Principles of Management

UNIT-I

Concept of Management :

Management has been defined in many ways. A simple definition is “the activity of
using resources in an efficient and effective way so that the end product is worth more
than the initial resources”. This simple definition has the advantage that it focuses
upon the crucial role of management to transform inputs into outputs of greater value.

Mary Parker Follett (1941) defined management as:

“Getting things done by other people.”

John F. Mee defines management as the art of securing maximum results with a
minimum of effort so as to secure maximum prosperity and happiness for both
employer and employee and give the public the best possible service.

Management is a distinct process consisting of planning, organising, actuating and

controlling performance to determine and accomplish the objectives by the use
of people and resources” – George R. Terry

“Management is concerned with seeing that the job gets done, it tasks all centre that
on planning and guiding the operations to it are going on the enterprise.” – E.F.L.
Brech

“Management is simply the process of decision making and control over the actions
of human beings for the express purpose of attaining predetermined goals.” – Stanley
Vane.

Meaning and Concept of Management In the modern world, it is of utmost importance

to utilize economically and efficiently the resources of all kinds – human, physical,
financial and technological. No organization can achieve its objectives without the
optimum use of these resources. In order to ensure a rational use of the limited
resources, knowledge of „management‟ is required. The people who manage the
organization are known as „managers‟ and the knowledge, skills, techniques and
practices they use in managing are broadly referred to as the field of „management‟.
Through management, managers bring about the effective co – ordination between
human and non – human resources so as to achieve maximum productivity at a
minimum cost. Thus, management is a force that unifies and co – ordinates various
resources to accomplish organizational goals. Management enables the efficient
utilization of limited resources, eliminates wastages and brings about order and
discipline. In business, knowledge of management is critical to generation of profits.
The productive efficiency of an organization depends to a large extent on the quality
and competence of its managers.

Nature

The nature of management:

Universal Application 

These principles have universal nature due to which these are applicable for all kinds
and sizes of organisations. However, the method of application for these principles
can be modified, and outcome may vary. For instance, specialisation degree will vary
across an organisation, but the principle of labour division remains the same. 

Experiments and Practice 

The development of management principles involves trial and error and extensive
research. It includes experiments and observations before these principles are
developed. Hence, management principles are understood to be evolutionary.

General Guidelines 

These principles have to be applied in an organisation while keeping in mind nature,

size and objectives of that firm. Management principles are not absolute statements in
themselves and cannot be implemented rigidly. It provides broad guidelines to
resolute issues that may arise in the course of operations.
For instance, the salary amount that an employee receives is dependent on a host of
factors, but the fair remuneration principle applies to all organisations.

Flexibility 

Management principles are flexible enough to be applied in different situations. Based

on the requirements of an organisation, the principles may be modified by
administrators. It is this absence of rigidity that makes management principles
effective.

For instance, concentration of power is indicated at the apex level in an organisation

by centralisation principle. However, the degree and extent of it will have to consider
the nature of the organisation as well.

Behavioural Aspect 

The management principles influence employee behaviour and have a strong bearing
on interactions happening within an organisation across different levels of hierarchy.
It helps in improving relationships among the members of an organisation.

For instance, even though principle of discipline mandates a certain degree of

commitment of employees extended towards a company, Esprit de Corps principle
leads to building of team spirit. 

Contingency 

Application of management principles is dependent on contingent for existing

situations in a company. The effect and application of such principles will also have
to consider the function, requirement and nature of an organisation. Application will
have to be tailored accordingly. 

Cause and Effect Relationship 

The establishment of management principles takes into account causal relationships

with respect to stock situations. It means that if those principles are applied in a
particular scenario, a general effect may be assumed. However, one cannot anticipate
the exact result borne out from applying management principles. 
Scope of Management:Management involves handling people organized in a
group. All the individuals a manager has to interact with have various levels of
dynamism, understanding, and sensitivity. Management requires retaining,
motivating, and developing people at work and ensuring their satisfaction as social
beings.

Scope management ensures a project's scope is accurately defined and mapped

and enables project managers to allocate the proper labor and costs necessary to
complete the project. This is primarily concerned with what is and is not part of the
scope.

Scope and Importance of Management

 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.
 Optimum Utilization of Resources - Management 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 alternate use in industry from out of various uses. It makes use of
experts, professional and these services leads to use of their skills, knowledge,
and proper utilization and avoids wastage. If employees and machines are
producing its maximum there is no under employment of any resources.
 Reduces Costs - It gets maximum results through minimum input by proper
planning and by using minimum input & getting maximum output. Management
uses physical, human and financial resources in such a manner which results in
best combination. This helps in cost reduction.
 Establishes Sound Organization - No overlapping of efforts (smooth and
coordinated functions). To establish sound organizational structure is one of the
objective of management which is in tune with objective of organization and for
 fulfillment of this, it establishes effective authority & responsibility relationship
i.e. who is accountable to whom, who can give instructions to whom, who are
superiors & who are subordinates. Management fills up various positions with
right persons, having right skills, training and qualification. All jobs should be
cleared to everyone.
 Establishes Equilibrium - It enables the organization to survive in changing
environment. It keeps in touch with the changing environment. With the change
is external environment, the initial co-ordination of organization must be
changed. So it adapts organization to changing demand of market / changing
needs of societies. It is responsible for growth and survival of organization.
 Essentials for Prosperity of Society - Efficient management leads to better
economical production which helps in turn to increase the welfare of people.
Good management makes a difficult task easier by avoiding wastage of scarce
resource. It improves standard of living. It increases the profit which is beneficial
to business and society will get maximum output at minimum cost by creating
employment opportunities which generate income in hands. Organization comes
with new products and researches beneficial for society.

