MANAGEMENT - SCIENCE OR ART

MANAGER VS ENTREPRENEUR

R.Arun Kumar, AP/Mech, RIT

FUNCTIONS OF MANAGEMENT:

 Henri Fayol, a French businessman, first proposed in the

early part of 20th century the various functions of a manager.

R.Arun Kumar, AP/Mech, RIT

1) Planning

2) Organizing

3) Commanding

4) Coordinating

5) Controlling
FUNCTIONS OF MANAGEMENT:

 In recent days these functions have been condensed to four:

R.Arun Kumar, AP/Mech, RIT

1) Planning

2) Organizing

3) Leading

4) Controlling
1. Planning:

Defining the goals, establishing strategy and developing

plans to coordinate activities.

R.Arun Kumar, AP/Mech, RIT

2. Organizing:

Determining what needs to be done, how it will be done

and who is to do it.

R.Arun Kumar, AP/Mech, RIT

3. Leading:

Motivating, leading any other actions involved in dealing

with people.

R.Arun Kumar, AP/Mech, RIT

4. Controlling:

Monitoring activities to ensure that they are

accomplished as planned.

R.Arun Kumar, AP/Mech, RIT

FEATURES OF MANAGEMENT:

 Group activity

 Goal oriented

 Factor of production (org)

R.Arun Kumar, AP/Mech, RIT

 Invisible force

 Integrative Process

 Social process

 Eternity

 Universality

 Intellectual exercise

 Profession
MANAGEMENT – AN ART OR SCIENCE

R.Arun Kumar, AP/Mech, RIT

Or
 MANAGEMENT – AS A SCIENCE

 Science is a systematic body of knowledge relating to a

specific field of study that contains general facts which
explains a phenomenon.

R.Arun Kumar, AP/Mech, RIT

 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.
Universally accepted principles:
 Scientific principles represent basic truth about a particular
field of enquiry.
 These principles may be applied in all situations, at all time
& at all places.

R.Arun Kumar, AP/Mech, RIT

Experimentation and observation:
 Scientific principles are derived through scientific investigation &
researching i.e. they are based on logic.
 Management principles are also based on scientific enquiry
and observation.

R.Arun Kumar, AP/Mech, RIT

 They have been developed through experiments and practical
experiences of large number of managers.

Example:
 The principle that earth revolves the sun has been scientifically
proved.
 It is observed that fair remuneration to personal helps in
creating a satisfied work force.
Cause and effect relationship:
 When metals are heated, they are expanded. The cause is
heating & result is expansion.
 Similarly if workers are given bonuses, fair wages they will
work hard but when not treated in fair and just manner, reduces

R.Arun Kumar, AP/Mech, RIT

productivity of organization.
Test of validity and predictability:
 Validity of scientific principles can be tested at any time or any
number of times i.e. they stand the time of test.
 Moreover future events can be predicted with reasonable
accuracy by using scientific principles.

R.Arun Kumar, AP/Mech, RIT

Examples:
The chemical combination of Hydrogen and Oxygen will give
water.
Similarly, principle of unity of command can be tested by
comparing two persons – one having single boss and one having two
bosses, the performance of first person is better than second.
Conclusion:
 The reason for the inexactness of science of management is
that it deals with human beings and it is very difficult to predict
their behavior accurately.
 Since it is a social process, therefore it falls in the area of

R.Arun Kumar, AP/Mech, RIT

social sciences.
 Ernest Dale has called it as a Soft Science.
 MANAGEMENT – AS AN ART

 An art requires the qualities: practical knowledge,

personal skill, creativity, perfection through practice,
goal oriented.

R.Arun Kumar, AP/Mech, RIT

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.

R.Arun Kumar, AP/Mech, RIT

Example:
 A manager can never be successful just by obtaining degree
in management; he must have also know how to apply various
principles in real situations by functioning in capacity 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 why the level of success and quality of performance differs
from one person to another.

R.Arun Kumar, AP/Mech, RIT

Example:
 Several qualified painters exist but M.F. Hussain is recognized
for his style. Similar in case of managers.
Creativity:
 Every artist has an element of creativity in line.
 Management is also creative in nature like any other art.
 It combines human and non-human resources in an useful
way so as to achieve desired results.

R.Arun Kumar, AP/Mech, RIT

Example:
Perfection through practice:
 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

R.Arun Kumar, AP/Mech, RIT

initially but application of management principles over the years
makes them perfect in the job 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.

