CHAPTER 2

PRINCIPLES OF MANAGEMENT

Que. Define the term Management Principles.
Ans. Management Principles are statement of fundamental truth, which provide guidelines for managerial decision-making & action. Principles of management are derived on the basis of observation & analysis of events, which managers have to face in actual practice. Apart from direct observation another method of deriving principles is conducting experimental studies.

Que. How management principles are different from that of science.
Ans. Management principles are different from that of science in the sense that Management principles are not as rigid as principles of pure science. They deal with human behaviour and, thus, are to be applied differently in different situations. Human behaviour is never predictable and so also technology, which affects business. Hence all the principles have to keep pace with these changes.

Que. Differentiate between the principles of management and techniques of management.
Ans. Techniques are procedures or methods, which involve a series of steps to be taken to accomplish desired goals. Principles are guidelines to take decisions or actions while practicing techniques.

Que. Differentiate between the principles of management and Values.
Ans. Values are something, which are acceptable or desirable. They have moral connotations. Principles are basic truths or guidelines for behaviour. Values are general rules for behaviour of individuals in society formed through common practice whereas principles of management are formed after research in work situations. However, while practicing principles of management values cannot be neglected, as businesses have to fulfill social and ethical responsibilities towards society.

Que. What is nature of management principles?
Ans. Nature of management principles are explained below:
1) Universal: -The management principles are applicable universally to all types of organizations. For example Govt. organizations, Business organizations, educational organization etc. These principles are universal because these are general guidelines for managers. These principles are very helpful for managers for the best possible results out the available resources.
2) General guidelines: The principles are guidelines to action but do not provide readymade solutions to all managerial problems. This is so because real business situations are very complex and dynamic and are a result of many factors. However, the importance of principles cannot be underestimated because even a small guideline helps to solve a given problem.
3) Formed by practice and experimentation: Principles of management are derived on the basis of observation & analysis of events, which managers have to face in actual practice. Apart from direct observation another method of deriving principles is conducting experimental studies.
4) Flexible: -Management principles are not rigid. They are flexible in nature according to the requirement of a given situation. There may be a situation where these principles are not exactly applicable and may have to be modified.
5) Mainly behavioural: Management principles are directed towards regulating human behaviour so that people can give their best to the organization.. Therefore, principles of management are mainly behavioural in nature. It is not that these principles do not pertain to things and phenomenon at all, it is just a matter of emphasis.
6) Cause & effect relationship: -Cause & effect relationship is established by the management principles. These principles indicate what will be the consequences of certain decisions. For example – According to the principle of division of labour specialization is the result of division of labour.
7) Contingent: The application of principles of management is contingent or dependent upon the prevailing situation at a particular point of time. The application of principles has to be changed according to the requirements.

Que. What is the significance of Management Principles?
Ans.The principles of management are very important for all group activities. Following points highlight the importance of management principles: -
(i) Providing managers with useful insights into reality: The knowledge of the principles of management improves ability and understanding of managerial situations and circumstances. It will also enable managers to learn from past mistakes and conserve time by solving recurring problems quickly. As such management principles increase managerial efficiency.
(ii) Optimum utilisation of resources and effective administration: Managers are capable of making proper use of the available resources of the business. This is possible if activities are planned in advance and organized systematically. Managers can further improve their performance by motivating their employees and monitoring the performance.
(iii) Scientific decisions: Managers have to make decisions to meet changing conditions. They can take stock of various aspects of the organization so that most appropriate decisions are taken for the operation of the business. This could be achieved by following the principle of decentralization of authority.
(iv) Meeting changing enviornment requirements: Principles of management can be applied under different conditions in different ways. There is no set pattern for management. The management principles can be modified depending upon the situations.
(v) Fulfilling social responsibility: Business has its responsibility not only to the shareholders but also to workers, customers, society and the government. Management has to fulfill all these responsibilities. So, if one were to talk of ‘equity’ today, it does not apply to wages alone. Value to the customer, care for the environment, and dealings with business associates would all come under the purview of this principle.
(vi) Management training, education and research: The principles are helpful I identifying the areas of management in which existing and future manager should be trained. The principles of management help the Universities and professional institutes to impart teaching and training in the theory and practice of management.