Management-Science or Art

Management knowledge exhibits characteristics of both art and science; the two are
not mutually exclusive but supplementary.\

Management as an Art:

Management may be understood as an art on account of the following reasons:

1. The knowledge of Management like other arts has „practical application‟. It is

applied to specific situations for better results. In every situation, manager strives to
solve the problem efficiently or make superior quality decisions to realize the
objectives or meet the target with minimum efforts and resources.

2. With continuous application of management knowledge in various situations, the

manager gains experience. With the passage of time, the manger gathers more and
more experience which becomes his „personal possession‟ and can‟t be transferred.
Consequently, managers having greater experience in using principles of management
become more efficient. They develop more skills and abilities for translating
management knowledge into practice.

3. Application of management knowledge calls for „creativity and innovativeness‟.

On the basis of fundamentals of managerial knowledge, analytical abilities and
foresightedness, the manager goes on discovering new ideas, relationships and more
efficient ways of doing things.

4. In many situations, theoretical knowledge of management may not be adequate or

relevant for solving the problem. It may be due to complexities or uniqueness
involved in the problem. In such a situation, the manager has to rely more on his past
experience, perception, intuition and judgment. Sometimes, the manager may
restructure the problem by applying creativity and personal experience and find a
solution.

Management as a Science: Management, as a science bears the following

characteristics:

1. Management is a „systematic body of knowledge‟ consisting of principles of

generalizations, approaches and concepts which are to be applied in practical
situations. This knowledge helps the managers to understand the process of
management and the problems involved in it.
2. The principles, generalizations and concepts of management have been developed
and formulated on the basis of observation, research, analysis and experimentation as
is in the case with the principle of other sciences.
3. Like other sciences, the management principles are also based on relationship of
„cause and effect‟. They indicate that same cause under similar
situations/circumstances will produce same effect.
4. Management knowledge and its principles are „codified and systematized‟ and can
be transferred form one manager to another and can be taught. Management principles
are „universally applicable‟ to all types organizations. They are generalized in nature,
forming general guidelines for the managers to practice.
5. Thus, on the basis of the basic nature of management knowledge, it is widely
accepted that management is a combination of both art and science. Management
knowledge exhibits characteristics of both art and science; the two are not mutually
exclusive but supplement each other.

Management as a Profession:

Profession has been defined as an occupation for which specialized knowledge, skills
and training are required and the use of these skills is not meant solely for self –
satisfaction, but these are used for larger interests of the society and the success of the
use of these skills is measured not in terms of money alone. The examples of
established professions are medicine and law. To be recognized as a profession,
management must fulfill the following criteria, such as: Specialized body of
knowledge Formal education and training for entry into the profession Professional
association Code of Conduct, and Service Motive. The application of these criteria to
management is examined below:

1.Existence of Knowledge: A profession has a body of knowledge which has to be

studied for being a successful professional. Management has been developed as a
distinct body of knowledge over the past 5 – 6 decades for ensuring effective handling
of complex and large organizations.

2.Acquisition of Knowledge: Like all professions, management‟s knowledge in

systematized and codified form can be acquired and learned through formal education
system and training programs.

3.Professional Association: A professional association consists of firms and

individuals whose membership is based on common professional, scientific or
technical aims. The representative body of professionals is needed to regulate and
develop the professional activities. The body may also prescribe the criteria for
individuals who want to enter the profession, like, Indian Medical Council, Bar
Council of India. In the field of management, there is 'All India Management
Association‟. Similarly in foreign countries there are associations of managers.

4. Ethical Bodies: For every profession, some ethical standards are provided and
every individual of the profession is expected to maintain conformity with these
standards. In management also, a code of conduct has been formulated to suggest the
behavioural pattern for professional managers.

5. Service Motive: This concept suggests that professionals should keep social interest
in their mind while charging fees for their professional services. The service motive
concept further lays that the success of any profession is measured not in terms of
money it earns but by the amount of social service it provides. Management provides
stability to the society by way of integrating various resources into productive units.
This important contribution of management can‟t be measured in terms of money
alone because without integrating effort of management, resources worth millions of
rupees may be useless. The above discussion shows that management possesses
certain characteristics of profession while others are missing. Therefore, it can‟t be
said to be a profession, though it is an „emerging profession‟, ie, emerging as a
profession.

Key Differences Between Management and Administration The major differences

between management and administration are given below:

1. Management is a systematic way of managing people and things within the

organization. The administration is defined as an act of administering the whole
organization by a group of people.
2. Management is an activity of business and functional level, whereas Administration
is a high-level activity.
3. While management focuses on policy implementation, policy formulation is
performed by the administration.
4. Functions of administration include legislation and determination. Conversely,
functions of management are executive and governing.
5. Administration takes all the important decisions of the organization while
management makes decisions under the boundaries set by the administration.

6. A group of persons, who are employees of the organization, is collectively known

as management. On the other hand, administration represents the owners of the
organization.
 7. Management can be seen in the profit making organization like business
enterprises. Conversely, the Administration is found in government and military
offices, clubs, hospitals, religious organizations and all the non-profit making
enterprises.

8. Management is all about plans and actions, but the administration is concerned with
framing policies and setting objectives.

9. Management plays an executive role in the organization. Unlike administration,

whose role is decisive in nature.

