Unit 1 Principles of Management PDF

**SRMS INTERNATIONAL BUSINESS SCHOOL, LUCKNOW** **SEMESTER: i** **COURSE CODE: BBA101** **Batch (2024-27)** **SUBJECT: Principles of Management** **QUESTION BANK UNIT-I** **Q1. Define the concept of Management.** The word 'management' can be styled as---Management (i.e., manage-men- tactfully...

**SRMS INTERNATIONAL BUSINESS SCHOOL, LUCKNOW** **SEMESTER: i** **COURSE CODE: BBA101** **Batch (2024-27)** **SUBJECT: Principles of Management** **QUESTION BANK UNIT-I** **Q1. Define the concept of Management.** The word 'management' can be styled as---Management (i.e., manage-men- tactfully). Traditionally, management means "managing men tactfully to get the things done through others". But the modern approach to management is much broader in scope than the traditional one. It involves all kinds of activities which determine the objectives of the organization. Management can be defined as all the activities and tasks were undertaken for the purpose of achieving an objective or goal by continuous activities like; planning, organizing, leading and controlling. Management is the combined or interchanged process of planning, decision making, organizing, leading, motivation and controlling the human resources, financial, physical, and information resources of an organization to reach its goals in an efficient and effective manner. 1. - Management is what management does.It is the task of planning , executing and controlling. -- James L.Lundy - 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.- George R.Terry **2.Productivity Concept -- Art of increasing productivity.** - Management is the art of knowing exactly what you want people to do and seeing that they do it in the best and cheapest way -- F.W Taylor **3.Human Relation Concept -- It is an art of working with and through people.** - Management is the art of getting things done through and with people in formally organised groups.- Harold Koontz - Manager is the one who accomplishes the objectives by directing the effort of others.- Claude S.George **4. Decision Making and Leadership Concept** -- It is an art and science of decision making and leadership. - Management is simply the process of decision making and control over the action of human beings for the express purpose of attaining predetermined goals. -- Stanley Vance - Management is the function of executive leadership anywhere. -- Ralph C.Davis **5.Integration Concept -- Modern Management** - Management is defined as the process of planning , organizing ,actuating and controlling an organisations operation in order to achieve co-ordination of the human and material resources essential in the effective and efficient attainment of objectives. -- Robert L.Trewaha and M.Gene Newport **Features of Management-as a Process:** 1. **Continuous Process**: The task of the manager does not finish even after performing the last function of management i.e., controls. His job again starts with the planning function and so on. So, management is a continuous process. **2. Integrating Process:** All the functions of the management viz., planning, organising, staffing, directing, controlling are performed for integrating the human and material resources for attainment the goals of the organization. Therefore, the management is an integrating process. **3. Social Process:** Management deals with human beings. A manager directs co-ordinates and controls the activities of the human beings in order to achieve the pre-determined objectives. Thus, management deals with the human beings. So, it is also a social process. 4\. **Universal Process** -- The principles of management are applicable to all types of enterprises whether small or big units such as multinational companies. 5\. **Interactive Process** -- The functions of management are interwoven i.e two or more functions may be performed at a time. For Ex -- While preparing a plan a manager also sets the standards for control. **Q2.Discuss the objectives of Management.** 1\. **Optimum Utilization of Resources** -- The management tries to use various resources of the enterprise in a most economical manner. Use of men, materials, machines and money in a proper way will help a customer, proprietor, employees and other sections of society. All these interest will be served well only when physical resources of the business are utilized in a efficient manner. 2\. **Planning for future** - Management prepares a prospective plan for future. No management should feel satisfied with today's work. Future plans should take into consideration what is to be done next. Future performance will depend upon present planning. So, planning for future is essential to every organization. 3.**Change and Innovation** -- An organization operates in a dynamic environment. Management should always focus on technological and other innovations so that the organization can face the challenges due to the uncertainty of future. Continuous research and development are necessary for developing new and better methods. 4\. **Ensuring regular supply** -- Management has to ensure that the goods are supplied to the people in a regular manner. It keeps a check on the artificial scarcity of goods in the market. Hence, it keeps the price of goods within permissible limits. 5\. **Discipline and Morale** -- Management aims at improving discipline among people and boosts the morale of the individuals by applying the principles of decentralization and delegation of authority. It motivates the employees through monetary and non­monetary incentives. It helps in creating and maintaining better work culture. 6\. **Better Quality Goods** -- Management always tries to produce the better quality products at minimum cost. Hence it tries to remove all types of wastage in business. 7**. Promotion of research and development** - Management undertakes the research and development to take lead over its competitors and meet the uncertainties of the future. Thus, it provides the benefits of latest research and technology to the society. 8. **Minimize the element of risk** -Management involves the function of forecasting. Though the exact future can never be predicted yet on the basis of previous experience and existing circumstances, management can minimize the element of risk. Management always keeps its ears and eyes to the changing circumstances. 9**. Improving performance** - Management should aim at improving the performance of each and every factor of production. The environment should be so compatiable that workers are able to contribute their maximum to the enterprise. 10\. **Improving Image** -- Good management always attempts to build and maintain a sound image of the organization. For this purpose, management ensures efficient and smooth running of business through better planning and effective control. **Q3. Explain the term 'Management\'. Also discuss the scope of management.** **OR** **Q Explain the term 'Management'. Also discuss the nature and scope of management.** **MANAGEMENT FUNCTIONS /PROCESS OF MANAGEMENT/ SCOPE OF MANAGEMENT** There is enough disagreement among management writers on the classification of managerial functions. Newman and Summer recognize only four functions, namely, planning, organizing, leading and controlling. Henri Fayol identifies five functions of management, viz. planning, organizing, commanding, coordinating and controlling. Luther Gulick states seven such functions under the catch word \"POSDCORB\' which stands for planning, organizing, staffing, directing, coordinating, reporting and budgeting. Warren Haynes and Joseph Massie classify management functions into decision-making, organizing, staffing, planning, controlling, communicating and directing. Koontz and O\'Donnell divide these functions into planning organizing, staffing, directing and controlling. For our purpose, we shall designate the following six as the functions of a manager: planning, organizing, staffing, directing, coordinating and controlling. 1\. Planning : Planning is the most fundamental and the most pervasive of all management functions. If people working in groups have to perform effectively, they should know in advance what is to be done, what activities they have to perform in order to do what is to be done, and when it is to be done. Planning is concerned with \'what\', \'how, and \'when\' of performance. It is deciding in the present about the future objectives and the courses of action for their achievement. It thus involves: \(a) determination of long and short-range objectives; \(b) development of strategies and courses of actions to be followed for the achievement of these objectives; and \(c) formulation of policies, procedures, and rules, etc., for the implementation of strategies, and plans. 2\. Organizing : Organizing involves identification of activities required for the achievement of enterprise objectives and implementation of plans; grouping of activities into jobs; assignment of these jobs and activities to departments and individuals; delegation of responsibility and authority for performance, and provision for vertical and horizontal coordination of activities.. Organizing thus involves the following sub-functions : \(a) Identification of activities required for the achievement of objectives and implementation of plans. \(b) Grouping the activities so as to create self-contained jobs. \(c) Assignment of jobs to employees. \(d) Delegation of authority so as to enable them to perform their jobs and to command the resources needed for their performance. \(e) Establishment of a network of coordinating relationships. Organizing process results in a structure of the organization. 