Hawthorne Experiments began in 1924 and continued through the early 1930s. A variet of researchers participated in the
studies, including Clair Turner, Fritz J. Roethlisberger, and Elton Mayo, whose respective books on the studies are
known. One of the major conclusions of the Hawthorne studies was that workers" attitudes perhaps the best
are associated with
productinity.
17| P a ge
 Sourabh Guha
Assistan: Professur
(RGOI Cu M DEPT.)

er was that the workplace is a ocial s

yst and informal group influence could exert a powerful effect on individual behaior
rd was that the style of supervision is an important factor in increasing workers' job satisfaction. The studies also found that
anizations should take steps to assist employees in adjusting to organizational life by fostering collaborative systerms between
abor and management. Such conclusions sparked increasing interest in the human element at work;, today, the Hawthorne studies
are generally credited as the impetus for the human relations school. According to the human relations school, the manager should
possess skills for dlagnosing the causes of human behavior at work, interpersonal communication, and motivating and eacing
workers. The focus became satistying worker needs. If worker needs were satisfied, wisdom held, the workers would in turn be more
productive. Thus, the human relations school focuses on issues of communication, leadership, motivation, and grouy behavicr. Tne
individuals who contributed to the school are too numerous to mention, but some of the best-knovwn contributors include Wary
Parker Follett, Chester Barnard, Abraham Maslow, Kurt Lewin, Renais Liket, and Keith Davis. The human relatons scvool of trougi
stll influences management theory and practice, as contemporary management focuses much attentin on. huma urc
management, organizational behavior, and applied psychology in the workplace.

BEHAVIORAL sCIENCE
Behavioral science and the study of organizational behavioremerged in the 19505 and 19605. The behavioral scienre sr:oct wa, a

natural progression of the human relations movement. It focused on applying conceptual and analytical toos to the protien c
understanding and predicting behavior in the workplace. However, the study of behavioral science and orgenzationl behavior was
also a result of criticism of the human relations approach as simplistic and manipulative in its assumptions about tne relat.onship
between worker attitudes and productivity. The study of behavioral science in business schools was given increased credence by the
1959 Gordon and Howell report on higher education, which emphasized the importance to management practi tioners of
understanding human behavior. The behavioral sience school has contributed to the study of management through its teaus on
Some of the
personality, attitudes, values, motivation, group behavior, leadership, communication, and conflict, among other issues.
major contributors to this school include Douglas McGregor, Chris Argyris, Frederick Herzberg, Renais Likert, and Ralph Stogdil

although there are many others.

THE QUANTITATIVE SCHOOL

be traced
The quantitative school focuses on improving decision making via the application of quantitative techniques. lts roots can1

back to scientific management.

MANAGEMENT SCIENCE AND MIS.
mathematical and statistical approaches to scive managem.erit
Management science (also called operations research) uses
problems. It developed during World War II as strategists tried to apply scientific knowledge and methods to the conplex probiers
an alzebra:c
of war. Industry began to apply management science after
the war. George Dantzig developed linear programming,
resources. Other tools used in industry indude inveriiory conuoi Lie,. EOal
method to determine the optimal allocation of scarce
made management science toos ana conceps
advent of the computer many
programming, queuing models, and simulation. The are inte tWined. Ms
science and management information systems (Mi5)
more practical for industry. Increasingly, management
focuses on providing needed infor.nation to managers in a useful fomat and at the proper time. Decision suppori systems (USS
better management decisions.
and the decision maker into a system that supports
attempt to integrate decision models, data,
PRODUCTION AND OPERATIONS MAWAGEMENT.
transforms resources into finished gocds and
control of the production process that
This school focuses on the operation and
but became an identifiable area of management study afer World War ll It uses
services. It has its roots in scientific management
productivity and quality of both manufacturing and
science. Operations management emphasizes
many of the tools of management modern ideas about improving prod uctivity
exerted a tremendous influence in shaping
service organizations. W. Edwards Deming fadlities location, facilities layout,
within operations management include capacity planning
and quality. Major areas of study menufacturing
and inventory control, quality control, computer integrated
materials requírement planning, scheduling, purchasing
flexible manufacturing systems.
just-in-time inventory systems, and

V. SYSTEMS SCHOOL
transforms inputs mto uiyu. 's:cosi"
the organization as an open system that
The systems school focuses on understanding that a general systems model could Le used to
uriie sciette
von Bertalanffy, who believed
based on the work of a biologist, Ludwig Fremont Kast, and James Rcsenzweig. The systens
included Kenneth Boulding, Richard Johnson,
Early contributors to this school in the 1960s as a way of thinking about managing iechrques the
on management thought
school began strong impact
to have a external environentai
of the company to one another, as well as to
would allow managers to relate different specialties and parts and rs need to achieve
interaction with the environment,
the organization as a whole, its
factors. The systems school focuses on in the 19605, but its influence on management thought h6s
receiveda great deal of attention
equilibrium. General systems theory