10. The manager looks after the management of the organization, whereas
administrator is responsible for the administration of the organization.

11. Management focuses on managing people and their work. On the other hand,
administration focuses on making the best possible utilization of the organization’s
resources.

Comparison Table (Management Vs Administration)

Basic Terms Management Administration

It is the skill of
It is the process of setting
organizing people,
Meaning up objectives and crucial
resources and getting
policies
work done

Both middle and lower

Authority Strictly upper level
level

Core function Policy implementation Policy formulation

Role Executive Decisive

Work under Fully control over

Area of Operation
administration activities

Key Person Manager Administrator

Legislative and
Function Governing and executive
determinative

Main Focus Managing work Making policies and

 assembling resources

Government offices,
business enterprises,
Profit-making military, religious,
Application
organizations hospitals, clubs, and
educational
organizations.

What should be done?

Who will do the work?
Decides on And when should it be
And How will it be done?
done?

Levels of Management

The term “Levels of Management’ refers to a line of demarcation between various

managerial positions in an organization. The number of levels in management
increases when the size of the business and work force increases and vice versa. The
level of management determines a chain of command, the amount of authority &
status enjoyed by any managerial position. The levels of management can be
classified in three broad categories:

1. Top level / Administrative level

2. Middle level / Executory
3. Low level / Supervisory / Operative / First-line managers
4.

Managers at all these levels perform different functions. The role of managers at all
the three levels is discussed below:
LEVELS OF MANAGEMENT
Top Level of Management

It consists of board of directors, chief executive or managing director. The top

management is the ultimate source of authority and it manages goals and
policies for an enterprise. It devotes more time on planning and coordinating
functions.

The role of the top management can be summarized as follows -

1. Top management lays down the objectives and broad policies of the
enterprise.
2. It issues necessary instructions for preparation of department budgets,
procedures, schedules etc.
3. It prepares strategic plans & policies for the enterprise.
4. It appoints the executive for middle level i.e. departmental managers.
5. It controls & coordinates the activities of all the departments.
6. It is also responsible for maintaining a contact with the outside world.
7. It provides guidance and direction.
8. The top management is also responsible towards the shareholders for
the performance of the enterprise.
Middle Level of Management

The branch managers and departmental managers constitute middle level.

They are responsible to the top management for the functioning of their
department. They devote more time to organizational and directional
functions. In small organization, there is only one layer of middle level of
management but in big enterprises, there may be senior and junior middle
level management. Their role can be emphasized as -

9. They execute the plans of the organization in accordance with the

policies and directives of the top management.
10. They make plans for the sub-units of the organization.
11. They participate in employment & training of lower level management.
12. They interpret and explain policies from top level management to
lower level.
13. They are responsible for coordinating the activities within the division
or department.
14. It also sends important reports and other important data to top level
management.
15. They evaluate performance of junior managers.
16. 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 supervisors, foreman, section officers, superintendent etc.
According to R.C. Davis, “Supervisory management refers to those executives
whose work has to be largely with personal oversight and direction of
operative employees”. In other words, they are concerned with direction and
controlling function of management. Their activities include :

1. Assigning of jobs and tasks to various workers.

2. They guide and instruct workers for day to day activities.
3. They are responsible for the quality as well as quantity of production.
 4. They are also entrusted with the responsibility of maintaining good
relation in the organization.
5. They communicate workers problems, suggestions, and appeals etc to
the higher level and higher level goals and objectives to the workers.
6. They help to solve the grievances of the workers.
7. They supervise & guide the sub-ordinates.
8. They are responsible for providing training to the workers.
9. They arrange necessary materials, machines, tools etc for getting the
things done.
10. They prepare periodical reports about the performance of the workers.
11. They ensure discipline in the enterprise.
12. They motivate workers.
13. They are the image builders of the enterprise because they are in direct
contact with the workers.

Functions of Management

Management has been described as a social process involving responsibility for

economical and effective planning & regulation of operation of an enterprise in the
fulfillment of given purposes. It is a dynamic process consisting of various elements
and activities. These activities are different from operative functions like marketing,
finance, purchase etc. Rather these activities are common to each and every manger
irrespective of his level or status.

According to Henry Fayol, “To manage is to forecast and plan, to organize, to

command, & to control”. Whereas Luther Gullick has given a keyword
’POSDCORB’ where P stands for Planning, O for Organizing, S for Staffing, D for
Directing, Co for Co-ordination, R for reporting & B for Budgeting. But the most
widely accepted are functions of management given by KOONTZ and O’DONNEL
i.e. Planning, Organizing, Staffing, Directing and Controlling.

For theoretical purposes, it may be convenient to separate the function of management

but practically these functions are overlapping in nature i.e. they are highly
inseparable. Each function blends into the other & each affects the performance of
others.
Planning

It is the basic function of management. It deals with chalking out a future

course of action & deciding in advance the most appropriate course of actions
for achievement of pre-determined goals. According to KOONTZ, “Planning
is deciding in advance - what to do, when to do & how to do. It bridges the
gap from where we are & where we want to be”. A plan is a future course of
actions. It is an exercise in problem solving & decision making. Planning is
determination of courses of action to achieve desired goals. Thus, planning is a
systematic thinking about ways & means for accomplishment of pre-
determined goals. Planning is necessary to ensure proper utilization of human
& non-human resources. It is all pervasive, it is an intellectual activity and it
also helps in avoiding confusion, uncertainties, risks, wastages etc.