3\. Staffing : Staffing is a continuous and vital function of management. After the objectives have been determined, strategies, policies, programmes, procedures and rules formulated for their achievement, activities for the implementation of strategies, policies, programmes, etc. identified and grouped into jobs, the next logical step in the management process is to procure suitable personnel for manning the jobs. It comprises several subfunctions : \(a) Manpower planning involving determination of the number and the kind of personnel required. \(b) Recruitment for attracting adequate number of potential employees to seek jobs in the enterprise. \(c) Selection of the most suitable persons for the jobs under consideration. \(d) Placement, induction and orientation. \(e) Transfers, promotions, termination and layoff. \(f) Training and development of employees. 4\. Directing : Directing is the function of leading the employees to perform efficiently, and contribute their optimum to the achievement of organizational objectives. Jobs assigned to subordinates have to be explained and clarified, they have to be provided guidance in job performance and they are to be motivated to contribute their optimum performance with zeal and enthusiasm. The function of directing thus involves the following sub-functions : (a) Communication (b) Motivation (c) Leadership 5\. Coordination : Coordinating is the function of establishing such relationships among various parts of the organization that they all together pull in the direction of organizational objectives. It is thus the process of tying together all the organizational decisions, operations, activities and efforts so as to achieve unity of action for the accomplishment of organizational objectives. 6\. Controlling : Controlling is the function of ensuring that the divisional, departmental, sectional and individual performances are consistent with the predetermined objectives and goals. Deviations from objectives and plans have to be identified and investigated, and correction action taken. Deviations from plans and objectives provide feedback to managers, and all other management processes including planning, organizing, staffing, directing and coordinating are continuously reviewed and modified, where necessary. Controlling implies that objectives, goals and standards of performance exist and are known to employees and their superiors,controlling involves the following process : \(a) Measurement of performance against predetermined goals. \(b) Identification of deviations from these goals. \(c) Corrective action to rectify deviations. **Q4. Define the term 'Management'. Also discuss features and significance of management.** **OR** **State the characteristics of Management.** 1\. **Economic Resource** : Management is one of the factors of production together with land, labour and capital. Efficient management is the most critical input in the success of any organized group activity as it is the force which assembles and integrates other factors of production, namely, labour, capital and materials. Thus, management is an essential ingredient of an organization. 2\. **Goal Oriented** : Management is a purposeful activity. It coordinates the efforts of workers to achieve the goals of the organization. The success of management is measured by the extent to which the organizational goals are achieved. 3\. **Distinct Process :** Management is a distinct process consisting of such functions as planning, organizing, staffing, directing and controlling. These functions are so interwoven that it is not possible to lay down exactly the sequence of various functions or their relative significance. 4\. **Integrative Force** : The essence of management is integration of human and other resources to achieve the desired objectives. All these resources are made available to those who manage. Managers apply knowledge, experience and management principles for getting the results from the workers by the use of non-human resources. 5\. **System of Authority** : Management as a team of managers represents a system of authority, a hierarchy of command and control. Managers at different levels possess varying degree of authority. Authority enables the managers to perform their functions effectively. 6\. **Multi-disciplinary Subject** : Management has grown as a field of study (i.e. discipline) taking the help of so many other disciplines such as engineering, anthropology, sociology and psychology. Much of the management literature is the result of the association of these disciplines. For instance, productivity orientation drew its inspiration from industrial engineering and human relations orientation from psychology. 7\. **Universal Application** : Management is universal in character. The principles and techniques of management are equally applicable in the fields of business, education, military, government and hospital. Henri Fayol suggested that principles of management would apply more or less in every situation. **Q5. Is Management a Science , an Art or a Profession.** Management as a Science:Science can be defined as a systematic and organised body of knowledge based on logically observed findings, facts and events. Science comprises of exact principles which can be verified and it can establish cause and effect relations. Main characteristics/features of science are: 1.**Systematic body of knowledge**:In science organised and systematic study material is available which is used to acquire the knowledge of science. Like science in management also there is availability of systematic and organised study material. So first feature of science is present in management. 2**. Scientific principles are derived on the basis of logical and scientific observations**: Managers are observing human beings and observation of human being cannot be purely logical and objective.Some kind of subjectivity enters in the observations so this feature of science is not present in management. All the scientific principles have same effect, wherever we try them whereas effect of management principles varies from one situation to other. **3.Principles are based on repeated experiments**:Before developing scientific principles scientists test these principles under different conditions and places. Similarly, managers also test and experiment managerial principles under different conditions in different organisations. So this feature of science is present in management. **4.Universal Validity**: Scientific principles have universal application and validity. Management principles are not exact like scientific principles so their application and use is not universal. They have to be modified according to the given situation. So this feature of science is not present in management. **5.Replication is possible**: In management managers have to conduct research or experiments on human beings. So if' two managers are investigating same data, on different sets of human beings they will not get identical or same result because human beings never respond in exactly identical manner. So this feature of science is also not present in management. **Management as an Art:** The main features of art are: **1.Systematic body of knowledge/Existence of theoretical knowledge:**In every art there is systematic and organized study material available to acquire theoretical knowledge of the art. For example, various books on different ragas are available in music. In management also there is systematic and organised body of knowledge available which can help in acquiring managerial studies. So this feature of art is present in management also. **2. Personalised application**:In the field of art only theoretical knowledge is not enough. Every artist must have personal skill and creativity to apply that knowledge. For example, all musicians learn same ragas but they apply these ragas according to their personal skill and creativity which makes them different. In management also all managers learn same management theories and principles. But their efficiency depends on how well they use these principles under different situations by applying personal skills and creativity so this feature of art is also present in management. **3. Based on Practice and creativity:**The artist requires regular practice of art to become more fine and perfect. Without practice artists lose their perfection. Art requires creative practice, i.e., artist must add his creativity to the theoretical knowledge he has learned. Same way with experience managers also improves their managerial skills and efficiency. So this feature of art is also present in management. **Management: Both Science and Art**:Management is both science as well as art. Like science it has systematic and well- organised body of knowledge and like art it requires personal skill, creativity and practice to apply such knowledge in the best possible way. Science and art are not in contrast to each other; both exist together in every function of management. **Management as a Profession:** Profession can be defined as an occupation backed by specialised knowledge and training, in which entry is restricted. The main features of profession are: 1. **Well defined Body of knowledge**:In every profession there is practice of systematic body of knowledge which helps the professionals to gain specialised knowledge of that profession. In case of management also there is availability of systematic body of knowledge. There are large numbers of books available on management studies. Scholars are studying various business situations and are trying to develop new principles to tackle these situations. So presently this feature of profession is present in management also. 2. **Restricted Entry:**The entry to a profession is restricted through an examination or degree. For example a person can practice as Doctor only when he is having MBBS degree.Whereas there is no legal restriction on appointment of a manager, anyone can become a manager irrespective of the educational qualification. But now many companies prefer to appoint managers only with MBA degree. So presently this feature of profession is not present in management but very soon it will be included with statutory backing. 