LESSON ONE

Introduction
The concept of management has acquired special significance in the present competitive and
complex business world.

Efficient and purposeful management is absolutely essential for the survival of a business
unit.

Management concept is comprehensive and covers all aspects of business.

In simple words,
management means
 Utilizing available resources in the best possible manner
 for achieving well defined objectives.
It is a distinct and dynamic process involving use of different resources for achieving well
defined objectives.

The resources are

 Human Resources,
 money,
 materials,
 machines,
 Methods
 Markets.

Definitions of Management

General definition
In general terms, management may be defined in two fold:-
Body of Knowledge
Management refers to a body of knowledge that has been accumulated over a period of time
on how affairs of an organization can be conducted
Group of People
The term management refers to a group of people who have been entrusted with running of
the affairs of an organization by the owners of the enterprise.

Definitions by experts
According to George R. Terry,
"Management is a distinct process consisting of planning, organizing, actuating and
controlling, performed to determine and accomplish stated objectives by the use of human
beings and other resources".
According to Henri Fayol,
"To manage is to forecast and to plan, to organize, to command, to coordinate and to control".

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According to Peter Drucker,
"Management is a multi-purpose organ that manages business and manages managers and
manages workers and work".

According to Harold Koontz,

"Management is the art of getting things done through and with people in formally organized
groups”.

According to Mary Parker Fallett,

"Management is the art of getting things done through people".
S. George
“Management consists of getting things done through others. Manager is one who
accomplishes the objectives by directing the efforts of others”.

Newman,Summer and Warren

“The job of management is to make cooperative endeavor to function properly. A manager is
one who gets things done by working with people and other resources”.

Nature/Characteristics of Management

1) Management as a Process
As a process, management consists of three aspects:

i) Management is a social process

 Since human factor is most important among the other factors, therefore
management is concerned with developing relationship among people. It is the duty
of management to make interaction between people - productive and useful for
obtaining organizational goals.
ii) Management is an integrating process
 Management undertakes the job of bringing together human, physical and financial
resources so as to achieve organizational purpose. Therefore, it is an important
function of management to bring harmony between various factors.
iii) Management is a continuous process
 It is a never ending process. It is concerned with constantly identifying the problem
and solving them by taking adequate steps. It is an on-going process.

2) Management as an Activity
. According to Koontz, “Management is what a manager does”.

Management as an activity includes -

i. Informational activities
In the functioning of business enterprise, the manager constantly has to receive and
give information written or orally. A communication link has to be maintained with
subordinates as well as superiors for effective functioning of an enterprise.

ii. Decisional activities

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 Practically all types of managerial activities are based on one or the other types of
decisions. Therefore, managers are continuously involved in decisions of different
kinds since the decision made by one manager becomes the basis of action to be
taken by other managers. (E.g. Sales Manager is deciding the media & content of
advertising).

iii. Inter-personal activities

Management involves achieving goals through people. Therefore, managers have to
interact with superiors as well as the sub-ordinates. They must maintain good
relations with them.

3) Management as a Discipline
Any branch of knowledge that is considered a discipline should fulfill the following two
requirements:
 There must be scholars & thinkers who communicate relevant knowledge through
research and publications.
 The knowledge should be formally imparted by education and training programs.
Since management satisfies both these requirements, therefore it qualifies to be a discipline.
Though it is comparatively new discipline, it is growing at a fast pace.

4) Management as a Group
Management as a group may be looked upon in 2 different ways:

 All managers taken together.

 Only the top management
The interpretation depends upon the context in which these terms are used. Broadly speaking,
there are 3 types of managers -

i. Patrimonial / Family Manager

Those who have become managers by virtue of their being owners or relatives of the
owners of company.
ii. Professional Managers
Those who have been appointed on account of their specialized knowledge and
degree.
iii. Political Managers / Civil Servants
Those who manage public sector undertakings.

Managers have become a part of an elite group of the society as they enjoy higher standards
of living in the society.

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 5) Management as a Science
Science is characterized by following main features:

I. 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. E.g. - law of
gravitation which can be applied in all countries irrespective of the time.
Management also contains some fundamental principles which can be applied
universally like the Principle of Unity of Command i.e. one man, one boss. This
principle is applicable to all type of organization - business or non business.
II. 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 no. of managers. E.g. it is observed that fair
remuneration to personal helps in creating a satisfied work force.
III. Cause & Effect Relationship
Principles of science lay down cause and effect relationship between various
variables. E.g. when metals are heated, they are expanded. The cause is heating &
result is expansion.
This is also true in management, as it seeks to establish a 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 easily i.e. ineffectiveness. Similarly if workers are given bonuses, fair
wages they will work hard but when not treated in fair and just manner, reduces
productivity of organization.
IV. 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 tests will give same result. Moreover
future events can be predicted with reasonable accuracy by using scientific
principles. E.g. H2 & O2 will always give H2O.