Organizing

It is the process of bringing together physical, financial and human resources

and developing productive relationship amongst them for achievement of
organizational goals. According to Henry Fayol, “To organize a business is to
provide it with everything useful or its functioning i.e. raw material, tools,
capital and personnel’s”. To organize a business involves determining &
providing human and non-human resources to the organizational structure.
Organizing as a proess involves:

1. Identification of activities.
2. Classification of grouping of activities.
3. Assignment of duties.
4. Delegation of authority and creation of responsibility.
5. Coordinating authority and responsibility relationships.

Staffing

It is the function of manning the organization structure and keeping it manned.

Staffing has assumed greater importance in the recent years due to
advancement of technology, increase in size of business, complexity of human
behavior etc. The main purpose o staffing is to put right man on right job i.e.
square pegs in square holes and round pegs in round holes. According to
Kootz & O’Donell, “Managerial function of staffing involves manning the
organization structure through proper and effective selection, appraisal &
development of personnel to fill the roles designed un the structure”. Staffing
involves:

1. Manpower Planning (estimating man power in terms of searching,

choose the person and giving the right place).
2. Recruitment, Selection & Placement.
3. Training & Development.
4. Remuneration.
5. Performance Appraisal.
6. Promotions & Transfer.

Directing

It is that part of managerial function which actuates the organizational

methods to work efficiently for achievement of organizational purposes. It is
considered life-spark of the enterprise which sets it in motion the action of
people because planning, organizing and staffing are the mere preparations for
doing the work. Direction is that inert-personnel aspect of management which
deals directly with influencing, guiding, supervising, motivating sub-ordinate
for the achievement of organizational goals. Direction has following elements:

1. Supervision
2. Motivation
3. Leadership
4. Communication

Supervision- implies overseeing the work of subordinates by their superiors.

It is the act of watching & directing work & workers.

Motivation- means inspiring, stimulating or encouraging the sub-ordinates

with zeal to work. Positive, negative, monetary, non-monetary incentives may
be used for this purpose.

Leadership- may be defined as a process by which manager guides and

influences the work of subordinates in desired direction.

Communications- is the process of passing information, experience, opinion

etc from one person to another. It is a bridge of understanding.

Controlling

It implies measurement of accomplishment against the standards and

correction of deviation if any to ensure achievement of organizational goals.
The purpose of controlling is to ensure that everything occurs in conformities
with the standards. An efficient system of control helps to predict deviations
before they actually occur. According to Theo Haimann, “Controlling is the
process of checking whether or not proper progress is being made towards the
objectives and goals and acting if necessary, to correct any deviation”.
According to Koontz & O’Donell “Controlling is the measurement &
correction of performance activities of subordinates in order to make sure that
the enterprise objectives and plans desired to obtain them as being
accomplished”. Therefore controlling has following steps:

1. Establishment of standard performance.

2. Measurement of actual performance.
 3. Comparison of actual performance with the standards and finding out
deviation if any.
4. Corrective action.

POSDCORB

POSDCORB is an acronym which means Planning, Organizing, Staffing, Directing,

Coordinating, Reporting and Budgeting. POSDCORB can be used as a systematic
framework for efficiently executing business processes in a company or by an
individual.

POSDCORB can be explained sequentially in detail below:

1.Planning

This essentially refers to establishing a broad sketch of the work to be completed and
the procedures incorporated to implement them.

Planning is the first and most important step in POSDCORB as it sets the overall
structure of the process with activities and timelines.

2.Organizing

Organizing involves formally classifying, defining and synchronizing the various sub-
processes or subdivisions of the work to be done. 

It makes sure that the activities and timelines in the first step of planning are refined
and organized further so that right people can be staffed to execute these tasks.

3.Staffing

This involves recruiting and selecting the right candidates for the job and facilitating
their orientation and training while maintaining a favorable work environment.

4.Directing

This entails decision making and delegating structured instructions and orders to
execute them.

Directing is an important step in the POSDCORB cycle as it makes thing happen by

giving clear objectives to teams and individuals.

5.Coordinating
This basically refers to orchestrating and interlinking the various components of the
work.

6.Reporting

Reporting involves regularly updating the superior about the progress or the work
related activities. The information dissemination can be through records or inspection.

7.Budgeting

Budgeting involves all the activities that under Auditing, Accounting, Fiscal Planning
and Control.

Managerial Skills

Good management skills are vital for any organization to succeed and achieve its
goals and objectives. A manager who fosters good management skills is able to propel
the company’s Mission and Vision Statement. A vision statement describes what a
company desires to achieve in the long-run, generally in a time frame of five to ten
years, or sometimes even longer. It or business goals forward with fewer hurdles and
objections from internal and external sources.

Management and leadership skills are often used interchangeably as they both involve
planning, decision-making, problem-solving, communication, delegation, and time
managementTime ManagementTime management is the process of planning and
controlling how much time to spend on specific activities. Good time management
enables an individual to complete more in a shorter period of time, lowers stress, and
leads to career success. This guide provides a list of the top tips for managing time
well. Good managers are almost always good leaders as well.

In addition to leading, a critical role of a manager is to also ensure that all parts of the
organization are functioning cohesively. Without such integration, several issues can
arise and failure is bound to happen. Management skills are crucial for various
positions and at different levels of a company, from top leadership to intermediate
supervisors to first-level managers.

Types of Management Skills

According to American social and organizational psychologist Robert Katz, the three

basic types of management skills include:

1. Technical Skills

Technical skills involve skills that give the managers the ability and the knowledge to
use a variety of techniques to achieve their objectives. These skills not only involve
operating machines and software, production tools, and pieces of equipment but also
the skills needed to boost sales, design different types of products and services, and
market the services and the products.