R.Arun Kumar, AP/Mech, RIT

 Managers use various resources like men, money, material,
machinery & methods to help in the growth of an organization.
MANAGEMENT – AN ART AS WELL AS SCIENCE
 It is considered as a science because it has an organized body
of knowledge which contains certain universal truth.
 It is called an art because managing requires certain skills
which are personal possessions of managers.

R.Arun Kumar, AP/Mech, RIT

 Science teaches to ’know’ and art teaches to ’do’.
 A manager to be successful in his profession must acquire the
knowledge of science & the art of applying it.

&
 R.Arun Kumar, AP/Mech, RIT
MANAGER VS ENTREPRENEUR

VS
 BASED ON FUNCTIONS

R.Arun Kumar, AP/Mech, RIT

Manager Entrepreneur
 Performs the basic functions  Main function is to reform or
such as planning, revolutionize the factors of
organising, directing and production such as:
controlling. land, capital, labour,
organization, enterprise.
 BASED ON EDUCATION

R.Arun Kumar, AP/Mech, RIT

Manager Entrepreneur
 A person can become a  They learn by trial and
manager by the acquisition error method.
of knowledge through  They learn from their own
formal education in mistakes and mistakes of
business management others.
(MBA)
 They are self made.
 BASED ON JOINING THE ORGANIZATION

R.Arun Kumar, AP/Mech, RIT

Manager Entrepreneur

 They join the business only  They are founders of the

after it is established organization.
 BASED ON WORK NATURE

R.Arun Kumar, AP/Mech, RIT

Manager Entrepreneur
 They sets objectives,  They spot out
policies, procedures, opportunities, raise
rules, strategies and capital, hire labour,
formal communication arrange supply of raw
network. materials, finding site and
introduce new techniques.
 BASED ON DESIRE

R.Arun Kumar, AP/Mech, RIT

Manager Entrepreneur
 They desire to produce best  They are the owners of the
results in the shortest time business.
and least cost and to  They visualizes a business,
achieve profit and growth. take bold decisions to
establish and undertaking
and bear the risk of
uncertainties.
 BASED ON DIFFERENT NAMES

R.Arun Kumar, AP/Mech, RIT

Manager Entrepreneur
 Disturbance handler,  Risk taker,
 Resource allocator,  Uncertainty bearer,
 Negotiator,  Problem solver,
 Spokesperson,  Innovator and
 Liaison officer and  Idealist.
 Disseminator
 BASED ON FAILURE

R.Arun Kumar, AP/Mech, RIT

Manager Entrepreneur
 Failure of a manager results  Leads to great loss of
in little loss to his career money and career.
and he can join another
company.
 BASED ON WORK LIMITS

R.Arun Kumar, AP/Mech, RIT

Manager Entrepreneur

 Manager has to work  He/she has full freedom of

within the framework of work.
policy guidelines laid down  He has the chance of
by the entrepreneur. working independently and
can show their talent.
 BASED ON SALARY

R.Arun Kumar, AP/Mech, RIT

Manager Entrepreneur

 Managers are entitled to  Supplies all capital needed

receive salaries for their to run the organization.
job.  He/she enjoys the profit of
the business
 BASED ON EXPERTISE

R.Arun Kumar, AP/Mech, RIT

Manager Entrepreneur
 Managers are specialists.  They are generalists.
 They are focused on  They need to know about
managing and growing a everything.
business.
 BASED ON REWARDS

R.Arun Kumar, AP/Mech, RIT

Manager Entrepreneur

Rewards come in the form of  Capital gains,

 Salaries,  Asset acquisition and
 Promotions,  Cash flow
 Job title,
 Bonus and incentives.
 BASED ON DECISION MAKING

R.Arun Kumar, AP/Mech, RIT

Manager Entrepreneur

 Cannot make quick  Can make quick decisions.

decisions.  They need not consult with
 Need some consultants. anyone while making
decisions.
 BASED ON LIABILITIES

R.Arun Kumar, AP/Mech, RIT

Manager Entrepreneur

 Managers have no  Payments dues for loans,

liabilities salaries for staff are the
liabilities.
 BASED ON RISK

R.Arun Kumar, AP/Mech, RIT

Manager Entrepreneur

 Do not like to take risk.  They thrive on risk and

uncertainty.