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 6) Management As An Art
Art has the following characteristics -

i. 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 colour 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 also know how to apply various principles in real situations by
functioning in the capacity of a manager

ii. Personal Skill

Although theoretical base may be same for every artist, 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. 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 managing things based on his
knowledge, experience and personality, that is why some managers are known as
good managers (like Aditya Birla, Rahul Bajaj) whereas others as bad.

iii. Creativity
Every artist has an element of creativity in line. That is why he aims at producing
something that has never existed before which requires combination of intelligence
& imagination. Management is also creative in nature like any other art. It combines
human and non-human resources in useful ways so as to achieve desired results. It
tries to produce sweet music by combining chords in an efficient manner.
iv. Perfection through practice
Practice makes 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 job of managing.
v. 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,

7) Management as a Profession
The essentials of a profession are:
i. Specialized Knowledge
A profession must have a systematic body of knowledge that can be used for
development of professionals. Every professional must make deliberate efforts to
acquire expertise in the principles and techniques. Similarly a manager must have
devotion and involvement to acquire expertise in the science of management.
ii. Formal Education & Training
There are a no. of institutes and universities to impart education & training for a
profession. No one can practice a profession without going through a prescribed

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 course. Many institutes of management have been set up for imparting education
and training.

iii. Social Obligations

Profession is a source of livelihood but professionals are primarily motivated by the
desire to serve the society. Their actions are influenced by social norms and values.
Similarly a manager is responsible not only to its owners but also to the society and
therefore he is expected to provide quality goods at reasonable prices to the society.

iv. Code of Conduct

Members of a profession have to abide by a code of conduct which contains certain
rules and regulations, norms of honesty, integrity and special ethics. A code of
conduct is enforced by a representative association to ensure self discipline among
its members. Any member violating the code of conduct can be punished and his
membership can be withdrawn.

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

 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.

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3. 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.

4. 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.

5. 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.

6. 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.

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LEVELS OF MANAGEMENT
The three levels of management provide a separation between the managerial positions of the
organization.
The administrative rank of an organization worker determines the extent of authority, the
status enjoyed and the chain of command that can be controlled by the worker. These levels
are:
i. Top-Level Management/Strategic Level
ii. Middle-Level Management/Tactful Level
iii. Low-level Management/Operative Level

The levels of management and their functions are discussed below:

i) Top Level Management/Strategic Level
The Top-Level Management is also referred to as the administrative level.
 They coordinate services and are keen on planning.
 The top-level management is made up o
 f the Board of Directors, the Chief Executive Officer (CEO), the Chief Financial
Officer (CFO) and the Chief Operating Officer (COO) or the President and the Vice
President.

The Top-level management is accountable to the shareholders for the performance of the
organization.
There are several functions performed by the top-level management, but three of them are
the most important, and they are:
 To lay down the policies and objective of the organization
 Strategizing the plans of the enterprise and aligning competent managers to the
departments or middle level to carry them out.
 Keeping the communication between the enterprise and the outside world.

ii) Tactful level/Middle Level of Management

The Middle level Management is also referred to as the executory level.
 They are subordinates of the top-level management and are responsible for the
organization and direction of the low-level management.
 They account for the top-level management for the activities of their departments.
 The middle-level managers are in charge of the employment and training of the lower
levels.
 They are also the communicators between the top level and the lower level as they
transfer information, reports, and other data of the enterprise to the top-level.

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Following are the primary functions of the middle-level management in the organization
briefed below:
 To carry out the plans of the organization according to policies and directives laid
down by the top level management.
 To organize the division or departmental activities.
 To be an inspiration or create motivation for junior managers to improve their
efficiency.

iii) Operative level/Lower Level of Management

The lower level Management is also referred to as the supervisory or the operative level of
managers.
 They oversee and direct the operative employees.
 They spend most of their time addressing the functions of the firm, as instructed by
the managers above them.
Below are the primary functions of the lower-level management:
 To allocate tasks and responsibilities to the operative employees.
 To ensure quality and be responsible for the production quantity.
 To communicate the goals and objective of the firm laid down by the higher level
managers to the employees and also the suggestions, recommendations, appeals and
information concerning employee problems to the higher level managers.
 To give instruction and guided direction to workers on their day to day jobs.
 To give periodic reports of the workers to the higher level managers.