3. **Presence of professional associations**:For all the professions, special associations are established and every professional has to get himself registered with his association before practising that profession. For example, doctors have to get themselves registered with Medical Council of India, lawyers with Bar Council of India etc.In case of management various management associations are set up at national and international levels which have some membership rules and set of ethical codes, for example, AIMA in New Delhi, National Institute of Personal Management at Calcutta etc., but legally it is not compulsory for managers to become a part of these organisations by registration. So presently this feature of profession is not present in management but very soon it will be included and get statutory backing also. **4. Existence of ethical codes**:For every profession there are set of ethical codes fixed by professional organisations and are binding on all the professionals of that profession. In case of management there is growing emphasis on ethical behaviour of managers. All India Management Association (AIMA) has devised a code of conduct for Indian managers. But legally it is not compulsory for all the managers to get registered with AIMA and abide by the ethical codes.So presently this feature of profession is not present in management but very soon it will be included with statutory backing. **Q6.Discuss the various branches of management.** The operational aspects of business management, called the branches of management, are as follows: **1. Production Management**-Production means creation of utilities. This creation of utilities takes place when raw materials are converted into finished products. Production management, then, is that branch of management 'which by scientific planning and regulation sets into motion that part of enterprise to which has been entrusted the task of actual translation of raw material into finished product.'Plant location and layout, production policy, type of production, plant facilities, material handling, production planning and control, repair and maintenance, research and development, simplification and standardization, quality control and value analysis, etc., are the main problems involved in production management. 2.**Marketing Management**-Marketing is a sum total of physical activities which are involved in the transfer of goods and services and which provide for their physical distribution. Marketing management refers to the planning, organizing, directing and controlling the activities of the persons working in the market division of a business enterprise with the aim of achieving the organization objectives. It can be regarded as a process of identifying and assessing the consumer needs with a view to first converting them into products or services and then involving the same to the final consumer or user so as to satisfy their wants with a stress on profitability that ensures the optimum use of the resources available to the enterprise. Market analysis, marketing policy, brand name, pricing, channels of distribution, sales promotion, sale-mix, after sales service, market research, etc. are the problems of marketing management. **3.Financial Management**:Finance is viewed as one of the most important factors in every enterprise. Financial management is concerned with the managerial activities pertaining to the procurement and utilization of funds or finance for business purposes. The main functions of financial management include: \(i) Estimation of capital requirements; \(ii) Ensuring a fair return to investors; \(iii) Determining the suitable sources of funds; \(iv) Laying down the optimum and suitable capital **4.Personnel Management** Personnel Management is that phase of management which deals with the effective control and use of manpower. Effective management of human resources is one of the most crucial factors associated with the success of an enterprise. Personnel management is concerned with managerial and operative functions. The operating functions of personnel management are: \(i) Procurement of right kind and number of persons; \(ii) Training and development of employees; \(iii) Determination of adequate and equitable compensation of employees; \(iv) Integration of the interests of the personnel with that of the enterprise; and \(v) Providing good working conditions and welfare services to the employees. **5.Office Management** The concept of management when applied to office is called 'office management'. Office management is the technique of planning, coordinating and controlling office activities with a view to achieve common business objectives. One of the functions of management is to organize the office work in such a way that it helps the management in attaining its goals. It works as a service department for other departments.The success of a business depends upon the efficiency of its administration. The efficiency of the administration depends upon the information supplied to it by the office. The volume of paper work in office has increased manifold in these days due to industrial revolution, population explosion, increased interference by government and complexities of taxation and other laws.Harry H. Wylie defines office management as "the manipulation and control of men, methods, machines and material to achieve the best possible results---results of the highest possible quality with the expenditure of least possible effect and expense, in the shortest practicable time, and in a manner acceptable to the top management. **Q7.Write a note on different levels of management.** An enterprise may have different levels of management. Levels of management refer to a line of demarcation between various managerial positions in an enterprise. The levels of management depend upon its size, technical facilities, and the range of production 1. Top management : Top management is the ultimate source of authority and it lays down goals, policies and plans for the enterprise. It devotes more time on planning and coordinating functions. It is accountable to the owners of the business of the overall management. It is also described as the policy making group responsible for the overall direction and success of all company activities. Top management of a company consists of owners/shareholders, Board of Directors, its Chairman, Managing Director, or the Chief Executive, or the General Manager or Executive Committee having key officers. The important functions of top management include : \(a) To establish the objectives or goals of the enterprise. \(b) To make policies and frame plans to attain the objectives laid. \(c) To set up an organizational frame work to conduct the operations as per plans. \(e) To exercise effective control of the operations. \(f) To provide overall leadership to the enterprise. 2. Middle management : The job of middle management is to implement the policies and plans framed by the top management. It serves as an essential link between the top management and the lower level or operative management. They are responsible to the top management for the functioning of their departments. They devote more time on the organization and motivation functions of management. They provide the guidance and the structure for a purposeful enterprise. Middle management of a company consists of heads of functional departments viz. Purchase Manager, Production Manager, Marketing Manager, Financial controller, etc. and Divisional and Sectional Officers working under these Functional Heads. The following are the main functions of middle management : \(a) To interpret the policies chalked out by top management. \(b) To prepare the organizational set up in their own departments for fulfilling the objectives implied in various business policies. \(c) To recruit and select suitable operative and supervisory staff. \(d) To assign activities, duties and responsibilities for timely implementation of the plans. \(e) To compile all the instructions and issue them to supervisor under their control. \(f) To motivate personnel to attain higher productivity and to reward them properly. \(g) To cooperate with the other departments for ensuring a smooth functioning of the entire organization. \(h) To collect reports and information on performance in their departments. \(i) To report to top management \(j) To make suitable recommendations to the top management for the better execution of plans and policies. 