Que. Define Scientific management.
Ans. Scientific management refers to application of science to management practices. It involves use of scientific methods in decision making for solving management problems rather than depending upon rule of thumb or trial and error method for the purpose. It consists of observations & analysis of each task, fixing standard of work, selecting & training workers, and ensuring that work is done in the most efficient manner. F.W. Taylor is regarded as the father of scientific management.

Que. Explain the Principles of Scientific Management.
Ans. Principles of Scientific Management are as follows-
1) Science, not of Rule of Thumb: - This principle suggests that work given to any employee should be observed & analysed thoroughly. It will help in deciding the best way of performing the work and to determine the standard output. The method so developed should substitute ‘Rule of Thumb’ throughout the organisation. This can result in tremendous saving of human energy as well as wastage of time and materials. The more sophisticated the processes, greater would be the savings.
2)Harmony, not discord: - The workers & managers should carry out their tasks in harmony. They have a complete change of outlook, a mental revolution, in respect of their mutual relations & in relation to the work effort. Mental revolution requires that management should create suitable working conditions & resolve all problems scientifically. Similarly, workers should attend their job with devotion & should not waste resources of the organization.
3) Cooperation, not individualism:-This principle suggests that there should be close cooperation between workers & management without the cooperation of workers; management cannot carry out any work. The interest of workers & management are the same. Workers want more pay & management wants greater production. By producing more, workers can earn more. As such it should be easy to secure the cooperation of the workers.
4) Development of Each and Every Person to His or Her Greatest Efficiency and Prosperity: This principle requires that all workers should be developed and to the fullest extend in their own as well as for companies prosperty for this the selection of workers should be scientific based on job requirement and there should be provision of training for the workers.
5) Maximum, not restricted output:- The aim of management should be to secure maximum prosperity for employers & employees. The dispute may arise mainly on division of surplus. Taylor suggested that the best way to resolve the problem is to increase the size of the surplus so that each side can have a larger share. The interest of workers & management are the same. Workers want more pay & management wants greater production. By producing more, workers can earn more.

Que. Explain different techniques of Scientific management.
Ans. Techniques which facilitated application of the principles of scientific management are known as techniques of scientific management. Different techniques of scientific management are as follows.

Functional Foremanship

This technique suggests that to improve the efficiency of the workers, he should be supervised by several specialist foremen. Taylor identified different types of functional foremen. He believed that a single foreman might not be competent to supervise all functional methods. Specialist should supervise each worker. For example speed boss may supervise speed of the work, repair boss may supervise repair work. Discipline boss may supervise discipline of the work & so on.



Factory Manager nager
Planning Incharge
Production Incharge


Instruction Route Time and Disciplinarian Speed Gang Repair Inspector
Card Clerk Clerk Cost Clerk Boss Boss Boss 



Workman


Standardisation of work

Standardisation refers to the process of setting standards for every business activity. It can be standardisation of process, raw material, time, product, machinery, methods or working conditions. These standards must be followed during production. The objectives of standardisation are:
(i) To reduce a given line or product to fixed types, sizes and characteristics.
(ii) To establish interchange ability of manufactured parts and products.
(iii) To establish standards of excellence and quality in materials.
(iv) To establish standards of performance of men and machines.

Simplification of work

Simplification refers to the elimination of superfluous varieties, sizes and dimensions. Simplification aims at eliminating unnecessary diversity of products. Simplification leads to economy in the use of machines and tools needed; it reduces labour costs through increased specialization of task. It also brings about reduction in the required raw materials and inventories of intermediate and finished goods. It implies fuller utilisation of equipment through uninterrupted runs and fewer machine set-ups. It helps in improving the quality, increasing the turnover at reduced costs and prices.

Method Study

Method study is concerned with the methods of performing a job. There can be a number of methods to perform the same job with different cost requirements. Taylor suggested that management should find out one best way to perform the task. The object of method study is to keep the production costs to the minimum.