2. Conceptual Skills

These involve the skills managers present in terms of the knowledge and ability for
abstract thinking and formulating ideas. The manager is able to see an entire concept,
analyze and diagnose a problem, and find creative solutions. This helps the manager
to effectively predict hurdles their department or the business as a whole may face.

3. Human or Interpersonal Skills

 The human or the interpersonal skills are the skills that present the managers’ ability
to interact, work or relate effectively with people. These skills enable the managers to
make use of human potential in the company and motivate the employees for better
results.

Managerial Styles

1. Democratic management style

The democratic management style is rooted in collaboration. These types of leaders seek
input from their employees before making business decisions or delivering solutions. They
engage employees by remaining open to new ideas and experimentation, and granting
employees the freedom to use their voices to share their opinions. This style of
management can create strong bonds between employees and leaders.
 
2. Laissez-faire management style

Laissez-faire leaders are hands-off and maintain a high level of confidence in their
employees. Leaders who adopt this management style don’t micromanage their employees
and grant them freedom to work on their delegated tasks independently. The laissez-faire
leadership style works best when managing highly experienced professionals. When these
self-disciplined employees are given more autonomy, they often demonstrate greater
initiative.
 
3. Autocratic management style

An autocratic management style is centered on results and efficiency, and usually devoid
of employee collaboration and autonomy. An autocratic style leader believes in
micromanaging employees to ensure they follow company policies and rely on authority to
provide instruction. Some aspects of this management style may be useful in an emergency
when unexperienced employees need clear, strict expectations to solve a particular
problem.
 
4. Charismatic management style
Leaders who follow a charismatic management style are charming, highly persuasive and
deeply committed to their cause. Charismatic leaders are also interested in building
personal relationships and rallying their team around a common goal. This style of
management is useful for helping employees feel supported, highly engaged and motivated
toward achieving business objectives.
 
5. Coach management style

Leaders who use the coaching management style often possesses qualities similar to a
sports team coach. They’re dedicated to their employees’ ongoing development and can
quickly identify what motivates each employee to succeed. A coaching leader is skilled in
recognizing each employee’s unique strengths and weaknesses and determining how to
help them become better professionals. They often push employees to complete more
challenging tasks that further develop their talents and improve their areas of opportunity.
 
 
7. Bureaucratic management style

Leaders who adhere to the bureaucratic style of management focus on assigning specific
duties to employees within a well-defined hierarchy. They’re less concerned with
collaboration and more interested in following rules and procedures. Bureaucratic leaders
assign each employee a set of responsibilities and independent tasks, and all work is
streamlined from top to bottom. This style of leadership is useful in heavily regulated
industries, but less effective in creative environments.

Managerial Roles (Mintzberg)

MINTZBERG’S 10 MANAGERIAL ROLES

INTERPERSONAL ROLES:

1. FIGUREHEAD
 As the Figurehead, a manager is responsible for official and social duties that
reflect their status and authority in the organization. It’s about building a strong
relationship with peers and subordinates. You can become a good role model by
being empathetic and compassionate.

2. LEADER

The Leader inspires, encourages, and builds morale. Managers build lasting
relationships with team members by monitoring their performance and coaching
them when needed. Emotional intelligence can help you develop a trust-based
relationship with your team.

3. LIAISON

A manager has to exchange information with various departments and teams as

well as with external stakeholders. Liaising with other organizations, competitors,
and government representatives is equally important for professional development.

INFORMATIONAL ROLES:

1. MONITOR

The Monitor is responsible for gathering intel for sustained competitive advantage.
To do that, a manager has to assess the market for changes and collect relevant
data that could impact the organization. These are stages in the process of strategic
management that helps an organization to survive the competition.

2. DISSEMINATOR

The Disseminator communicates useful and relevant information to team members

and subordinates. It’s important to invite feedback, ideas, and views from each
employee to keep an open channel of communication.

3. SPOKESPERSON

Convey important information about the organization to external stakeholders.

This could be for PR purposes, addressing government policies, or dealing with
 suppliers. You must have a clear idea of your company’s brand image to become a
successful spokesperson.

DECISIONAL ROLES:

1. ENTREPRENEUR

Be prepared to take initiative as part of your managerial duties. Initiate projects

and address concerns with effective problem-solving skills. Icebreakers and team-
building activities will help you connect with your team.

2. DISTURBANCE HANDLER

The Disturbance Handler ensures that everything runs smoothly. Key

responsibilities include resolving conflicts with mentoring sessions, identifying
areas for improvement, and addressing gaps in teamwork.

3. RESOURCE ALLOCATOR

The Resource Allocator is concerned with fund allocation, cutting costs, and
distributing resources across the organization. You have to apportion available
resources such as funding, human resources, and materials where needed.

4. NEGOTIATOR

A successful negotiation leads to a win-win outcome. A manager has to participate

in negotiations with team members and other stakeholders to reach a favorable
outcome for both parties. This role distinguishes you from other managers because
you have to consider your team’s best interests.

Henry Mintzberg’s managerial roles are useful to assess your strengths and
weaknesses as a manager. You can improve your managerial duties with practice and
experience.

Evolution of management Thought

Evolution of Management and Evolution of Management Science. ... Evolution of the
management thought is a process that began in the earlier days of humans. It
began when the man found the need to live in the groups. Then, mighty men soon
organized the masses and distributed them among the groups.