3\. Lower or operative management: It is placed at the bottom of the hierarchy of management, and actual operations are the responsibility of this level of management. It consists of foreman, supervisors, sales officers, accounts officers and so on. They are in direct touch with the rank and file or workers. Their authority and responsibility is limited. They pass on the instructions of the middle management to workers. They interpret and divide the plans of the management into short-range operating plans. They are also involved in the process of decisions-making. They have to get the work done through the workers. They allot various jobs to the workers, evaluate their performance and report to the middle level management. They are more concerned with direction and control functions of management. They devote more time in the supervision of the workers. Lower level or operative management of a company consists of Superintendents, Foremen, Supervisors, etc. **Q8.Write short note on :** I. **The Empirical or Experience School** II. **The Management Process School** III. Human Relations School IV. **The Human Behavior School** V. **The Social System School** i. **The Empirical School** The approach is also known as Management by Customs School/Case study approach as it gives much importance to case studies of management. The important contributors to this approach are Earnest Dale and group of researchers from Harward Business School and The Management Associations of different countries. As per this school problems could be solved better by drawing upon the experience of manager. The basic idea of this school is that business conditions will contribute to the development of managerial skills. This school imparts good management education. This school enables the managers to develop analytical and problem solving skill. **Assumptions:** i\. Management is the study of experience and such experience may give some message to the next manager. ii\. As per this theoretical approach should be based on practical experience. iii\. All case studies in management can be useful in training future managers. iv\. The success or failure of management in the process of decision-making can provide a fruitful guidance to the manager in a similar situation that may arise in future. ii. **Management Process School:** This school builds up the idea that management is a process of getting things done through and with other people operating in organised groups. It analyses the management process by describing its functions like planning, organising, directing, coordinating and controlling. The executives perform this process. In this approach importance is given to the activities of the managers, the general principles and rules which they should follow.Henry Fayol is considered to be the 'Founder of Management Process School'. He points out that management is a functional concept which is universal and applicable to any type of enterprise, be it a business enterprise or otherwise. Other persons who worked to develop this approach are J. D. Mooney, A. C. Reiley, Lyndall Urwick, Harold Koontz and O'Donnell, Newman, Luther Gullick, George Terry, E. F. L. Brech, Mcfarland, etc. #### #### **Human Relations School** #### 'Human Relations School' believes in the importance of human resources in the management. This approach focuses attention on the relationship between the management authority and the working personnel.The importance of working personnel in management is immense. If their mentality, aspirations, desires, wants and needs are properly looked into and satisfied by the managers, their activities become effective and meaningful. The main aspect of this approach is to treat the workers as human beings.This school highlights the importance of informal social groups in the organisation, good human relations, the need for managerial motivation, greater recognition, participation, better communication and good leadership.According to this school, an organisation is not merely a formal arrangement of men and functions, more than that, it is a social system, and the human factor is the most important element within it. In the early twentieth century Elton Mayo, professor at the Harvard University, could realise the importance of this thought by experiments and observations in the factory of the Western Electric Company at Hawthorne city in Chicago. These experiments and observations of Prof. Elton Mayo are known as 'Hawthorne Experiment'.These experiments revealed that physical and environmental factors do not materially influence the workers' performance and attitude to work. Mayo realised first the necessity to consider and solve the problems of the workers with human relation approach. iv. **Human Behavioural School** The behavioural approach to management relates to the application of the methods and findings of psychology and sociology to the organisational behaviour. This school emphasises the actions and reactions of the human beings in group activity. Mental reactions like emotions, feelings, aims, instincts, hopes and desires regulate a man's behaviour or conduct.'Human Behavioural School' believes that, unless these mental reactions of the workers are considered, and their problems are either solved or at least attempts are made to fulfill their needs and demands by the managers, effective and meaningful management is not possible.Thus, according to this school, performance of managerial activities in consideration of the conduct or behaviour of working personnel is an effective and decent management. As a result of the experiments, observations and researches of many psychologists and sociologists, and after the Hawthorne Experiment, 'Human Behaviour Management Thought' was evolved out. #### System Approach School #### According to this school, management is a 'system' of co-ordination of some different factors forming the parts of an overall management process, which are inter-related or inter-dependent. If the activities related to production of an enterprise are performed, giving much importance to one of its factors or parts, without considering its relationship and dependence on other factors, the desired result cannot be obtained.For example, men, machine, money and raw materials are the factors of production in management. These elements are not isolated rather they are correlated and inter­dependent on one another. A perfect assemblage of these factors results in production. Efficient workers cannot perform their activities well with bad machines.Good work cannot be expected of inefficient workers working with good machines. So, management is a system to assemble the different correlated and inter-dependent factors that are parts of the overall system. It must be viewed in the context of total environment, and the managers should take into account the various characteristics and changes therein in managing the organization. **Q9.Discuss the Classical Approach of Management.** The classical writers viewed organisation as a machine and human beings as components of that machine. They were of the view that efficiency of the organisation can be increased by making human beings efficient. Their emphasis was on specialisation and co-ordination of activities. Most of the writers gave emphasis on efficiency at the top level and few at lower levels of organisation. That is why this theory has given streams; scientific management and administrative management. The scientific management group was mainly concerned with the tasks to be performed at operative levels. Henry Fayol studied for the first time the principles and functions of management. Some authors like Gullick, Oliver Sheldon, Urwick viewed the problem where identification of activities is necessary for achieving organisation goals. Grouping or departmentation was also considered essential for making the functions effective. Since this theory revolves around structure it is also called 'structural theory of organisation." According to classical writers, the organisation theory is built around four key pillars division of work, scalar and functional processes, structure and span of control. \(i) **Division of Labour:** Division of labour implies that work must be divided to obtain specialisation with a view to improve the performance of workers. The classical theory rests on the assumption that more a particular job is broken into its simplest component parts, the more specialised a worker can become in carrying out his part of the job.The specialisation in workers will make the organisation efficient. Various activities of a job are specified and subdivided into different components so that these may be assigned to different persons. The workers will go on repeating their work under division of labour. The performance of same work will help workers to improve their efficiency and the organisation as a whole is benefitted by this exercise. ii\) **Scalar and Functional Process**: The scalar process refers to the growth of chain of command, delegation of authority, unity of command and obligation to report. It is called scalar process because it provides a scale or grading of duties according to the degree of authority and responsibility. It generates superior- subordinate relationship in the organisation. The functional process deals with the division of organisation into specialised parts or departments and regrouping of the parts into compatible units. \(iii) **Structure**: It is the framework of formal relationships among various tasks, activities and people in the organisation. The basic structural element in the classical theory is position. Each position is assigned a specific task and authority is delegated for its accomplishment. \(iv) **Span of Control**: The span of control means the number of subordinates a manager can control. Classical thinkers specified numbers at different levels which can be effectively supervised by a superior. A manager cannot exercise proper control if the number of subordinates increases beyond a certain figure, on the other hand if the number is less then his capacity and knowledge cannot be fully utilised. **Criticism:** 1\. Classical thinkers concentrated only on line and staff structures. They did not try to find out the reasons if a particular structure is more effective than others. 2.This theory did not lay emphasis on decision-making processes. 3\. Human behaviour was ignored in this theory. Classical thinkers did not realize the complexity of human nature. They take human beings as instrument of organisation performing the assigned task. 4\. The assumption that organisation in a closed system is unrealistic. Organisation is greatly influenced by environment and vice-versa. A modern organisation is an open system which has interaction with the environment. **Q10. Discuss the Neo-Classical Approach of Management.