Motion Study

Motion study eliminates useless motions & finds out the best method of doing a particular job. By undertaking motion study it is studied that whether some elements of job can be eliminated, combined or their sequence changed to achieve necessary rhythm. It increases the efficiency of the workers by reducing fatigue & wasteful movements on the job. It leads to increase in production & productivity.

Time Study

Time study is an art of observing & recording the time required to do each part of a work. Through time study the (précised) minimum time required for each element of a man’s work is determined. It helps in fixing the standard time required to do a particular job.

Fatigue Study

Fatigue study aims to determine the amount and frequency of rest intervals in completing a task. A person is bound to feel tired if the works without rest interval for a long period of time. In such a case, he will not be able to work with full capacity. If he is allowed rest intervals, he will be able to regain stamina and start working with same capacity. Taylor suggested that frequent rest pauses be provided to the workers for their efficient functioning.




Differential Wage System

In this method of wage payment efficient & inefficient workers are paid at different rates. The efficient workers are paid at a higher rate than inefficient workers. Workers are paid on the basis number of pieces produced. If a worker produces more than standard number of pieces he is given a higher wage per piece on his total output. But if his output is below the number he is given lower rate per piece.

Example:
Standard output = 10 units.
H.W.R = Rs. 10 per unit Workers ‘A’ produces 10 units he gets Rs. 100
L.W.R. = Rs. 9 per unit Workers ‘B’ produces 9 units he gets Rs. 81
Workers ‘B’ get a loss of Rs. 19 which next time will motivate him to produce 10 units.

Mental Revolution
The workers & managers should have a complete change of outlook, a mental revolution, in respect of their mutual relations & in relation to the work effort. Mental revolution requires that management should create suitable working conditions & resolve all problems scientifically. Similarly, workers should attend their job with devotion & should not waste resources of the organization.

Que. Explain Henri Fayoy’s Principles of Management.
Ans. Principles of Henri Fayol are: -
1) Division of Work: -This principle states that all type of work should be divided and allocated to a number of persons. Subdivision makes the work easier and results in greater efficiency. It increases the specialization and also increases the efficiency of the worker as the worker do a small part of work repeatedly.

2) Parity of authority and responsibility: -Authority refers to the right of a superior to give instructions to subordinate, take decision, use resources of organization and regulate the behavior of the employees. Responsibility means obligation to perform functions in a satisfactory manner.
This principle suggests that there should be parity between authority & responsibility. Giving authority without proper responsibility can lead to (arbitrary) misuse of authority. On the other hand, if a person is given some responsibility he must also be given proper authority lack of proper authority will make an individual ineffective.

3) Discipline: -Discipline means obedience proper conduct in relations to other and to comply with the rules & regulations of the organization. Discipline is required for the smooth functioning of the organization. Discipline is required by both the workers and management. To maintain proper discipline there should be good supervisor, clear rules & regulations and penalties in the organization.

4) Unity of Command: -This principle states that subordinates should receive orders and be accountable to one and only one superior. No employee should receive instructions from more than one person. This principle is necessary to avoid confusion and conflict. Moreover, when there is unity of command it is easy to fix responsibility for mistakes.
5) Unity of Direction: -This principle states that the efforts of all the members of the organization should be directed towards common goals. Fayol suggested, “one head and one plan” which means group efforts of a particular plan be led & directed by single person.

Distinguish between Unity of Command and Unity of Direction.
No.                   Basis                                 Unity of Command                       Unity of Direction

1.                   Meaning                             It means that one employee         It means one head and one plan.
                                                               should receive order from
                                                                one superior only.

2.                   Purpose                              It aims at ensuring compliance     It aims at better coordination.
                                                                 of order and instruction.