Difference between Management and Administration

According to Theo Haimann,
“Administration means overall determination of policies, setting of major objectives, the
identification of general purposes and laying down of broad programs and projects”.
 It refers to the activities of higher level.
 It lays down basic principles of the enterprise.
According to Newman,
“Administration means guidance, leadership & control of the efforts of the groups towards
some common goals”.

Difference between Management and Administration

The difference between Management and Administration can be summarized under 2
categories:
 Functions ; Usage / Applicability

On the Basis of Functions

Basis Management Administration
Meaning Management is an art of getting things It is concerned with formulation
done through others by directing their of broad objectives, plans &
efforts towards achievement of pre- policies.
determined goals.
Nature Management is an executing function. Administration is a decision-
making function.
Process Management decides who should who it Administration decides what is

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 & how should he do it.
Function Management is a doing function because
managers get work done under their
supervision.
Skills Technical and Human skills
Level Middle & lower level function
On the Basis of Usage: -
Basis Management
Applicability It is applicable to business concerns i.e.
profit-making organization.
Influence The management decisions are
influenced by the values, opinions,
beliefs & decisions of the managers.
Status Management constitutes the employees
of the organization who are paid
remuneration (in the form of salaries &
wages).
Difference between a manager and a leader
Manager- Someone who plans, organizes, and coordinates resources to achieve specific
goals.
Leader- Someone who inspires and motivates others to achieve a common goal.
Basis Manager
Focus Managers focus on the present
and on maintaining the status quo.
Approach Managers use authority to control Leaders use influence to persuade and
and tell people what to do.
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to be done & when it is to be
done.
Administration is a thinking
function because plans &
policies are determined under
it.
Conceptual and Human skills
Top level function
Administration
It is applicable to non-business
concerns i.e. clubs, schools,
hospitals etc.
The administration is
influenced by public opinion,
govt. policies, religious
organizations, customs etc.
Administration represents
owners of the enterprise who
earn return on their capital
invested & profits in the form
of dividend.
Leader
Leaders focus on the future and on
promoting change.
inspire people to do their best.
 Skills Managers need to be able to plan, Leaders need to be able to
organize, and coordinate communicate effectively, build
resources. relationships, and motivate others.

Responsibilities Managers are responsible for
ensuring that tasks are completed
on time and within budget, and
for providing feedback and
coaching to team members.
Leaders are responsible for setting the
vision and direction for the team or
business, and for inspiring and
motivating others to achieve their
goals.

Impact  Managers have a direct impact  Leaders have a direct impact on the
on the day-to-day performance of long-term success of the team or
the team or business. business.

Managerial skills

According to a classic article by Robert L. Katz, managerial success depends primarily on

performance rather than personality traits. He indicates that three types of skills are important
for successful management performance:

a) Conceptual skills.
 Conceptual skill is the cognitive ability to see the organization as a whole and the
relationship among its parts.
 Managers need the mental capacity to understand how various functions of the
organization complement one another, how the organization relates to its
environment, and how changes in one part of the organization affect the rest of the
organization.
b) Human skills.
 The manager needs human skills: the ability to communicate with, understand, and
motivate both individuals and groups.

c) Technical skills.

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  Technical skills are skills necessary to accomplish specialized activities (e.g.,
engineering, computer programming, and accounting).

The diagnostic skill is from Ricky Griffin, and the political skill is from Pavett and Lau :

d) Diagnostic skills.
 Diagnostic skills include the ability to determine, by analysis and examination, the
nature of a particular condition.
 A manager can diagnose a problem in the organization by studying its symptoms.
These skills are also useful in favourable situations.
e) Political skills.
 Political skill is the ability to acquire the power necessary to reach objectives and to
prevent others from taking power.
 Political skill can be used for the good of the organization and for self-interest.

MINTZBERG’S MANAGERIAL ROLES ESSENTIAL FOR A MANAGER.

Managerial Roles:
Henry Mintzberg carried a study of five C.E.O‘s and in his study he asked one basic question
“What did the manager do?” (Mintzberg, 1973) The answer led to a number of fundamental
findings.
These roles are grouped into three major categories as shown below:

i. Informational Roles
ii. Decisional Roles
iii. Interpersonal roles

i) Informational Roles

CATEGORY ROLES DESCRIPTION EXAMPLES

Informational Monitor Seeks and receives Scan/read trade press,

Roles information periodicals, and reports,
monitors the attend seminars and
information and trainings.
maintain personal
contacts either
formal or informal.