** The classical theory of organisation focussed main attention on physiological and mechanical variables of organisational functioning. The testing of these variables did not show positive results. The Hawthorne Studies conducted by George Elton Mayo and associates discovered that real cause of human behaviour was somewhat more than mere physiological variables. These studies focussed attention on human beings in the organisation. The main propositions of neo-classical theory are given as follows: 1. The organisation in general is a social system composed of numerous interacting parts. 2. Informal organisations exist within the formal organisation. Both are affected by and affect each other. 3. A conflict between organisational and individual goals often exists. There is a need to reconcile the goals of the individual with those of the organisation. 4. Team-work is essential for higher productivity. 5. Man's approach is not always rational. Often, he behaves non- logically in terms of rewards which he seeks from his work. 6. Communication is necessary as it carries information for the functioning of the organisation and the feelings of the people at work. **Improvements over Classical Theory:** **(i) Flat Structure:** The classical theory suggested tall structure whereas neo-classical theory suggested flat structure. In tall structure there is a problem of communication because of differentiation between decision makers and implementers, the levels of management are too many and motivation of people is difficult. In case of flat structure the wide span of control helps in motivation, chain of communication is shorter and it is free from hierarchical control. **(ii) Decentralization:** Neo-classical theory advocates decentralized organization which is close to flat structure because of wider span of control. It allows autonomy and initiative at the lower level. It also develops people to occupy higher positions in future. **(iii) Informal Organisation:** The neo-classical theorists advocated the need for both formal and informal organisations. Formal organisation represents the intentions of top management for the purpose of interactions among the people. Informal organisation is necessary to plug the loop holes of formal organisation and to satisfy the social and psychological needs of people. Managements use informal organisation for overcoming resistance to change on the part of workers and also for fast communication process. Both formal and informal organisations are interdependent upon each other. The main criticism of this theory is as follows: 1\. A thinking that there is always a possibility of finding a solution acceptable to all is not true. There are conflicting interests among various groups. This aspect has not been discussed in the theory. 2\. No particular organisational structure can be suitable for all the organisations. Various organisational formats given by neo- classists are not applicable in all situations. 3\. Neo-classical theory is only a modification of classical organisation theory. It suffers from nearly same drawbacks from which classical theory suffered. It lacks unified approach of organisation. This theory has also been criticised on the ground that it is nothing more than "a trifling body of empirical and descriptive information as it was mainly based on Hawthorne Studies." **Q11. Discuss the Modern Approach of Management.** **Quantitative or Mathematical Approach:** This approach stands for using all scientific tools for providing a quantitative basis for managerial decisions. The abiding belief of this approach is that management problems can be expressed in terms of mathematical symbols and relationships. The basic approach is the construction of a model because it is through this device that the problem is expressed in its basic relationships and in terms of selected objectives. The users of such models are known as operations researchers or management scientists. Linear programming, Critical Path Method, Programme Evaluation Review Technique, Break­even analysis, Games Theory and Queueing Theory have gained popularity for solving managerial problems these days. These techniques help the managers in improving their decisions by analysing the various alternatives in a scientific manner. The application of mathematical techniques is particularly useful in solving the physical problems of management such as inventory and production control. They can never be substitute for knowledge, experience and training necessary for understanding the human behaviour. **Systems Approach** A system is composed of elements or subsystems that are related and dependent on each other. The system approach is based on the generalisation that an organisation is a system and its components are inter-related and inter-dependent. This approach lays emphasis on the strategic parts of the system, the nature of their interdependency, goals set by the system and communication network in the system. Another basic feature of the systems approach is that attention is paid towards the overall effectiveness of the system rather than the effectiveness of subsystems. Under system approach, the overall objectives and performance of the organisation are taken into account and not only the objectives and performance of its different departments or subsystems.The spiritual father of this school of management was Chester I. Barnard. The systems theory lays emphasis on the interdependency and interrelationships between the various parts of a system.It stresses communication and decision processes throughout the organisation. It follows an open system approach. The organisation as an open system has an interaction with the environment. It can adjust to the changes in the environment. **Contingency Approach** The latest approach to management is known as 'contingency' or 'situational' approach. Underlying idea of this approach is that the internal functioning of organisations must be consistent with the demands of technology and external environment and the needs of its members if the organisation is to be effective. This approach suggests that there is no one best way to handle any management problem. The application of management principles and practices should be contingent upon the existing circumstances. Functional, behavioural, quantitative and systems tools of management should be applied situationally. Every manager has to apply the various approaches of management according to the demands of the situation. **Features:** i\. Management is entirely situational so the application and effectiveness of any technique is contingent on the situations. ii\. Policies and procedures should be according to environ­mental conditions. iii\. Managers should understand that there is no one best way to manage. They must not consider management principles and techniques universal. **Q12. Evaluate Taylor's principles of Scientific Management.** **OR** **Q. Discuss about the scientific management theory, briefly discuss contributions of F.W Taylor in SMT.** Scientific management is also known as Taylorism, because Frederic Winslow Taylor, who is also known as the father of scientific manage­ment, was the first to introduce scientific method at the workshop level. As the Chief Engineer in a steel mill, Taylor noticed wastage of time and energy on the part of workers.He found that workers were deliberately slack in performing their work. Time-rate, being the basis of wage- payment, was not conducive to hard work.. The methods used for performing the task were crude and unscientific so that a worker could not produce to the maximum of his capacity. Dr. Taylor defined his Scientific Management as an art of know­ing exactly what the management want men to do and then seeing that they do it in the best and cheapest way. Under this system the method of work is scientifically thought out, the workers scientifically selected and trained to perform the task, and the most efficient speed is scientifically determined. **The mechanism of Scientific Management is dependent on the following techniques:** \(1) Time study, \(2) Motion study, \(3) Functional foremanship, \(4) Differential Piece Rate Wage payment system, \(5) Standardization of tools, equipment and working conditions, \(6) Instruction cards, slide rules, graphs, charts, costing system etc. **Aim of Scientific Management** 1\. Removing wastages and its causes. 2\. Unifying the greater interest of labour and capital. 3\. Uniting higher wages with reduced labour cost. 4\. Lowing cost to increase the purchasing power of the consumer. 