3.                  Objective                              It defines the accountability of       It defines organisational and                                                                         the employee.                             departmental objectives

6) Subordination of individual to general interest: -Individual should surrender their personal interest before the general interest of the organization. If there is a dispute regarding fulfillment of individual interest or general interest, individuals must sacrifice for the general interest.
7) Remuneration of personnel: -This principle suggests that remuneration of employees should be fair & reasonable. Wages should be determined on the basis of work assigned, cost of living, financial position of the business & average wage rates for similar work in the industry. Fair wages reduces the tension between the managers and the workers. However, wages should be paid to the workers according to the financial position of the organization.
8) Centralisation and Decentralisation: -When top management retains most of the decision-making authority to themselves, it is called centralization. If decision-making authority is delegated at lower levels of management, it is known as decentralization. Fayol suggested that there should be a balance between centralization and decentralization; there may be centralization in small organizations & decentralization in large organizations.
9) Scalar Chain: -Scalar Chain is the chain of superiors ranging from the top management to the lowest management. The chain also determines the line of authority. The managers are linked together in their position from highest to lowest level. The scalar chain serves as a chain of command as well as a chain of communication. It is regarded as a chain of command because orders or instructions issued at higher-level flow through lower managers. Similarly, reports & results achieved are to be sent from lower to higher level. The scalar chain also functions as a chain of communications.
                                               A

                                    B                               E
                              
                            C                                               F
                    
                   D _ ___________________________________ G
Gang Plank

The above figure shows the scalar chain principle. If D has to communicate with G he has to send his message through C, B, A, E & F. To avoid the consequent delay in case of an urgent message, Fayol suggested the concept of “GANG PLANK” shown by the line joining D & G but each must inform his superior.
10) Order: -This principle is related with the arrangement of things and placement of people. Arrangement of things is called material order whereas arrangement of people is called social order. Material order requires that a certain place should be fixed for each object and these objects must be found there. Social order refers to that place of work for each individual should be fixed & that individual should be available at that place.

11) Equity: - The principle of equity suggests that similar treatment should be given to people in similar position. Managers should be fair and impartial while dealing with their subordinates. Equity is very much essential to create and maintain healthy relations between managers and subordinates.
12) Stability of tenure of personnel: -This principle suggest that employees should not be moved from their position frequently. An employee cannot render useful service if he is removed from his position frequently. However, it does not mean that employees should not be promoted or transferred even if it is in the interest of the organization.
13)Initiative: -This principle suggests that employees should be allowed to take initiative in work related matters but it does not mean freedom to do whatever the people like. If initiative is allowed workers are motivated to work better & harder.
14)Espirit-De-Corps: -It refers to team spirit among workers. Managers must take step to develop team spirit among workers. If there is team spirit everyone comes forward to help others. It helps in developing an atmosphere of mutual trust and understanding. It inspires them to work harder. Managers should not use subordinates for their personal work. They should not try to take the credit for the work done by lower levels.

Que. “Taylor’s principles of Scientific Management and Fayol’s principles of management are mutually complenmtary” Do you agree with this view?
Or
Que. Distinguish between Taylor ‘Principle of Scientific Management’ and Fayol ‘Principles of Management’.
Ans. The contribution of Taylor and Fayol are complementary to each other. The comparative evaluation of their contributions is discussed below:-
(i) Concern:- Taylor’s main concerns were tasks. Workers and supervisors; whereas Fayol’s work was concerned more with efficiency of administration or managers.
(ii) Emphasis:- Taylor laid greater emphasis on standardization of work and tools. The principles derived by him were more applicable at shop level. But Fayol laid emphasis on the principles of general management and the functions of managers.
(iii) Expression:- Taylor used the expression scientific management and Fayol expressed his ideas as a general theory of administration.
(iv) Focus:- Taylor tried to improve the productivity of the workers and eliminate all kinds of waste. But Fayol tried to develop principles, to ensure better management.
(v) Starting point:- Taylor wanted to improve the efficiency of employees of the lowest level and then he moved upward while formulating principles of scientific management. Fayol on the other hand began from top level and proceeded downward with emphasis on unity of direction, unity of command and coordination.
The works of Taylor and Fayol were of course essentially complementary since, no organization can function effectively with mutual help and cooperation of managers and employees. They both realized the problems of workers and management at all levels.

BUSINESS STUDIES NOTES CBSE "NATURE AND SIGNIFICANCE OF MANAGEMENT"

CHAPTER 1

NATURE AND SIGNIFICANCE OF MANAGEMENT

Question.    Define the term ‘Management’.

Answer.

