FUNCTIONS OF MANAGEMENT STYLES OF LEADERSHIP TYPES OF MANAGER LEVELS OF MANAGEMENT

1. Planning involves selection of goals 1. An Autocratic style means that the 1. Functional Managers is manager 1. Top Level Management comprises
and deciding the best method to manager makes decisions unilaterally who supervises specialized activities board of directors, chief executives
achieve them. Planning process looks and without much regards for such accounting, marketing etc. or managing directors. CEO, President,
into the future and decides the future subordinates. Subordinates may 2. General Managers supervises the Vice President, Chairman fall into the
course of action. become overly dependent upon the work of several different groups that category of Top Level Management.
2. Organizing is the process of leader perform a variety of functions. The top management is the ultimate
arranging and allocating work, 2. In Paternalistic Style, decisions 3. An Administrator is typically a authority.
authority and resources. will be taken into account the best manager who works in government 2. Middle Level Management is a link
3. Staffing is concerned with proper interests of the employees or nonprofit organization. between Top Level and First Level
recruitment and training of the 3. In a Democratic style, the manager 4. An Entrepreneur is a person who Management. Middle level
employees. Employee is the key factor allows the employees to take part in founds and operates an innovative incorporates branch managers and
in any organization. decision-making business. departmental managers.
4. Leading in organization means 4. In a Laissez-faire style, the leader’s 5. Small-business owners typically 3. First Level Management is also
movement towards objectives. role is peripheral and staff manages invest considerable emotional and known as supervisory / operative level
Leading involves directing, influencing their own areas of business. physical energy into their firms. of management. It consists of
and motivating employees to perform 5. Managing by Walking Around 6. A Team Leader coordinates the supervisor, foreman, section officer,
essential task. (MBWA) is a classical technique in work of a small group of people, while superintendent, workers and jobbers.
5. Controlling is based on comparison which managers listens carefully to acting as facilitator or catalyst. Lower level managers are
of actual performance with planned employees’ suggestion, managers mediators between workers and
objectives. gets real-time information higher level management.

MINTZBERG’S MANAGER ROLES PRINCIPLES OF MANAGEMENT MANAGEMENT SKILLS GUIDELINES FOR MANAGER
(1) DIVISION OF WORK 1. Technical skills reflect the
Interpersonal Roles (2) AUTHORITY proficiency and understanding of a 1. "Create constancy of purpose
1) Figurehead (3) DISCIPLINE specialized job. Technical skills are towards improvement
2) Leader (4) UNITY OF COMMAND associated with First or Supervisory 2. "Adopt the new philosophy”
3) Liasion (5) UNITY OF DIRECTION Level Management. 3. "Cease dependence on inspection".
(6) SUBORDINATION OF INDIVIDUAL 2. Human Skills is also called as 4. "Move towards a single supplier for
Informational Roles INTERESTS TO THE GENERAL interpersonal skills. A manager with any one item
4) Monitor INTERESTS effective human skills can 5."Improve constantly and forever".
5) Disseminator (7) REMUNERATION communicate properly and motivate 6."Institute training on the job
6) Spokesman (8) CENTRALIZATION them to perform well. 7."Institute leadership.”
(9) SCALAR CHAIN 3. Conceptual Skills refers to the 8."Drive out fear”
Decisional Roles (10) ORDER ability of man to think and to 9."Break down barriers between
7) Entrepreneur (11) EQUITY conceptualize abstract situations. departments".
8) Disturbance Handler (12) STABILITY OF TENURE OF 4. Time Skills is an art of scheduling, 10."Eliminate slogans
9) Resource Allocator PERSONNEL budgeting, arranging in organization 11."Eliminate management by
10) Negotiator (13) INITIATIVE for effective result. objectives"
(14) ESPIRIT DE CORPS 12."Remove barriers to pride of
MANAGEMENT AS “ART ” MANAGEMENT AS “SCIENCE” MANAGEMENT AS “PROCESS” workmanship
- Art is practical implementation of Science refers to a systematic body George R. Terry is of the opinion that 13."Institute education and self-
personal skills and knowledge to of knowledge acquired through management is a distinct process improvement"
achieve outcome. Just like an Artist, a observation, experimentation and consisting of planning, organizing, 14."The transformation is everyone's
manager applies his knowledge and intelligent speculation. Management directing and controlling, which are job".
skills to coordinate the efforts of the deals with the systematic knowledge performed to determine and MANAGEMENT AS PROFESSION
people. of acquiring the skill of getting things accomplish objectives by the use of It is backed by a systematic body of
- Art is a personalized process and done through others. Management people and resources. Management is knowledge. A number of management
every artist or a human being has his is an accepted science as a way of a process in the sense that it is principles have been developed which
own style. Management is also a solving problems and taking concerned with planning, executing need proper learning and education.
personalized process. decisions. A scientific attitude is and controlling the activities of an Management is more creative rather
- Art is essentially creative and the absolutely essential for a manager in enterprise. It is basically concerned than adaptive. It also deals with
success of an artist is measured by problem solving and decision with the interrelationship of people at ethical and social responsibilities
the result he achieves. Management making. work, mainly with directing the towards the society. Professional
is creative like any other art. performance rather than with attributes are very much present in
quantum of work done. the concept of management.
CLOSE SYSTEM VIEW OF ORG. OPEN SYSTEM VIEW OF ORG. FORMAL AND INFORMAL ORG. CHARACTERISTICS OF MANAGEMENT
Closed systems are sets of interacting A set of elements that interact with A Formal Organization is a group of (1) Management is Goal Oriented :
elements operating without any each other and the environment, and people working together (2) Management is Continuous
exchange with the environment in whose structure originates as a result cooperatively under authority. This (3) Management is Time Oriented
which they exist. of interaction Organization depends on authority, (4) Management is a Group Activity :
responsibility and accountability (5) Management integrates Human,
The two basic characteristics of a The open system concept is based on Physical and Financial Resources
closed system are : the assumption that no system is An informal organization is “a
(1) It is perfectly deterministic and totally deterministic or predictable network of personal and social Management is a specialty in dealing
predictable because of the uncertainties in the relation not established or required with matters of time and human
(2) There is no exchange between the external environment. by the formal organization. relationship.
system and the external environment.