5\. Finding out the evil that may lie inherent in the employ­ment of labour and capital. So, to conclude we can say that the aim of Scientific Management is the ultimate attainment of efficiency to crown the organization with spectacular success. To achieve this, techniques are adopted which are not actually aims but help the management to attain the goal with utmost efficiency. ### Principles of Scientific Manage­ment: Scientific Management, according to Person, must be plant­ed and cultivated and fertilized and pruned and shaped like shrub or tree. It is not something to be brought and installed like a boiler machine. **1. Rule of Thumb should be Replaced with Science:** Trial and error approach should not be used for taking decisions; rather scientific way of working should be followed. Work should not be performed on the basis of past experience, trial and error approach or Rule of Thumb. It should be performed in a scientific manner. Under the scientific method, each task is based on time and motion study. The time and motion study divides the work into smaller units, eliminates undesirable motions, arrives at the best way (motion) of doing the work and times that motion to determine the optimum output per worker per day. Business operations include estimating the fair day's work, determining the wage rate for each work operation, standardization of operations etc. which should be precise and exact rather than estimates. Scientific techniques are, thus, used to carry out the work which have replaced the old methods of operations, hit and trial etc. **2. There should be Harmony, not Discord in Group Action:** All members of the organisation (employers and employees) should work as a team. Conflicts should be resolved by mutual discussions and coordination and disagreements should be eliminated. All group actions should be based on mutual understanding so that group, as a whole, contributes to organisational output.Employers and employees should work harmoniously and try to maximise each other's interest. While workers should maximise organisational output, employers should pay more to productive workers. Thus, organisation could benefit on account of higher profits and workers would benefit by getting higher wages. Conflicts between employers and employees should be solved through mutual discussion thereby promoting harmony and eliminating discord. **3. Cooperation, not Individualism:**People should not promote individual interests at the cost of organisational interests. They should cooperate with each other, promote mutual understanding in their thinking, solve each other's problems and work as a team to achieve organisational goals. ** 4. Maximum Output, not Restricted Output:** People should not restrict production. They should increase the output and share the benefits with the management. Workers should not feel that if they maximise organisational output, they would be turned out by management. Instead, they should appreciate the fact that increase in output shall be shared by employers (in the form of profits) and employees (in the form of wages) together. **5. Development of Workers to their Fullest Capacity:**Workers should be developed to their full potential through scientific selection, formal education, training and motivation to give their best to organisational output for the benefit of both; the organisation and the workers. Training should be provided at the work place so that workers learn about new technologies and methods of work to meet the needs of the changing environment. **Q13. What is Scientific Management? How Scientific do you regard Taylor's Scientific Management ?** **OR** **Q Briefly discuss the principles of Scientific Management theory. Also discuss the importance of mental revolution in SMT.** Dr. Taylor defined his Scientific Management as an art of know­ing exactly what the management want men to do and then seeing that they do it in the best and cheapest way. Under this system the method of work is scientifically thought out, the workers scientifically selected and trained to perform the task, and the most efficient speed is scientifically determined. **Features of scientific management are as follows:** **1. Scientific Task-Setting:**Scientific management determines the task for every worker through careful scientific investigation. The standard task is the quality of work which an average worker working under ideal standardised conditions will be able to do in a day. This was called 'a fair day's work.' Thus, Taylor stressed upon standardisation and pre-planning. **2. Planning:**Planning as Taylor says -- "is the heart of scientific management". This planning was concerned with four things; what work has to be done, how it is to be done, where the work shall be done, when it will be done. Taylor advocated the setting up of a planning department. This department will receive detailed instructions and formations relating to the type, shape and quality of production to be produced and the dead line by which the production is to be completed. In planning department four persons were to work -- (i) Programme clerk (ii) Instruction clerk, (iii) Time and cost clerk and (iv) a disciplinarian. **3. Working Study:**It may be defined as the systematic, objective and critical examination of all the factor's governing the operational efficiency of any specific activity. In work study Taylor stressed on method study, time study, fatigue study and scientific rate setting. **(a) Methods Study:** Under this study, the management must make an overall study of the entire production process. Then the management should made efforts to reduce this distance to be travelled by materials during productive cycle. On his basis a "process chart" setting out the various operations may be prepared. With the help of such study, the management can try to ensure that the plant is laid out in the best manner and is equipped with the best tools and machinery. **(b) Motion Study:** It is a study of the movements of-an operator or a machine in performing an operating for the purpose of eliminating useless motions. For conduction motion studies, workers are studied at their jobs and all their movements are noted. Then they are analysed and useless motions are eliminated. Thus a less time consuming and efficient system of operation is developed. **Motion study confers the following advantages:** 1\. It increases output. 3\. Wages are increased; work­ers are benefitted. 4\. Production increases and cost decreases, thus the producer stands to profit more. 5\. It enhances workers' interest and makes them more efficient. **Disadvantages:** 1\. Because of a given pattern of motion, work becomes monotonous. 2\. It appears to workers as irksome, restraining their free move­ments. 3\. Individual differences of workers are not taken into consideration. **(c) Time Study:**The purpose of time study is to determine the proper standard time for performing the operation. In the words of Kimball and Kimball "Time study may be defined primarily as the art of observing and recording the time required to do each detailed element of an industrial operation". Time study when done with motion study helps in determining the best method of doing a job, determining the standard quality of one day's work (standard) task to be done by an average worker) and in rating the work. **4. Scientific Selection and Training of Workers:**Taylor stressed on the systematization of selection according to the nature of requirement of job. Having selected the workers the management will assign tasks to them. Every job must be entrusted to the best available man in the factory. Proper attention should be devoted to the training of workers in the correct methods of work. The scientific management requires the prior training of workers before allotting them certain task in the plant. **5. Standardization:** Taylor suggested the standardisation of not only production but of tools too. Equipment's and of working conditions also. He insisted upon the use and store of standard tools and equipment's in order to get the best production. He advised the management to set an optimum speed for every machine and one best way to do each job.To attain the standard production, he insisted upon the maintenance of standard conditions of ventilation, heating, cooling, humidity, space and safety etc. The use of high quality raw material and good methods of handling materials were also stressed upon. **6. Differential Piece-Rate System of Wages:** Taylor believed that financial incentive is the most appropriate incentive because man works for money. To ensure the efficiency and speed of works he suggested the system of differential piece-rate wages. According to this system two piece-rate should be determined; one for standard production and the other for lower production than the standard limits. It was believed that each worker will try to raise his efficiency in order to get the wages of higher rates. **7. Functional Organisation and Functional Foremanship:** Taylor suggested the scheme of Functional Foremanship. Under the scheme, the two functions of 'planning' and 'doing' are separated in the organisation of the plant. Four foremen will look after the planning work and the other four will supervise the work in the shop. Taylor contemplated eight functional foremanship. **8. The Mental Revolution:**This involves the change of attitude on both sides. Under this Taylor suggested that all the measures outlined in the system of scientific management will be fruitless until and unless there is a complete mental revolution on the part of both the management and the workers as to their outlook and attitude towards work and towards one another. Taylor has written that the methods of scientific investigations and knowledge must be accepted by both the parties without any reservation on their part.Taylor has suggested that "the success of scientific management rests primarily on a fundamental change in the attitude of management and workers both, also their duty to co-operative in producing the largest possible surplus and as to the necessity of substituting exact scientific knowledge for opinions or the role of thumb of individual knowledge". **Q14. Evaluate Taylor's principle of scientific management.What are its advantages and disadvantages.** **Advantages** 1\. **Application and Use of Scientific Methods** -- Scientific management lays emphasis upon the use of the best methods in every sphere of production and management. The best methods have to be found with the help of scientific experimentation and proper investigation. 2\. **Appointment of Specialists** -- It involves appointment of specialists in the field of management. They offer useful guidance, avoid all sorts of wastes and ensure best results. It helps to attain the benefits of division of labour. The work is simplified and carried in the most economical manner. 3\. **Planning and Control** -- The Scientific Management lays emphasis upon proper planning of everything before doing and ensure proper control and checking over industrial operations. 4\. **Proper Guidance** -- It provides proper guidance and instructions to all who are engaged in the process of production. In this way it avoids delay and confusion. 