Management is used to mean the group of persons who manage the organisation. It is needed every time and in every activity. It is not only confined to business organisations but also in organisations such as government, religious, charitable bodies etc.-

Traditional definition:

According to the traditional view “Management is getting things done through others”. This is incomplete as it treats the employees as mere means to achieve the goals of the organisation. Needs and demands of the employees of the organisation are overlooked.

Modern definition:

According to the modern view “Management is creating the internal environment of an organization where employees working together in groups can perform efficiently towards the achievement of the goals. On this basis Management is goal oriented and involves creating an internal atmosphere so that group goals can be achieved.

Question.    “A successful enterprise has to achieve its goals effectively and efficiently.” Explain.

Answer.

Management has been defined as a process of getting things done with the aim of achieving goals effectively and efficiently

Being effective or doing work effectively basically means finishing the given task. Effectiveness in management is concerned with doing the right task, completing activities and achieving goals. In other words, it is concerned with the end result.

But it is not enough to just complete the tasks. Completing task efficiently is also important. Efficiency means doing the task correctly and with minimum cost. There is a kind of cost-benefit analysis involved and the relationship between inputs and outputs. If by using less resources more benefits are derived then efficiency has increased. Efficiency is also increased when for the same benefit or outputs, fewer resources are used and less costs are incurred. Management is concerned with the efficient use of the available resources, because they reduce costs and ultimately lead to higher profits.

For management, it is important to be both effective and efficient. Effectiveness and efficiency are two sides of the same coin.

Usually high efficiency is associated with high effectiveness which is the aim of all managers. But undue emphasis on high efficiency without being effective is also not desirable.

Question.    Explain the characteristics/features of Management.

Answer.     

Key characteristics of management are given below: -

(i) Management is a goal-oriented process: An organisation has a set of basic goals which are the basic reason for its existence. These should be simple and clearly stated. Different organisations have different goals. Commonly managerial success is measured by the extent to which the objectives are achieved

(ii) Management is all pervasive: Management is relevant for all types of organization whether economic, social or political. A petrol pump needs to be managed as much as a hospital or a school. What managers do in India, the USA, Germany or Japan is the same.

(iii) Management is multidimen-sional: Management is a complex activity that has three main dimensions. These are:

(a) Management of work: All organisations exist for the performance of some work. In a factory, a product is manufactured, in a garment store a customer’s need is satisfied and in a hospital a patient is treated. Management translates this work in terms of goals to be achieved and assigns the means to achieve it.

(b) Management of people: Human resources are an organisation’s greatest asset. Managing people has two dimensions (i) it implies dealing with employees as individuals with diverse needs and behavior; (ii) it also means dealing with individuals as a group of people. The task of management is to make people work towards achieving the organisation’s goals, by making their strengths effective and their weaknesses irrelevant.

(c) Management of operations: Every organisation has some basic product or service to provide in order to survive. This requires a production process which has the flow of input material and the technology for transfor-ming this input into the desired output for consumption. This is interlinked with both the management of work and the management of people.

(iv) Management is a continuous process: The process of management is a series of continuous, composite, but separate functions (planning, organising, directing, staffing and controlling). These functions are simultaneously performed by all managers all the time.

(v) Management is a group activity: An organisation is a collection of diverse individuals with different needs. Every member of the group has a different purpose for joining the organization. Management implies group of persons working in association for the achievement of common objectives. The result of group efforts affects all the person of the group.

(vi) Management is a dynamic function: Management is a dynamic function and has to adapt itself to the changing environment. An organisation interacts with its external environment which consists of various social, economic and political factors. In order to be successful, an organisation must change itself and its goals according to the needs of the environment.

(vii) Management is an intangible force: - Management cannot be seen. One may not see with the naked eye the functioning of management, but its presence can be felt through orderliness, enthusiastic employees, and adequate work output. Quite often, the identity of management is brought in focus by its absence or by the presence of its direct opposite, mismanagement. 

Question.    What are the objectives of the Management?

Answer.

 Management Objectives can be classified into three major categories: Organisational, Social and Individual. A brief description about each objective is given below.

