Management Theory and practice

December 2022 Examination

1. You are hired as a trainer by Sachin Ethanol, a newly setup organization dealing in
manufacturing Ethanol from Sugarcane residue. The CEO wants you to train the newly
recruited management trainees about the Principles of Management. Explain the
principles of Management to these newly recruited employees by taking the help of
Henri Fayol’s 14 Principles of Management? (10 Marks)

Ans 1.
Introduction 
A recently established startup called Sachin Ethanol creates ethanol from sugarcane waste.
The most important aspect of a firm for success is management. To ensure the organization
runs effectively and meets its goals, it is important to focus on all aspects of planning,
organizing, leading, and regulating. The newly hired management students must be
educated on management principles in order to provide them with guidelines for making
managerial decisions that will help the firm develop. This is the role of the trainer. It helps
managers efficiently plan and assign tasks in order to uphold the company's work ethics and
culture and increase employee happiness. Using the management principles as a guide, The
managers can decide which tasks and objectives need to be completed quickly while
maximizing income and making the best use of available resources.

Discussion

The 14 Management Principles of Henri Fayol

The fourteen management approach principles help managers run services effectively while
controlling all the factors to provide sound management for organizational advantage.

1. Task division - The first principle focuses on how the staff will divide up the work so that it
can be completed in detail when they are more seasoned and skilled. Putting this theory
into practice helps the employees develop their skills and keeps them motivated to become
more productive and skillful for business success. It rejects the culture of multitasking.
2. Authorit-. The second principle takes into account authority and responsibility and makes
it clearer to the management how to strike a balance between supervising the workforce
and making sure that each employee carries out instructions to the letter.

3. Discipline - It helps the business run smoothly and creates an organizational culture
where people value one another by abiding by the rules and regulations to maximize profits
and professional growth.

4. Unity of command- It provides the business with the unmistakable instruction that
employees must effectively follow the managers' commands in order to maintain order and
security.

5. Unity of direction - According to the Henry Fayol principle, all employees must work in a
safe atmosphere and execute particular tasks while being observed by their managers.
Reliable results are produced by the employees doing the various tasks as directed by the
manager.

6. Collaborative appeal over personal interest- The principal supports the organization and
gives specific help to stimulate the personnel to increase morale and meet needs rather
than harm the person's interest.

7. Compensation – To encourage employees to work hard and provide high-quality work to

the business, workers must be paid fair wages for their honest efforts. The incomes include
a permanent performance reward and are motivated by both financial and non-financial
factors.

8. Centralization - With the help of procedures and centralization, the top-bottom system
enables the manager to effectively oversee all divisions while maintaining a power balance.

9. Scalar Chain – The principle focuses on effective communication between managers and
employees to manage all divisions, comprehend the needs and wants of the staff, maintain
staff contact, and help the staff members understand the structure for the company's
growth.

10. Order - This principle indicates that in order to promote organizational development and
lessen abuse, it is important to make effective use of resources like people, money, and
materials at the appropriate time and place.
11. Equity - To manage situations and foster employee loyalty for the benefit of the
organization, supervisors must identify equity, such as kindness and justice.

12. Principal assignment equilibrium - The principal oversees the business to reduce
employee turnover and maximize organizational effectiveness by providing great training to
carry out the specifics successfully.

13. Initiative - The principle exhorts the managers to take the initiative to inspire and uplift
their staff members so they feel appreciated and respected.

The final concept of Henry Fayol focuses on teamwork to create a system and collaboration
among employees, improve corporate health and wellness, and increase employee
productivity and effectiveness.