To understand the entire concept of evolution of the management thought, the topic is
divided into 4 major stages, which are as follows:

 Pre-scientific management period

 Classical theory
 Neo-classical theory ( or behaviour approach)
 Bureaucratic Model of Max Weber 

Pre-Scientific Management Period

As the industrial revolution occurred in the 18th century, there was a huge impact on
management. The scenario changed the method of raising capitals, organizing labour,
and goods’ production for the individuals and businesses. Entrepreneurs then had
access to production factors like land, labour, and capital. The final step was only to
make some effort for combining these factors to achieve the target successfully.

The Classical Theory

Robert Owens, Charles Babbage, and other prominent personalities are regarded as
management’s pioneers. However, their contribution to the evolution of management
is lower. Further, by the last decade of 19th century, the science of management
began, and with it, some professionals like H. L. Grant, F. W. Taylor, Emerson, and
others entered for the establishment of scientific management.

The Neo-Classical Theory

This duration of the evolution of the management thought is a better version of

classical theory. It is a modified version of classical theory with several
improvements. The classical theory focused mainly on the areas of job including
physical resources and their management, but neo-classical theory focuses on
employee relationships in the work ecosystem. 

The Bureaucratic Model

Max Weber, a German sociologist, proposed the bureaucratic model. This includes a
system of labour division, rules, authority hierarchy, and employees’ placement based
on their technical capabilities. 

Contribution of F.W.Taylor

 F.W.Taylor, who was a Mechanical Engineer, started the Scientific Management

movement, and he and his associates were the first people to study the work process
scientifically. They studied how work was performed, and they looked at how this
affected worker productivity. Taylor's philosophy focused on the belief that making
people work as hard as they could was not as efficient as optimizing the way the work
was done.In 1909, Taylor published "The Principles of Scientific Management." In
this, he proposed that by optimizing and simplifying jobs, productivity would
increase. He also advanced the idea that workers and managers needed to cooperate
with one another. This was very different from the way work was typically done in
businesses beforehand. A factory manager at that time had very little contact with the
workers, and he left them on their own to produce the necessary product. There was
no standardization, and a worker's main motivation was often continued employment,
so there was no incentive to work as quickly or as efficiently as possible.

Taylor believed that all workers were motivated by money, so he promoted the idea of
"a fair day's pay for a fair day's work." In other words, if a worker didn't achieve
enough in a day, he didn't deserve to be paid as much as another worker who was
highly productive.

Four Principles of Scientific Management

Taylor's four principles are as follows:

1. Replace working by "rule of thumb," or simple habit and common sense, and
instead use the scientific method to study work and determine the most efficient
way to perform specific tasks.
2. Rather than simply assign workers to just any job, match workers to their jobs
based on capability and motivation, and train them to work at maximum efficiency.
3. Monitor worker performance, and provide instructions and supervision to ensure
that they're using the most efficient ways of working.
4. Allocate the work between managers and workers so that the managers spentheir
time planning and training, allowing the workers to perform their tasks efficiently.

The Principles of Taylor's Scientific Management Theory became widely

practiced, and the resulting cooperation between workers and managers
eventually developed into the teamwork we enjoy today. While Taylorism in a
pure sense isn't practiced much today, scientific management did provide many
significant contributions to the advancement of management practice. It
introduced systematic selection and training procedures, it provided a way to
study workplace efficiency, and it encouraged the idea of systematic
organizational design.

Contribution of Henry Fayol

Henry Fayol (1841 -1925) was a French mining engineer who turned a leading
industrialist and a successful manager. He was a mining engineer in a French mining
company and rose to the position of the Chief Managing Director.

Henry Fayol, also known as the ‘father of modern management theory’ gave a new
perception of the concept of management. He introduced a general theory that can be
applied to all levels of management and every department. The Fayol theory is
practised by the managers to organize and regulate the internal activities of an
organization. He concentrated on accomplishing managerial efficiency.

The fourteen principles of management created by Henry Fayol are explained below:

1. Division of Work-

Henri believed that segregating work among the workforce will enhance the quality of
the product. Similarly, he also concluded that the division of work improves the
productivity, efficiency, accuracy and speed of the workers. This principle is
appropriate for both the managerial as well as a technical work level.

2. Authority and Responsibility-

These are the two key aspects of management. Authority facilitates the management
to work efficiently, and responsibility makes them responsible for the work done
under their guidance or leadership.

3. Discipline-

Without discipline, nothing can be accomplished. It is the core value for any project
or any management. Good performance and sensible interrelation make the
management job easy and comprehensive. Employees good behaviour also helps them
smoothly build and progress in their professional careers.

4. Unity of Command-

This means an employee should have only one boss and follow his command. If an
employee has to follow more than one boss, there begins a conflict of interest and can
create confusion.

5. Unity of Direction-

Whoever is engaged in the same activity should have a unified goal. This means all
the person working in a company should have one goal and motive which will make
the work easier and achieve the set goal easily.

6. Subordination of Individual Interest-

This indicates a company should work unitedly towards the interest of a company
rather than personal interest. Be subordinate to the purposes of an organization. This
refers to the whole chain of command in a company.

7. Remuneration-

This plays an important role in motivating the workers of a company. Remuneration

can be monetary or non-monetary. However, it should be according to an individual’s
efforts they have made.