(i) Organisational Objectives: Management should be basically concerned with utilizing human and material resources available to an enterprise for deriving best results. This leads to reduction in costs and maximum prosperity for the organization by generating high profits. Organisational objectives must take care of the interests of all the stakeholders in a fair and just manner. The main organizational objectives are survival, profit and growth.

Survival: The basic objectives of any business is survival. In order to survive, an organisation must earn enough revenues to cover costs.

Profit: Mere survival is not enough for business. Management has to ensure that the organisation makes a profit. Profit provides a vital incentive for the continued successful operation of the enterprise.

Growth: A business needs to add to its prospects in the long run, for this it is important for the business to grow. An organization can grow and expand only if it moves in the predetermined direction. An effective management helps in achieving the objectives but also proves the way for growth and expansion

(ii) Social objectives: - Social objectives deal with the commitment of an organization toward society. Such objectives may be pertaining to health, safety, labour practices, and price regulation. Further, they include activities intended to further social and physical improvement of the community and to contribute to desirable civic activities. It should be noted that most business houses in achieving their primary goals also contribute to their respective communities by creating needed economic wealth, employment and financial support to the community.

(iii) Personal objectives:- Individual objectives are pertinent to the employees of the organization. Each employee joins an organization to satisfy his needs by working in the firm. These objectives might include competitive salary, personal growth and development, peer recognition and societal recognition. In the absence of satisfaction of personal objectives, employees may lose interest in the work and the performance of the organizational objectives may suffer.

Question.    What is the importance of Management in modern business?

Answer.

Management is very much needed for the survival of the business. Without proper management resources will remain resources and shall never become production. Management is important for the following reasons

1. Helps in achieving group goals: Management is a group activity. It co-ordinates the efforts of organizational members so as to achieve the predetermined objectives of the organization.

2. Management increases efficiency: The aim of a manager is to reduce costs and increase productivity through better planning, organising, directing, staffing and controlling the activities of the organisation.

3. Management creates a dynamic organisation: All organisations have to function in an environment which is constantly changing. It is generally seen that individuals in an organisation resist change. Management helps people adapt to these changes so that the organisation is able to maintain its competitive edge.

4. Management helps in achieving personal objectives: A manager motivates and leads his team in such a manner that individual members are able to achieve personal goals while contributing to the overall organisational objective.

5. Management helps in the development of society: An organisation has multiple objectives to serve the purpose of the different groups that constitute it. It helps to provide good quality products and services, creates employment opportunities, adopts new technology for the greater good of the people and leads the path towards growth and development.

Question.    Management is both a science and an art. Explain.

Answer.

Some authors describe management as an art because management relates to practical application knowledge and skill as per the needs of a given situation. On the other hand there are authors who regard management as science because management represents a body of well-tested principles, which can be universally applied. Management as a Science and Management as an art are discussed below

Management as a science: -

Science is a systematized body of knowledge pertaining to a specific field of study and contains general facts that explain a phenomenon. It establishes the cause and effect relationship between two or more factors and have certain principles governing the relationship. These principles are developed through the scientific methods of observation of events and verification through testing. The principles are absolute facts having universal application. As such science is characterized by for main features.

(i) Existence of systematized body of knowledge.

(ii) Use of scientific methods of observation.

(iii) Principle based on experiments.

(iv) Universal validity of principles.

On examination we find that while management has some of these features and it does not have others. For instance management is systematized body knowledge. Also principles of management are arrived on the observation and repeated experimentation in various types of organizations. But the methods of observation followed by management are not cent percent objective because the subjects are human being whose behaviour cannot be predicted. The Management principles are flexible and can be used in different situations with modification. So these principles do not have universal applicability. Thus management may be called an inexact science as is the case with other social sciences.

Management as an art

Art is concerned with the application of knowledge and skills. Desired results are achieved through the application of skill. Thus an art has the following characteristics. :

(1) It signifies practical knowledge.

(2) It signifies personal skills in particular fields of human activity.

(3) It helps in achieving desired/ predetermined results.

(4) It is creative in nature.

Management is also an art since it involves application of knowledge and personal skills to achieve desired results. Every manager has to apply certain knowledge and skills while dealing with the people to achieve the desired results. As an art management calls for a combination of abilities, skills and judgment and a continuous practice of management concepts and principles.