18| P age
 Sourabh Giuba
Assistani P'rofessor
Ainished somewhat. It has been (RGOI C & M DEPT)
chool formed the basis for criticized as too abstract and too
the contingency school of complex. However, many of the ideas Inherent in the
management. systems
V. cONTINGENCY SCHOOL
The
contingency school focuses on applying
situatlon. It emphasizes that management princlples and processes as dictated
there is no one best
way to manage and that it
by the unique characteristics of each
external environment, depends on varlous situatlonal factors, such as the
technology, organizational characteristics, characteristics of the
subordinates. Contingency theorists often
implicltly or manager, and characteristics of the
management principles; however, most classical writersexplicithy criticlze the classlcal school for its emphasis on the universality of
management principles. The contingency school recognized the need to conslder aspects of the situation when
organizational design, job design, motivation, andoriginated in the 1960s. It has been applied primarily to management issuesapplying
such as
leadership style. For
to depend upon
organizational size, technology, and environmental example, optimal organizational structure has been theorized
theorized to depend upon a
variety of uncertainty; optimal leadership style, meanwhile has been
characteristics of individual subordinates, factors, Including task structure, positlon power, characteristics of the work
contributors to this school of quality requirements, and problem grcup,
management thought include
structure, to name a few. A few of the
many others. Joan Woodward, Paul Lawrence, Jay Lorsch, and Fred major
Fied'er, among
VI. cONTEMPORARY "SCHOOLS" OF MANAGEMENT
THOUGHT
Management research and practice continues to evolve
and new
This section briefly reviews two approaches to the study of management continue to be
neither of these management contemporary approaches: total quality management (TQM) and the advanced.
approaches offer a complete theory of learning organizalion. Wnile
management field. management, they do offer additional
insights into the
TOTAL QUALITY MANAGEMENT.
Total quality management
(TQM) is a
deliver quality goods and services to philosophy approach to management that focuses on
or
customers. This managing the entire organization to
their economlc renalssance. approach
was a major factor in to management was
TQM has at least four implemented in Japan after World War
il and
preventing quality problems before they occur. A customer major elements. Employee invoivement is essential in
needs and wants and deliver focus means that the
products and services that address organization must attempt to deier mine cus tomer
out other
organizations that perform a function or process morethem. Benchmarking means that the organization is always seeking
their own
performance. The organlzation will also effectively and using them as a standard, or
philosophy of continuous improvement means thatattempt improve the processes used by other benchmark,
to adapt or to juoge

time in all areas of the the organization is committed to incremental changes and companies. Finally., a

organization. TQM has been implemented by many improvernents ever

performance improvements in many organlzations. companies worldwide and
Edwards Deming. Perhaps the best-known propenent of this school appears
of
to have fostered
management was W.
LEARNING ORGANIZATION.
The contemporary
organization faces unprecedented environmental and technological change.
for organizations is to Thus,
continuously change in a way that meets the
demands of this turbulent
one
oi the
biggest chalienges
learning organization can be defined as one in which all competitive environment. The
the organlzation to
continually increase its employees are involved in
identifying and solving problems, wBiich allows
organization Is not efficiency, but problem ability
to grow, learn, and
achieve its purpose. The
organizing principle of the
empowered employees, and open information.solving. Three key aspects of the
Peter Senge is one of the learning organization are a team-based learning
best-known experts on learning structure,
THREE ORGANISATION THEORIES: organizations.
CLASSICAL, NEO-CLASsICAL AND MODERN
1.Classlcal Organisatlon
The classlcal writers viewed Theory:
that organisation as a machine and human beings as
efficlency of the
organisation can be components of that machine.
ordination of activities. Most of the writersincreased by making human beings efficient. Their emphasis was They were of the view
theory has given streams; scientific emphasis
gave on
top level and few at lower levels specialisation
is why this on efficiency at the and cu
of
mainly concerned with the tasks to be management and administrative organisation. That
functions of management. Some performed at operative levels. Henry management. The scientific
Fayol studied for the managenient group was
authors like Gullick, Oliver
necessary for achieving organisation Sheldon, Urwick viewed the problem wherefirst time the prin.ciptes and
effective. Since this theory revolves goals. Grouping or departmentation was also considered essentialidentification of activities is
around structure it is also called for making the
'structural theory of functions
organisation."