Conclusions

The 14 principles of Henery Fayol offer a way to manage the staff members and individuals
inside an organization and develop a plan to inspire and train employees for a particular task
so they can do it well and achieve the company's goals. The principle develops a profound
awareness of the responsibility and management of personnel, effectively managing the
discipline and work values. Another factor in an organization that makes managers
trustworthy and helps them make wise decisions for the organization's growth, control all
factors, and deal with problems to operate the business is good technical ability. In addition,
to excel as a manager and a corporate leader, This principle supports a wise decision and
assists in regulating and organizing all business operations to achieve desired goals and
success. In short, the principles are very effective in assisting the staff member in increasing
their competence and productivity in order to fulfill the organization's mission and vision.
2. The newly set up management team is divided in their deliberation on a certain topic
and require your help. The core area of this discussion is whether Management is an
Art or a Science. As the chairman of the forum, can you throw some light on whether
Management is an art or a science or both and Why? (10 Marks)

ANSWER ON NEXT PAGE

Ans 2.
Introduction

Management is a potent method that considers planning to manage, organizing, and

effectively employing the resources to achieve the organizational objective and successfully
complete the specified job. Each division of the newly formed management team is debating
a different topic. To clarify whether management is an art, a science, or both, it will help to
have the chairman of the online forum's input. This system is used to complete the task at a
low cost and produce effective results. Management can be viewed as a science, an art, or
both. Truth is provided by science, a fundamental idea that is widely accepted to support
commercial businesses and help managers control the link between many variables. aid with
the arts concurrently

Discussion

Administration as a Science

Science is a disciplined body that disseminates information and offers specific truths that help
to understand phenomena and build the causal chain between diverse variables. It offers
scientific principles and the essential truth to deal with the sources, and it requires specialized
knowledge to deal with the issues and bring about improvement. While art aids in developing
the abilities and expertise needed to handle a variety of supervisory issues, science promotes
learning.

Scientific principles offer the essential truth and comply with the organization's supervisors
for organizational growth and benefit, according to a widely accepted notion. The
fundamental tenet supports all commercial endeavors, including the unity of command, esprit
de corps, and discipline that enable any firm to effectively care for everybody. Monitoring
and experimentation: The concepts, which include examination and study that are in line with
logic to bring monitoring and real-world experiences to enhance the workforce to satisfy the
organization, are supported by medical research.
Relationship with the domino effect: Successful science management aids in comprehension
of the connections between different variables, equilibrium authority, and the responsibility
to bring effectiveness. The absence of this equilibrium has a significant impact on corporate
expansion. For instance, if employees have a great salary and beneficial perks, they will be
inspired to work toward organizational success. However, if they treat them unfairly, item
activity and growth are reduced.

Forecast and credibility: When examined, scientific concepts are dependable and genuine.
They deliver the same outcomes and enable the business to forecast the future and produce
precise outcomes. Leadership as a Practice

To accomplish the desired outcome, management requires knowledge, skill, and both
academic and practical principles.

Practical knowledge: Simply learning a concept does not provide you the superior knowledge
and experience you need to effectively manage and govern an organization in order to
produce positive results and deal with problems. Supervisors can make wise decisions and
deal with a variety of scenarios more effectively when they have a practical understanding of
management as an art.

Personal skill: Practical knowledge broadens the personal skill necessary to carry out tasks
successfully and excel as a manager by enhancing skills, support, experience, and
understanding.
Creativity and innovation: The management of the earth helps the supervisors to become creative
and ingenious to meet the organizational mission and vision, along with knowledge and creative
imagination, help them to utilize the resources effectively for organizational development and
handle Their employees properly to develop innovation to develop a corporate image in the
marketplace."

Bring excellence and a goal: Art in management helps the business achieve its goals for
measurable outcomes, and ongoing training keeps managers at the top of their game and
on top of their jobs to support growth and profit. As a result, the manager becomes superb
and proactive in managing all hazards, providing good services to the business, and creating
a safe environment for the employees.
Conclusion

The study has found that for organizational growth and advancement, science and art are
equally important. The most important component of any organization is its art and science
of management, which serves as a platform for knowledge acquisition, practical application,
and the implementation of organizational culture and guiding principles. In order to
effectively handle difficulties and present trustworthy solutions for corporate growth,
supervisors need to develop their competency knowledge experience alignment with skill,
creativity, and excellence. This is where art and science may help. Training helps supervisors
develop the methods for effectively managing all of their staff members and divisions and
delivering high-quality results to the organization and society. Science aids supervisors in
expanding their knowledge and understanding necessary for professional growth.