8. Centralization-

In any company, the management or any authority responsible for the decision-
making process should be neutral. However, this depends on the size of an
organization. Henri Fayol stressed on the point that there should be a balance between
the hierarchy and division of power.
9. Scalar Chain-

Fayol on this principle highlights that the hierarchy steps should be from the top to the
lowest. This is necessary so that every employee knows their immediate senior also
they should be able to contact any, if needed.

10. Order-

A company should maintain a well-defined work order to have a favourable work

culture. The positive atmosphere in the workplace will boost more positive
productivity.

11. Equity-

All employees should be treated equally and respectfully. It’s the responsibility of a
manager that no employees face discrimination.

12. Stability of Tenure

An employee delivers the best if they feel secure in their job. It is the duty of the
management to offer job security to their employees.

13. Initiative-

The management should support and encourage the employees to take initiatives in an
organization. It will help them to increase their interest and make then worth.

14. Esprit de Corps-

It is the responsibility of the management to motivate their employees and be
supportive of each other regularly. Developing trust and mutual understanding will
lead to a positive outcome and work environment.

This 14 principles of management are used to manage an organization and are

beneficial for prediction, planning, decision-making, organization and process
management, control and coordination.

Human Relations:

The Human relations movement was a crucial shift in management history.

Here's what it is, and how it changed management.

 Human relations are a critical part of the workplace and have been guided
largely by the basics of the human relations movement.
 It is important for companies to apply the principles of the human relations
movement to their management of employees.
 There are a few key applications of the human relations movement that can be
used to increase employee motivation and improve performance.

Hawthorne experiments were begun in 1927. Industrial psychologists refer to

Hawthorne experiments because of their scope, significance, design and
inclusiveness. Hawthorne experiments represent the most significant research
programme undertaken to show the enormous complexity of the problem of
production relative to efficiency.

They represent a vast improvement over all the other work that has been done in the
field. They show how various problems are inter-related. They demonstrate that
changes in the work environment, hours of work, rest pauses, boredom, fatigue,
monotony, employee attitudes, incentives, formal and non- formal employee
organization and employer-employee relations are all interrelated very intimately.

The Hawthorne experiments can be divided into 4 major parts.

1. Experiments on Illumination
2. Relay Assembly Experiment

3. Mass Interviewing Programme

4. Bank Wiring Observation Room

I. First Experiment on Illumination:

In the first department, inspection of small parts was done, in the second department
the relays were assembled and in the third department, winding of coils was done.

To maintain a ‘Control’ for the experiment, production was measured with all
employees working in the existing conditions of illumination.

In the first department, where the levels of average illumination intensity were 3. 6,
14 and 23 foot candles, the production of the workers varied without any direct
relation to the amount of illumination.

In the second department, where the levels of average illumination intensities were 5,
12, 25 and 44 foot candles, the production increased but not merely as a result of
illumination variation.

In the third department, also the results were the same.

According to show, 1927, “the conclusions brought out very forcibly the necessity of
controlling or eliminating the various additional factors which affected production
output in either the same or opposing directions to that which we can ascribe to
illumination”.

Second Experiment of Illumination:

A single department with two groups of participating workers was used for setting up
this experiment. Better techniques were used and same number of participating
workers having same experience and average production were included in this
experiment.

To maintain a control for the experiments, again the production was measured under
the existing relatively constant illumination.
Third Experiment on Illumination:

The third experiment on illumination was conducted because the second experiment
failed to show exactly what increase in production could be attributed to illumination.

This time, daylight was completely replaced by artificial light, starting with intensity
of 10-foot candles and gradually reducing intensity by 1 foot candle per period until
the time the test group ended up working under intensity of 3 foot candles.

Despite discomfort and insufficient illumination, the test group registered the same
efficiency as before.

The control for this experiment had the employees working under a constant intensity
of 10 foot candles.

Fourth Experiment on Illumination:

In this experiment, two girls volunteered to work in a room receiving gradually

reducing light. Finally the light intensity was lowered to become equal to that of
moonlight.

The two girls not only maintained production but also reported lack of eyestrain and
fatigue compared to conditions of working under bright light.

The fifth experiment was conducted on a test group of girls whose work consisted of
winding coils. At the start of experiment, the intensity of light was increased day by
day. Expressing approval the girls carried on with their work but showed no change in
actual production. Later, even when the lights remained constant or were reduced, the
production was unchanged. Probably the employees reacted not to the changes in
illumination but some other factor.

Hawthorne’s experiments on illumination were basically intended to study the

conditions of work. The main aim was to study the relationship between intensity of
illumination and output but these were disappointing to the investigators because the
employees had reacted not to actual illumination changes but to some other variable
and hence no real change in production had been registered.

II. Relay Assembly Test Room Study:

The illumination experiments had not been satisfactory owing to lack of control over
other variables influencing employee performance. The aim of the Relay Assembly
Test room study was to study the effect of hours of work (or fatigue) and rest pauses
on output.

For this experiment the test group was a group of employees who worked as relay
assemblers. Relay assembly was chosen as the task because it is simple, highly
repetitive, needs no machinery and allows accuracy while measuring production i.e.,
the production depended on individual workers and was easily measurable.

The normal rate of relay assembly is one per minute i.e., approximately 500 per day.
The test group consisted of five girls who had been at the job since years and hence
their production was constant. There was no scope of their production improving with
more practice.

They were put in a special test room only after they consented to become a part of the
test study. Their suggestions were solicited, each change proposed was discussed with
them and in case a change was not approved by them, it was rejected. An observer
was also stationed in the room to record all conversations, elaborate records of
production, other activities and sleeping time rest pauses etc.