Management: Both science and an art

Management is combination of an organized body of knowledge and skilful application of this knowledge. Effective performance of various management functions necessarily needs an adequate basis of knowledge and a scientific approach. Thus, management is both a science and an art;. It is a science because it uses certain principles. It is an art because it requires continuous practice and personal skills.

From the above discussion it is clear that management is both a science and an art.

Question.    Management is a profession. Explain.

Answer.     

A profession means an occupation for which specialized skills are required. In a profession entry is restricted by examination or education. But these skills are not meant for self-satisfaction but are used for the large interests of the society. A profession has the following characteristics:

1. Well defined body of knowledge.

2. Restricted entry.

3. Professional association.

4. Ethical Code of conduct.

5. Service Motive

Management can be referred as a profession if it fulfills the above mentioned features:-

1. Well defined body of knowledge: Every profession has a specialized body of knowledge relevant to the area of specialization and it can be imported through formal methods of instructions or education. Management fulfills these criteria. The principle and theories of management have been developed for the existing and potential managers.

2. Restricted entry: Entry in a profession is subject to qualifying prescribed exams and acquired practice through training and apprenticeship. However there are no restrictions on a person to become a manager anyone can become a manager irrespective of ducation. Therefore this criterion is not fulfilled by the management.

3. Professional association: For every profession a representative association is there to lay down the code of conduct and membership rules. Management also has association such as All India Management Association, National Institution of Personnel Management etc. However the membership to these associations is not essential for the managers therefore this criterion is partly fulfilled by the management.

4. Ethical Code of conduct: Members of a profession have to abide by code of conduct which contains rules and regulations relating to the profession any member violating the code can be punished and the membership can be cancelled. The All India Management Association has also framed code of conduct for the managers but there is no legal backing for this code. Therefore management does not fulfill this criterion.

5. Service motive: The basic motive of a profession is to serve their client’s interests by rendering dedicated and committed service. The basic purpose of management is to help the organisation achieve its stated goal. This may be profit maximisation for a business enterprise. However, profit maximisation is not the sole objective of the management.. Therefore, if an organisation has a good management team that is efficient and effective it automatically serves society by providing good quality products at reasonable prices.

Conclusion: On the basis of above discussion we find that management fulfills some of the features of profession. Therefore it can be regarded as profession. But not full fledged professions like legal or medical profession. But the recent trends show that it is moving in that direction.

Question.    Explain different levels of management?

Answer.

A series of managerial position from top to bottom is called levels of management. Level of management determines the amount of authority and status enjoyed by any manager. The levels of management can be classified into three parts.

(i) Top level Management

(ii) Middle level management

(iii) Supervisory level or operating management

TOP MANAGEMENT

Top management consists of managers at the highest level in the management chain of command. This includes Board of Directors, Chief executive and the departmental heads.

Functions of top level Management / Activities Performed by top level Management

(i) Establishing overall long term goals and ways of attaining them.

(ii) Maintaining liaison with the outside world

(iii) Laying down overall policies

(iv) Providing direction and leadership to the organization as a whole.

MIDDLE MANAGEMENT

Middle level management consist of departmental managers, branch managers like purchase managers, production managers, personnel manager, finance manager marketing manager etc.

Function of the middle level management / Activities performed by the middle level management.

(i) To link the top and supervisory levels of management.

(ii) To transmit orders decisions and instructions down ward.

(iii) To carry the problems & suggestions upward.

(iv) To inspire lower level managers towards better performance.

(v) To co-ordinate various units and divisions

SUPERVISORY OR OPERATIONAL MANAGEMENT

Supervisory / operative / lower management consist of first line supervisors. They generally have such designations as superintendent, section officer, foreman etc. Following are the important functions of lower management.

(i) Planning day today activities.

(ii) Arranging machinery & tools etc.

(iii) Arraigning jobs and tasks to subordinate

(iv) Supervision of the work of labour.

(v) Reporting the problems faced and suggestions made by workers to the middle level management.

Question.    What are different functions of management?

Answer.