Disseminator He is authorized to Send memos and reports;

disseminate/pass inform staff and
information to other subordinates of
staff members. decisions.

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 Spokesman He is the voice and Pass on memos reports
speaks on behalf of and informational
the organization as materials, participates in
far as his conferences/meetings
jurisdiction is and report progress.
concerned either to
the outsiders or
insiders.

ii) Decisional Roles

Interpersonal Roles Figurehead Performs social, Signing legal documents,

ceremonial, legal receiving visitors,
duties and act as a attending ribbon cutting
symbolic leader in ceremonies and hosts
an organization. reception. etc

Leader Directs and Includes almost all

motivates interactions with
subordinates, select subordinates.
and train employees
under his span of
control.

Liaison Maintain the Through business

information link correspondence,
both within and participation in meetings
outside the with representatives of
organization. other divisions or
organizations.

iii) Decisional Roles

Decisional Roles Entrepreneur He identifies new Implement innovation

ideas and initiate and plans for the future
improvement
projects

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 Disturbance Resolves conflict Choose strategic
Handler among subordinates alternatives and
and takes corrective overcome crisis situation.
action.

Resource Sets priorities on Drafts and approves of

allocator who gets resources, plans, schedules, and
scheduling budgets and sets
budgeting among priorities.
various division of
the organization.

Negotiator Defends business Represents the

interests. department during
negotiation of union
contracts, represents
departmental interests
and negotiates various
terms binding as well as
benefiting the company.

Functions of management

The five functions of management are:

1. Planning- Planning involves setting goals and developing a plan to achieve them.
This includes identifying the organization's resources and capabilities, assessing the
competitive landscape, and developing strategies to achieve the organization's goals.
2. Organizing- Organizing involves arranging resources and people in a way that
supports the achievement of goals. This includes creating a structure for the
organization, assigning roles and responsibilities, and delegating authority.
3. Staffing- Staffing involves recruiting, selecting, training, and developing employees.
This includes identifying the organization's staffing needs, developing job
descriptions, recruiting and selecting qualified candidates, and providing employees
with the training and development they need to be successful.
4. Directing- Directing involves motivating and leading employees to achieve goals.
This includes communicating the organization's vision and goals to employees,
providing feedback and coaching, and creating a positive work environment.
5. Controlling- Controlling involves monitoring and evaluating performance to ensure
that goals are being met. This includes setting standards, measuring performance, and
taking corrective action as needed.

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7.0 Henri Fayols 14 Principles of Management

These principles are derived: -

 On the basis of observation and analysis i.e. practical experience of managers.
 By conducting experimental studies.
There are 14 Principles of Management described by Henri Fayol.

1. Division of Labor
 Henri Fayol has stressed on the specialization of jobs.
 He recommended that work of all kinds must be divided & subdivided and allotted to
various persons according to their expertise in a particular area.
 Subdivision of work makes it simpler and results in efficiency.
 It also helps the individual in acquiring speed, accuracy in his performance.
 Specialization leads to efficiency & economy in spheres of business
2. Authority & Responsibility
 Authority & responsibility are co-existing.
 If authority is given to a person, he should also be made responsible.
 In a same way, if anyone is made responsible for any job, he should also have
concerned authority.
 Authority refers to the right of superiors to get exactness from their sub-ordinates
whereas responsibility means obligation for the performance of the job assigned.
 There should be a balance between the two i.e. they must go hand in hand.
 Authority without responsibility leads to irresponsible behavior whereas
responsibility without authority makes the person ineffective.
3. Unity of command/ Principle of One Boss
 A sub-ordinate should receive orders and be accountable to one and only one boss
at a time.

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 In other words, a sub-ordinate should not receive instructions from more than one
person.
4. Unity of Direction
 Fayol advocates one head one plan which means that there should be one plan for a
group of activities having similar objectives.
 Related activities should be grouped together. There should be one plan of action for
them and they should be under the charge of a particular manager.
 According to this principle, efforts of all the members of the organization should be
directed towards common goal.
 Without unity of direction, unity of action cannot be achieved.
 In fact, unity of command is not possible without unity of direction.