The girls worked in the test room for 5 years. During this, a number of work
conditions were changed to study their possible effect on output. During the first stage
of the study, no change was made. The girls could work at the rate comfortable to
them, without hurrying or trying to work as fast as they could.

During the second stage of the study, a change was introduced whereby the girls were
paid according to the output of the five relay assemblers in the test group instead of
being paid in accordance to the production of their original department’s much larger
group.

This change alone accounted for nearly half of the entire 30 percent increase in
production that occurred. Probably the high output by the girls was partly due to their
increased interest in the Experimental Study and their being the centre of attraction.
This explains the speeding up of the assembly of relays which was maintained until
towards the close of the Study. The slowing down towards the close of study is
probably attributed to the test group members’ fear of losing their jobs upon
completion of the experiment being conducted.

The results of the Relay Assembly study showed that the correlation between
output/production records and the experimental variables was zero. This indicated that
there was no relationship between output and hours of work or rest pauses amount of
sleep, lunches physiological measurements and even aptitude measurements.

However, the attitude of the test group improved while production rose and
deteriorated when production declined towards the end. Improvement in attitude was
attributed to group formation within the test group, lack of anxiety due to the informal
atmosphere created by a friendly, approachable supervisor. They no longer feared
their boss who had became an effective informal leader by replacing the restrictive
and excessive supervision with more friendly atmosphere in his leadership.

The Relay Assembly Study demonstrated that attitude and morale have the power to
nullify the negative effects of fatigue, hours of work, rest pauses, monotony,
boredom, aptitude etc. It also highlighted the importance of informal relations, social
groups, effective informal leadership, concepts of participation, successful
supervision and development of team spirit.

III. Mass Interviewing Programme:

The Relay Assembly demonstrated the positive relationship between the morale of
employees and supervision. As an improvement in Supervision was expected to
increase employee morale and in turn production, all efforts were aimed at studying
human relations and attitudes rather than changes in environmental conditions.

Due to lack of availability of factual data on methods of improving supervision, it was

decided to interview all employees to obtain information. 1600 workers employed in
the Inspection branch were included under the mass interview programme in which
three men and two women supervisors would interview them in order to gain
maximum information about employee attitudes regarding supervision, working
conditions and the job etc.
The Mass Interviewing Programme provided the management with plenty of data
regarding employee attitudes and opinions but there was still need for data about the
social groups that existed within the organization as this too exerted considerable
control over the work behavior of the individual members. To obtain more precise
information about the social group formation within the company, the fourth
Hawthorne experiment was planned.

IV. Bank Wiring Observation Room:

The workers in the Bank Wiring Department were selected for this experiment. There
were 9 wiremen, 3 solder men and 2 inspectors. Though a specific task was assigned
to each of them, they had to collaborate with the others in the group. An observer and
interviewer were also involved.

The observer was stationed in the observation room as a mute spectator. He was asked
to just focus on reporting whatever was going on in the room – the formal
organization of the supervisor and employees, the informal group formations of the
workers etc. He was specifically asked to refrain from giving any orders or
demonstrate any authority or interfere in the arguments or discussions going on.

Modern Management View

The modern approaches to management look at organizational management in the

current context. They take a holistic approach and look at organizations as a collection
of interrelated parts influenced by both internal dynamics and also the larger external
environment. These modern management theories have played a significant role in the
evolution of management studies.

Besides the classical and behavioral approaches to management, there are certain

modern approaches to management, like the systems theory and the contingency
theory. These two approaches have significantly shaped modern management thought.

Systems View/Systems Theory of Management

 According to the systems view, an organization cannot exist in isolation. To function
effectively the Management must also consider external environmental factors
influencing the organization.

The two basic types of systems are closed and open systems.

Open System: A system that interacts with this environment is regarded as an open
system. All organizations are open systems as they are dependent on interactions with
their outside environment, whether it is a new product decision or a decision related to
the employees of the organization, the organization must consider the role and
influence of environmental factors.

Closed System: A system that does not interact with its environment is considered a
closed system. A closed system is a relatively self-contained, a self-maintaining unit
that has little interaction or exchange with its environment. An assembly line could be
treated as a closed system as its day-to-day functioning is not dependent on external
forces.

An organizational system can be further divided into four major components:

 Inputs: Inputs are what is put into a system like money, materials, men, machines, and
other informational sources. These inputs are required to produce goods and services.
 Transformation Process: Transformation processes or throughputs are managerial  and
technical abilities that are used to convert inputs into outputs
 Outputs: Outputs are the products, services, profits, and other results produced by the
organization.
 Feedback: Feedback refers to information about the outcomes and the position of the
organization relative to the environment in which it operates.

Contingency View/Contingency Theory

A contingency approach to management is based on the assumption that the optimal
course of management action is contingent (dependent) upon the internal and external
situation. Management actions must change and adapt to specific situations as there is
no best way to organize a corporation. The contingency approach provides a
framework for solving problems based upon the environmental conditions rather than
prescribing a specific solution.

This theory is also known as the situational theory. It has been widely used in recent
years to integrate management theory with the increasing complexity of
organizations. When managers, consultants, and researchers tried to apply the
concepts of the major schools for management to real-life situations they realized that
there is no one best way to manage all situations. Managers need to make business
decisions only after carefully considering all situational factors.

According to the contingency approach, the task of managers is to identify based on

the particular situation and time which decision best will contribute to the attainment
of management goals. Hence this theory holds good for several management
situations.