3. Lemon Tree, a famous hotel chain in India is losing its market share to its peers. The
major reasons contributing to the same is that there is a lot of conflict in the
organization due to which correct and timely decisions are not being taken. The
company has hired you as a consultant to understand and solve this issue

a. Explain the different types of Conflicts that can arise in an organization? (5 Marks)

Ans 3a.
Introduction
In India, the well-known resort chain Lemon Tree is losing market share to its competitors as
a result of internal disagreements within the company that hinder performance and
expansion. In order to provide effective solutions for the organization's growth, the scientist
has attempted to identify the various conflicting aspects in this area.
Discussion
Disagreement and conflict are inevitable components of any organization. Lack of
comprehension, judgment, and understanding leads to disagreements inside the business,
which has a detrimental impact on productivity and market share. There are numerous
factors at play in the dispute. When timely and proper decisions are not made to address
the issue, a noticeable difference occurs. Conflicts in the company are brought on by the
restricted resources. Conflict arises from a lack of authority and quality because it results in
a lack of control between the manager and the staff. The primary cause of the conflict that
ruins the employees' ability to manage their professional and personal lives directly impacts
the business and results in a legal battle. The most frequent cause of misinterpreting the
causes of conflict in an organization is a lack of clarity and sources. Another contributing
element to the tension is a staff member who must work with more authority due to a staff
member shortage. Conflict results from multitasking because it causes frustration and
dissatisfaction. The unsatisfactory working environment leads to friction and discontent
among the employees, who get easily distracted and frustrated. Conflicts arise when there is
a lack of both incentive and a management system, which makes it impossible to control all
the divisions. Conflicts in the workplace's structure and connections hurt productivity and
discourage employees from working hard to improve efficiency and reach the organization's
objectives.

Conclusion
Human interaction can lead to conflict, which has a negative effect on the productivity of the
employees in the firm. To improve performance, the business must handle the issue and
provide quality services. Additionally, in order to interact with staff members and understand
their needs in order to create a special business strategy for growth, communication must be
improved.

b. Explain what strategies can be used by Lemon Tree to resolve these conflicts? (5
Marks)

Ans 3b.
Introduction 
For the organization to get the best outcomes in terms of productivity, market share,
excellent sales, promotion, and excellent customer partnerships, performance and effective
management are crucial. The management philosophy aids the business in balancing all the
factors necessary to run a successful scientific research service.

Discussion
The hotel Lemon Tree must develop a strategy to handle the disagreement and conflict
appropriately and present a workable solution to the issue. By creating a healthy and
balanced environment for the staff members, an effective management system supports the
company in managing all the divisions, making wise decisions for business development, and
effectively negotiating difficulties. To begin with, the company must improve its practical
communication strategy and schedule frequent meetings with its employees in order to
better understand their concerns, gather feedback for future business development, and
develop a strategy. In order to bring and satisfy consumer demands for products in the
marketplace, a flexible shift and skilled workers reduce workload. Utilizing resources and
enlisting the aid of the neighborhood market aid in business growth and save extra
expenses that are beneficial for organizational expansion. The biggest obstacle to a
company's ability to thrive on the global market with top-notch goods and services is
competition. Effective decisions and reasonable expectations for the employees support and
motivate them to work hard and provide a comfortable, healthy, and balanced work
environment. Correct training, a balanced work environment, and a healthy society help
employees perform well. The employees' opinions should be heard, considered, and
reduced in order to find solutions and advance the business goal. . Correct training, a
balanced work environment, and a healthy society help employees perform well. The
employees' opinions should be heard, considered, and reduced in order to find solutions
and advance the business goal. identifying the problem's underlying cause and, if possible,
coming up with a workable solution to fix the interoffice and external issues. By satisfying all
the stakeholders, modern innovation and workplace changes can also assist the business in
reducing conflict and bringing reliable results. The constructive approach and framework of
strong partnerships with the staff and employees aid in resolving the problems. preserving
spirit and minimizing stress Assist the business in achieving market dominance and
successfully managing the bad situation.

Conclusions
Following a thorough discussion of all the problems and potential solutions, the researcher
has come to the conclusion that improving employee retention, encouragement, and
motivation effectively addresses issues and aids in the company's achievement of a positive
outcome—partnership recognizing the issue and sound organizational technique addressing
the disagreement.