Following are the functions of Management

(1) Planning: - It is deciding in advance what to do, how to do when to do and who is to do. It bridges the gap between where we are to and where we want to go. It makes it possible for things to occur which would otherwise not happen. Planning is needed for all functions and at all level of management though its extent varies with the delegated authority or position.

(2) Organising: - It refers to the process of bringing together physical financial & human resources & establishing productive relations among them for the achievement of predetermined goals. It is concerned with building a structure of various inter-related parts. The main aim of Organising is to enable the people to relate to each other to work together for a common purpose.

(3) Staffing: - The staffing may be defined as the managerial function of hiring and developing the required personnel to fill in various positions in the organization. This function involves determination of the size and categories of required personnel. It is also concerned with employing the right people and developing their skills thorough training. The staffing function focuses on improving the competence and performance of the employees in the organization.

(4) Directing: - It is the function of managements concerned with instructing, guiding, supervising, motivating & leading the subordinates to contribute to the best of their of their abilities for the achievement of organizational objectives. It is a continuous function of the management.

(5) Controlling: -Controlling is the process of verifying actual performance is in conformity with planned performance & taking corrective action where necessary. It provides that performance of work is in accordance with the organizational plans policies & programmes. It enables managers to detect deviations in performance if any rectify them and to prevent their repetition in future.

Question.    Define coordination.

Answer.

Co-ordination as a function of management refers to the task of integrating the activities of separate units of on organization to accomplish the goals efficiently. The purpose of coordination is to ensure that the goals of units and subunits are pursued in harmony with each other keeping in view the goals of the organization as a whole.

 Question.  Co- ordination is the essence of management.

Answer. The work given to different departments units and individual must be coordinated by all managers at various levels as a regular function. Without proper co-ordination there is likely to be duplications or over lapping and even chaos in the organization co-ordination in required in performing every function of management as follows.

(a) In planning co-ordination is required

(i) Between objectives and available resources and

(ii) Among different functional managers.

(b) In organizing co-ordination is required.

(i) Between resources of an organization and activities to be performed.

(ii) Among authority responsibility and accountability.

(c) In staffing co-ordination is required

(i) Between skills of workers and jobs assigned to them.

(ii) Between training and technology of production.

(d) In directing co-ordination is required

(i) Among orders, instructions, guidelines, suggestions etc.

(ii) Between superior and subordinates

(iii) Between efficiency and motivation

(e) In controlling co-ordination is required

(i) Between standards fixed and actual performances

(ii)Between correction of deviation and achievement of objectives.

It is clear from the above discussion that Co-ordination is regarded as the essence of management rather than separate function of management.

Question. Explain the nature of coordination.

Answer. Coordination is the process of achieving unity of action among independent activities. This would be better achieved if the nature of coordination is understood clearly as discussed below: -

Nature of Coordination

The definitions given above highlight the following features of coordination:

(i) Coordination integrates group efforts: Coordination integrates unrelated or diverse interests into purposeful work activity. It gives a common objective to group effort to ensure that performance is done as per planning.

(ii) Coordination ensures unity of action: The purpose of coordination is to secure unity of action in the achievement of a common purpose. It acts as the binding force between departments and ensures that all action is aimed at achieving the goals of the organization.

(iii) Coordination is a continuous process: It is not a one time process but a continuous process. It starts with the establishment of business and runs up to its closure. Maintaining coordination among various activities of business is the essential task of managers. This should happen continuously

(iv) Coordination is an all pervasive function: Coordination is required at all levels of management due to the interdependent nature of activities of various departments. It integrates the efforts of different departments and different levels.

(v) Coordination is the responsibility of all managers: Coordination is the function of every manager in the organisation. Top level managers need to coordinate with their subordinates to ensure that the overall policies for the organisation are duly carried out. Middle level management coordinates with both the top level and first line managers. Operational level management

(vi) Coordination is a deliberate function: A manager has to coordinate the efforts of different people in a deliberate manner. Even where members of a department willingly cooperate and work, coordination gives a direction to that willing spirit. Cooperation in the absence of coordination may lead to wasted effort and coordination without cooperation may lead to dissatisfaction among employees.