19| P a ge
 Sourabh Giuha
Assistant Professur

(RGOI C&M DEPT.)

divisicon of work,
around four key pillars
organisation theory is built
classical writers, the
1ars of Organisation
Theory: According to
and span of control. the
scalar and
processes, structure
functional with a view to improve
obtain specialisation
work must be divided to broken into its simplest
Division of labour implies that that m o r e a particular job is
. Division of Labour: the assumption in workers
theory rests on of the job. The specialisation
workers. The classical his part that
performance of in carrying out
specialised a worker c a n become subdivided into different components so
component parts, the more
activities of a job
are specified and of labour. The
efficient. Various their work this
under divísion
on repeating
is benefitted by
organisation
will make the workers will go
different persons. The
organisation as a whole
be assigned to and the
these may their efficiency
workers to improve
work will help inn a
performance of s a m e to lowest rank
m o v e s from highest
exercise. formal line of authority which to the desired
chain is the communicated
Process: Scalar information is to be and
Scalar and Functional which the of command unity
ii. the route through
delegation of authority,
chain specifies command, of
straight line. This refers to the growth of chain of duties according
to the degree
The scalar process scale or grading of deals
location/person. because it provides a The functional process
scalar process in the organisation.
report. it is called s u b o r d i n a t e relationship units.
obligation to superior- the parts into compatible
It generates and regrouping of
and responsibility. The basic
authority parts or departments in the organisation.
division of organisation into specialised various tasks, activities and people for its
the
with
framework of formal
relationships among
a specific task
and authority is delegated
Structure: It is the
the
iii. Each position is assigned effectiveness of
the classical theory is position. will determine the
structural element in will be accomplished
which these tasks
The efficiency with staff organisations. specified
accomplishment.
emphasised line and control. Classical thinkers
classical writers subordinates a manager can control if the
organisation. The the number of
of control means cannot exercise proper
a superior. A
manager
of Control: The span by less then his capacity
and
iv. Span
levels which can be
effectively supervised if the number is
numbers at different certain figure, on the other hand
beyond a
of subordinates increases
number
utilised.
knowledge cannot be fully

follows:
Classical Theory: drawbacks aregiven as if particular
Appraisal of restraints. Some of its to find out the
reasons a
suffers from some
They did not try
The classical theory
structures.
concentrated only on line and staff
i. Classical thinkers
effective than others. take
s t r u c t u r e is m o r e human nature. They
decision-making processes.
on the complexity of
This theory did
not lay emphasis Classical thinkers
did not realize
il.
Human behaviour
was ignored in this theory. the assigned task. environment and
li. performing influenced by
inert of organisation
instrument Organisation is greatly
as
human beings closed system is unrealistic.
in a with the
e n v i r o n m ent.
that organisation which has interaction
iv. The assumption system
anis open
vice-versa. A modern organisation

Theory: mechanical variables

of organisational functioning.
Neo-Classical Organisation physiological and Mayo
associates
and
2. focussed main attention on conducted by George Elton
organisation Hawthorne Studies
The classical theory of results. The variables. These studies
focussed
did not show positive physiological
of these variables than mere
more
The testing was somewhat
behaviour
of human
discovered that real cause
organisation.
attention on
human beings in the
contained in two points: and
approach is and technical terms, of
New-classical in social, economic
the doctor's diagnosis
should be viewed method analogous to
Organisational
situation
understood in terms of clinical
behaviour can be
of group the
the social process in this theory is
i. behavioural approach followed
human organism. organisation as important. The co-ordination and
informal forms of viz. division of work, departmentation,
views formal and classical theory within the
This theory The pillars o independently or
of new-classical
thinkers.
regarded as modified by people acting
other contribution but these postulates
were
as given
w e r e taken
human behaviour
informal organisation.
context of the
as follows:
theory a r e given interacting parts.
The main propositions of neo-classical composed of numerous

is a social system affect each other.

The organisation
in general
organisation. Both
are affected by and
within the formal at work.
exist terms of social factors
i. Informal organisations be predicted in
and his behaviour can
motivate human beings at work.
Human being is independent factors operate to individual
i.
Many
socio-psychological
to reconcile the goals of the
a need
iv. Motivation is a complex process.
individual often exists. There is
goals
organisational and
. A conflict between
with those of the organisation.

20 P age
 Sourabh Guha
Assistant Professor
(RGOI C & M DEPT.)
Even though systems approach presents a better understanding of organisational and managerial functioning but it does rot provide
solution for alltypes of organisational structures. Systems approach offers models which may not suit every type of orgarnisation. A
structuresuitable for one unit may not be suitable for another. Contingency approach suggests an organisational design which suits
a particular unit. A structure will be suitable only if it is tailor made for an enterprise. The influence of both internal and external
factors should be considered while framing a suitable organisational structure. This approach suggests that needs, requiremerts,
situations ofa particular concern should be considered while designing an organisational structure. The factors which infliuence an
organisation may be described as
Environment
Technolo8Y
Size of operations
People.
These factors greatly influence a decision for the selection of an appropriate organisation for an enterprise.