5\. **Emphasis upon Costing** -- its emphasis upon costing offer numerous advantages. It helps in determination of cost of production, control of cost of production, determination of prices of products and improvement in profitability etc. 6\. **More output and Profit** -- It results in production of more goods of better quality with minimum factors of production. Ultimately it leads to greater profits to industrialist. 7\. **Encourages Research** -- its due emphasis upon experimentation, investigation and scientific study and analysis encourages research activities which in the long run help the society in different ways. 8\. **Loads to Co-operation among the Employers and Employees** -- It calls for harmonious relations between employee and employees. It popularized the ideas that prosperity of lot depends upon the prosperity of each. 9**. Increase in Production** -- The Scientific Management ensures proper planning and scientific methods of doing work. This result in the increase to production. 10**. Reduction in Cost of Production** -- Manager by proper planning ensures avoiding all types of wastes and losses planned production helps to reach the production schedule well in time. This leads to reduction in cost of production.. ### Disadvantages The employer's objection is that it is expensive. The studies involved in standardization require large expenditure and in smaller units the expense may become burden. **The worker's objections** 1\. **Destroy Initiative of Workers** -- In scientific management standardization destroys the workers initiative and skills his skill and makes his work routine. The human being becomes a machine and the worker is dictated to by management. 2**. Effects the Health of Workers** -- The speeding of work effects the health of the worker and has even caused unemployment among workers who could not rise up to the standard set-up. 3\. **Breaks on Unity of Workers** -- Scientific management breaks the unity of the workers because payment is based on the individual efficiency. 4\. **Human Aspect in Labour Ignored** -- The time study and motion study reduce the labourers to automations Human aspect in labour is completely over looked. 6\. **Encourage Discrimination between Workers** -- Scientific Management discriminates between workers to worker. Efficient worker get more ways than normal worker. **Q15. Discuss the principles of management propounded by Fayol.** **OR** **Q Elaborate 14 principles of management given by Henry Fayol.** \(1) **Division of work**: Division of work leading to specialization results in increased human efficiency; as through the application of this principle, much more production is possible with the same amount of human efforts. Fayol recommends the application of this principle at both the levels in an organization operational and managerial. **(2) Authority and responsibility:** Authority, in management, is the key to a managerial job. It is the power inherent in a managerial position which enables a manager to command subordinates to work towards the attainment of enterprise objectives.Responsibility, is the reverse of authority; whose essence is an obligation owed by a subordinate to the superior (from whom authority is received) for the proper performance of the job for which authority is granted to the former. Responsibility is a corollary and natural outcome of authority; and cannot exist independently. **(3) Discipline:** Discipline means obedience to the rules of the organisation, on the part of both-managers and subordinates.Discipline is necessary in an organisation; if the organisation is to function properly and prosper and grow. **(4) Unity of command:** According to this principle, a subordinate must get orders and instructions, only from one superior at a time. If there is more than one superior dictating terms to a subordinate; the latter would always be in a state of confusion. **(5) Unity of Direction:** Unity of direction (or similarity of guidance) implies that for each group of activities having the same objective, there must be 'one head and one plan'; or similar activities must be guided in similar ways.For example, if in an industrial enterprise, there are 10,000 workers; then there must be only one overall production plan and only one overall Production In-charge, imparting similar instructions to all workers of course, through their respective foremen (or production superintendents). **(6) Subordination of individual to general interest:** In a group endeavor the individual objectives of people are subordinate to the common group objectives. Whenever, there arises a conflict between individual and group objectives, the management must help in arriving at reconciliation between the two set of objectives. Further, in case of need, the individuals must sacrifice, in favour of larger group objectives. **(7) Remuneration of personnel:** Remuneration of personnel is the price paid or payable to people -- managers and workers -- for their services rendered towards the attainment of the enterprise objectives. Remuneration is of vital importance for a smooth functioning of organizational life, making for good or bad industrial relations; Fayol recommends that the system of remunerating personnel must be such as affords maximum satisfaction to both-employees and employers. **(8) Centralisation** 'Centralisation' refers to a reservation of decision-making authority at top levels of management. 'Decentralisation', on the other hand, means a dispersal of authority from the central (top-level) points to middle, and specially lower levels of management. Management must, therefore, strike out a balance between centralisation and decentralisation; a rightful compromise between the two, which under the circumstances will give the best overall yield, in terms of most efficient and smooth functioning of the enterprise. **(9) Scalar chain:** Scalar chain might be defined as the chain of superiors (i.e. managers) with grades of authority ranging from the highest to the lowest. **The following simple figure illustrates the above concept:** https://www.yourarticlelibrary.com/wp-content/uploads/2015/11/clip\_image0061\_thumb9\_thumb.jpg In the scalar chain, each upper link is a superior; each lower links a subordinate. For example in the above figure, as between B and C, B is a superior and C his subordinate; as between C and D, C is a superior and D his subordinate; and so on for all other links in the scalar chain. The uppermost link of the scalar chain represents the manager of the highest rank (i.e. A, in this figure); the lowest most links represents the manager of the lowest rank (i.e. H, in this figure). **Significance of the scalar chain:** The principle of the scalar chain is significant for reasons for having systematic and orderly communication from the highest managerial link to the lower links and vice-versa; each communication passing through successive links of the scalar chain. In the figure given above, if e.g., B has to communicate a message to F; it will pass from B to C, from C to D, from D to E, and finally from E to F. According to Fayol, the scalar chain must be strictly observed in the usual course of the functioning of the enterprise; except in emergency situations, when its strict observance might be detrimental to the interests of the organisation. **The Concept of 'gang Plank':** As a short-cut to scalar chain, and without violating it, Fayol suggests the concept of 'gang plank' -- in cases the scalar chain is represented by a double ladder. **The following figure illustrates the concept of gang-plank:**  In the above figure, here a gang plank is represented by the dotted line, which links G to N, in a direct manner. A gang plank allows two managers at the same level in the organisation to deal directly with each other without, of course, violating the scalar chain.It allows speedy decisions and saves much of time and inconvenience involved were the scalar chain followed strictly. For example, in the above figure, if instead of dealing with each other through the gang plank G and N follow the scalar chain; the communication from G will fist climb up to A via F, E, D, C, and B and next it will climb down to N from A vial I, J, K, L and M. **(10) Order:** The principle of 'order' implies a systematic arrangement of things and personnel. Accordingly, order is classified by Fayol into two types of orders viz., \(a) Material order (or physical order) - Material order is described as 'a place for everything and everything in its place' \(b) Social order (or human order) - Social order, might be described as a place for everyone and everyone is his/ her place'. **(11) Equity:**The concept of 'equity' implies a sense of 'fairness and justice' to all working in an enterprise. Observance of equity, alone would make personnel loyal and devoted to the organization. **(12) Stability of tenure:** In the interest of the efficiency of organisation and management, it is imperative that personnel must stay in the organisation for as longer a period as possible. This might be called the principle of the stability of tenure. A minimum rate of labour turnover (movement of people into and out of an enterprise) is inevitable, for reasons to retirement, death and other permanent incapacities of personnel and also for reasons of coping with the requirements of growth and expansion of the enterprise. **(13) Initiative:** Initiative refers to the freedom to think out a plan and its execution. It is, in fact, one of the keenest desires of, at least, an intelligent employee, to have initiative in matters relating to his work. Accordingly, the management must provide initiative to employees as a measure to motivate them. **(14) Esprit de corps (or union is strength):** Esprit de corps or union is strength is a simple common proverb, which refers to the strength or power associated with a group, when the members of the group work whole-heartedly in full co­operation with one another. **Criticism** 1. Not Properly Defined -- In the words of Herbert Simon "administrative theory suffers from superficially over simplification and back of relation," Some of the concepts have not been properly defined. There is also back of unanimity about the various items such as management and administration, commanding and directing etc. 2. Lack of Empirical Evidence -- The principles are based on personal experience and limited observations. They are generalizations and lack of empirical evidence. They have not been verified under controlled scientific conditions. Some of them are contradictory. The theory does not provide guidance as to which principle should be given precedence over the other 3. Loss Appropriate in Today's Environment -- Fayol theory was relevant when organizations generated in a stable and predictable environment. It seems less appropriate in the turbulent environment of today. For example, present day managers cannot depend entirely on formal authority and must use persuasion to get work done. 4. Objections on Universality -- The Administrative theory profounder consider their principles to be universal in nature. But many of the principle have failed to deliver the desired results in the changing situation. **Q16. Compare Taylor's scientific management with Fayol's universal management.