5. Equity
 Equity means combination of fairness, kindness & justice.
 The employees should be treated with kindness & equity if devotion is expected of
them.
 It implies that managers should be fair and impartial while dealing with the
subordinates.
 They should give similar treatment to people of similar position.
 They should not discriminate with respect to age, caste, sex, religion, relation etc.
 Equity is essential to create and maintain cordial relations between the managers
and sub-ordinate.
 But equity does not mean total absence of harshness.
 Fayol was of opinion that, “at times force and harshness might become necessary for
the sake of equity”.
6. Order
 This principle is concerned with proper & systematic arrangement of things and
people.
 Arrangement of things is called material order and placement of people is called
social order.
 Material order- There should be safe, appropriate and specific place for every article
and every place to be effectively used for specific activity and commodity.
 Social order- Selection and appointment of most suitable person on the suitable job.
There should be a specific place for every one and everyone should have a specific
place so that they can easily be contacted whenever need arises.
7. Discipline
 According to Fayol, “Discipline means sincerity, obedience, respect of authority &
observance of rules and regulations of the enterprise”.
 This principle applies that subordinate should respect their superiors and obey their
order.
 It is an important requisite for smooth running of the enterprise.
 Discipline is not only required on path of subordinates but also on the part of
management.
8. Initiative
 Workers should be encouraged to take initiative in the work assigned to them.
 It means eagerness to initiate actions without being asked to do so.

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 Fayol advised that management should provide opportunity to its employees to
suggest ideas, experiences& new method of work.
 It helps in developing an atmosphere of trust and understanding.
 People then enjoy working in the organization because it adds to their zeal and
energy.
 To suggest improvement in formulation & implementation of place.
 They can be encouraged with the help of monetary & non-monetary incentives.
9. Fair Remuneration
 The quantum and method of remuneration to be paid to the workers should be fair,
reasonable, satisfactory & rewarding of the efforts.
 As far as possible it should accord satisfaction to both employer and the employees.
 Wages should be determined on the basis of cost of living, work assigned, financial
position of the business, wage rate prevailing etc.
 Logical & appropriate wage rates and methods of their payment reduce tension &
differences between workers & management creates harmonious relationship and
pleasing atmosphere of work.
 Fayol also recommended provision of other benefits such as free education, medical
& residential facilities to workers.
10. Stability of Tenure
 Fayol emphasized that employees should not be moved frequently from one job
position to another i.e. the period of service in a job should be fixed.
 Therefore employees should be appointed after keeping in view principles of
recruitment & selection but once they are appointed their services should be served.
 According to Fayol. “Time is required for an employee to get used to a new work &
succeed to doing it well but if he is removed before that he will not be able to render
worthwhile services”.
 As a result, the time, effort and money spent on training the worker will go waste.
 Stability of job creates team spirit and a sense of belongingness among workers
which ultimately increase the quality as well as quantity of work.
11. Scalar Chain
 Fayol defines scalar chain as ’The chain of superiors ranging from the ultimate
authority to the lowest”.
 Every orders, instructions, messages, requests, explanation etc. has to pass through
Scalar chain.

12. Sub-Ordination of Individual Interest to General Interest

 An organization is much bigger than the individual it constitutes therefore interest of
the undertaking should prevail in all circumstances.
 As far as possible, reconciliation should be achieved between individual and group
interests.
 But in case of conflict, individual must sacrifice for bigger interests.
 In order to achieve this attitude, it is essential that -
 Employees should be honest & sincere.
 Proper & regular supervision of work.
 Reconciliation of mutual differences and clashes by mutual agreement. For example,
for change of location of plant, for change of profit sharing ratio, etc.
13. Centralization & De-Centralization

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 Centralization means concentration of authority at the top level. In other words,
centralization is a situation in which top management retains most of the decision
making authority.
 Decentralization means disposal of decision making authority to all the levels of the
organization. In other words, sharing authority downwards is decentralization.
 According to Fayol, “Degree of centralization or decentralization depends on no. of
factors like size of business, experience of superiors, dependability & ability of
subordinates etc.
 Anything which increases the role of subordinate is decentralization & anything
which decreases it is centralization.
 Fayol suggested that absolute centralization or decentralization is not feasible. An
organization should strike to achieve a lot between the two.
14. Espirit De’ Corps (can be achieved through unity of command)
 It refers to team spirit i.e. harmony in the work groups and mutual understanding
among the members.
 Spirit De’ Corps inspires workers to work harder.
 Fayol cautioned the managers against dividing the employees into competing groups
because it might damage the moral of the workers and interest of the undertaking in
the long run.
 To inculcate Espirit De’ Corps following steps should be undertaken -
 There should be proper co-ordination of work at all levels
 Subordinates should be encouraged to develop informal relations among
themselves.
 Efforts should be made to create enthusiasm and keenness among
subordinates so that they can work to the maximum ability.
 Efficient employees should be rewarded and those who are not up to the
mark should be given a chance to improve their performance.
 Subordinates should be made conscious of that whatever they are doing
is of great importance to the business & society.

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