** **Basis** **Taylor** **Fayol** ----------------------------- --------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------------------------------------------- Human aspect Taylor disregards human elements and there is more stress on improving men, materials and methods Fayol pays due regards on human element. E.g. Principle of initiative, Espirit De' Corps and Equity recognizes a need for human relations Status Father of scientific management Father of management principles Efficiency & administration Stressed on efficiency Stressed on general administration Approach It has micro-approach because it is restricted to factory only It has macro-approach and discuses general principles of management which are applicable in every field of management. Scope of principles These principles are restricted to production activities These are applicable in all kinds of organization regarding their management affairs **Q17. Discuss briefly the main elements of Bureaucratic Management Theory.** Max Weber was a German sociologist who argued bureaucracy was the most efficient and rational model private businesses and public offices could operate in. His bureaucratic theories influenced generations of business leaders and politicians well into the 20th century.  His theory of management, also called the bureaucratic theory, stressed strict rules and a firm distribution of power. He would\'ve scolded today\'s managers, most of whom are open to new ideas and flexible work arrangements, for their leadership style. Many of Weber\'s beliefs discourage creativity and collaboration in the workplace, and oppose flexibility and risk. **\"Precision, speed, unambiguity, knowledge of files, continuity, discretion, unity, strict subordination, reduction of friction and of material, and personal costs -- these are raised to the optimum point in the strictly bureaucratic administration,\" wrote Weber. ** Weber believed that bureaucracy was the most efficient way to set up and manage an organization, and absolutely necessary for larger companies to achieve maximum productivity with many employees and tasks. In an ideal bureaucracy, everyone is treated equally, and work responsibilities are clearly divided by each teams\' areas of expertise. A well-defined hierarchical management system supports this, providing clear lines of communication and division of labor based on the layer of management one worked in. Advancement in the organization is determined solely on qualifications and achievements rather than personal connections. Weber believed the work environment should be professional and impersonal -- \"work relationships\" are strongly discouraged. Overall, Weber\'s ideal bureaucracy favors efficiency, uniformity and a clear distribution of power. ***[Characteristics ]*** 1. **Task specialization (division of labor) -** Task specialization promotes the timely completion of work at the highest level of skill. Tasks, therefore, in Weber\'s ideal organization are divided into categories based on team members\' competencies and areas of expertise. Employees and departments have clearly defined roles and expectations in which they are responsible solely for the work. This is designed to maximize efficiency for the organization. Overstepping one\'s responsibilities, such as presenting new ideas outside of your department\'s scope, is generally disapproved.**\ ** 2. **Hierarchical management structure -** Management should be organized into layers, with each layer being responsible for its team\'s performance. Weber believed that each layer of management should provide supervision to the layers below them while being subject to the control of those above them. Thus, individuals at the top of the management hierarchy have the most authority, while those at the bottom have the least power. This hierarchical structure clearly delineates lines of communication, delegation and the division of responsibilities.** \ ** 3. **Formal selection rules -**Employees should be chosen based on their technical skills and competencies, which are acquired through education, experience or training -- no other factors should be considered. And since workers are paid for their services, and services are divided by job position, an employee\'s salary is entirely dependent on their position. Contract terms are also entirely determined by the organization\'s rules and regulations.**\ ** 4. **Efficient and uniform requirements -** Employees should always know exactly what is expected of them. In the ideal organization, the rules are clearly defined and strictly enforced. This promotes uniformity within the organization and keeps the company running as smoothly and efficiently as possible. If new rules and requirements need to be introduced, higher-level management or directors are responsible for implementing and enforcing them.** \ ** 5. **Impersonal environment.**  - Relationships between employees are to be only professional only. The impersonal environment characterized by bureaucracies is designed to promote decision-making that is based solely on facts and rational thinking. It prevents favoritism as well as involvement from outsiders or political influence, that could interfere with the mission of the organization.** \ ** 6. **Achievement-based advancement -** Promotions within an organization should be based solely on achievement, experience and technical qualifications. Personal favors, relationships or personality traits should not factor into personnel decisions. **Q18. Discuss briefly the advantages and disadvantages of Bureaucratic Management Theory.** Generally speaking, the term bureaucracy has a negative connotation and is often linked to government agencies and large organizations. Nevertheless, the great benefit of a bureaucracy is that large organizations with many hierarchical layers can become structured and work effectively. It is precisely the established rules and procedures that allows for high efficiency and consistent execution of work by all employees. ***[Advantages]*** 1. **Specialization or Expertise**: The work is divided among the employees according to their skill, capabilities and expertise, which results in job specialization in the organization. 2. **Skill-Based **Recruitment: The employees are recruited by matching their skills and experience with that required for the vacant job position to ensure that the right person is placed at the right job. 3. **Predictability**: When there is a systematic hierarchy and defined rules and methods of performing the complicated tasks in the organization, actions in similar situations become somewhat predictable for the management. 4. **Equality**: The management remains unbiased towards the employees and ensures a fair-judgement at the time of any issue or problem in the organization. 5. **Structure**: A systematic organizational structure can be developed through bureaucracy where the rules, regulations, methods and procedures are pre-defined. 6. **Systematic Record Keeping**: This approach focuses on systematically recording all the business transactions and operations in documents to be used by the other employees in future. 7. **Rationality**: The recording of operations brings rationality, i.e., framing the laws, rules, regulations and procedures for future, based on the experience. ***[Disadvantages]*** 1. **Rules** - The rules and formalities are inflexible and rigid which leads to delay in decision making process. 2. **Work Culture** - Bureaucracy is characterized by a large amount of red tape, many desks, certain office culture and slow bureaucratic communication. 3. **Informal Groups** - Informal groups do not receive any importance. In current times, informal groups play a huge role in most business organizations. 4. **Wastage** - It involves a lot of paperwork which leads to a waste of time, money, and also effort. 5. **Decision Making** - While Government organizations can benefit from a bureaucratic structure, business organization need quick decision-making and flexibility in procedures. 6. **Commitment** - While the technical qualifications of the employee are an important aspect of his promotion, a bureaucratic organization does not consider the employee's commitment and dedication. 7. **Loyalty -** It is also unfortunate that employees remain fairly distanced from each other and the organization, making them less loyal.