Very Good ....Now Turn the Page and Read Main Pamphlet to get Good Marks ..... (P.T.O)

Prof. Chintan A. Mahida (DJMIT) 1 www.mahidachintan.com

www.chintanmahida.co.cc
 Unit – 1 : Introduction to Management and Organizations

Que : Define ‘Management.’ State the functions of management. Explain

Management is one of the most imperative and The task of organizing is also known as design of an
interesting disciplines of business. Management is a wide organizational structure. Organizing is the process of
term and has different meaning at different time and establishing the orderly use of assigning and coordinating
under different situation. Management is an art of tasks. Some important steps of organizing are as below :
getting work done by different people working in (a) Review Plans and Objectives
different departments. Management can be defined as (b) Determine the work activities necessary to
the process of designing and maintaining an environment accomplish objectives
in which individuals worked together as a group to (c) Classify and group the necessary work activities
accomplice any objectives. Management is the proper into manageable units
utilization of resources and people. (d) Assign activities and delegate authority
(e) Design a hierarchy of relationship
D.J.Clough says, “Management is the art and science of
decision making and leadership.” George R. Terry
defines, “Management is a process consisting of (3) Staffing : Employee is the key factor in any
planning, organizing, actuating and controlling.” organization. No business enterprise can exist without
Management can also be explained in the word itself employees. Staffing is concerned with the proper
Manage Men Tactfully. recruitment and training of the employees. Manager has
to work with the human resources department to execute
There are basic five functions of Management : this function. Staffing or Human Resource Management
(HRM) is the management function devoted for acquiring,
(1) Planning : Planning is the management function that training, apprising and compensating employees.
involves setting of goals and deciding the best method to Attracting, developing, rewarding and retaining the people
achieve them. The first step in planning is the selection of needed to reach organizational goals are the activities that
goals for the organization. Goals are then established for build up the staffing function.
the subunits of the organizations - its divisions,
departments and so on. Programs are established to (4) Leading : Leading is also known as “directing” and
achieve these goals. The plan must be flexible so that it “motivating”. Leading in organization means movement
can be modified due to change in working environment towards objectives. Leading involves directing, influencing
and new information. Planning is a rational and and motivating employees to perform essential task. A
intellectual process prior to the actual operations. The manager has to be a leader as he directs the whole team
Planning process looks into the future and decides the towards the completion of the organization goal. Planning
future course of action. Planning is the function that and organizing deal with the more abstract aspects of the
determines in advances what should be done. It consists management process, the activity of leading is very
of selecting the enterprise objectives, policies, programs, concrete; it involves working directly with people.
procedures and other means of achieving the objectives.
Plans made by top level management may cover periods (5) Controlling : Controlling is based on comparison of
as long as five or ten years. Planning at the lower level actual post-operative data with planned data. Controlling is
covers much shorter periods. aimed at regulating organizational activities so that actual
performance meets the expected or predetermined
(2) Organizing : When two or more persons work objectives and standards of company. Relationships and
together towards a common goals, authority and time are central to controlling activities. For best
responsibility should be given to them. This is the task of controlling, compare the result with standards and take
organizing. Organizing is the process of arranging and the necessary corrective action. Planning and controlling
allocating work, authority and resources among an are so correlated that many a times, they are performed
organization’s members so they can achieve the concurrently. Harold Kontz said, “Planning and controlling
organization goals. Different goals require different are non-separable twins.” Thus Controlling is carried out
structure. A list of activities is to be prepared and only after the operations are over. Suppose planned target
activities should be distributed among different production is 100 units per day, the actual day ends
department. Organizing is also concerned with building, production is compared with the pre-planned production
developing and maintaining of working relationships. of 100 units. The day end actual production could be 95
units indicating inefficiency in the form of short fall of 5
units.

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 Unit – 1 : Introduction to Management and Organizations

Que : Explain Mintzberg’s 10 managerial roles. (Roles of Manager)

Henry Mintzberg in his book, “The Nature of Manageiral Work” published in 1973, highlighted the roles of managers in
an organization. He conducted a study of five executives , the way they spend their time in the organization. He
conducted a study of five executives, the way they spend their time in the organization for serving the organization. He
classified three major managerial roles each with sub-classification of ten roles. He classified such roles as under :

Performs ceremonial and symbolic duties such as greeting visitors , signing

Figurehead legal documents. ( An executive is considered as a first person of the section,
Interpersonal Roles division, branch or a company. He performs all above duties)

Direct and motivate subordinate, training counseling and communicating with

Leader subordinates. ( As a leader, he leads his division through motivating and
encouraging the employees under his span of control)

Maintain information links both inside and outside organization; use mail ,
Liasion phone calls , meetings. (As a Laision, he collects the information of his section
and co-ordinates it with other sections of the company.

Monitor Seek and receive information, scan periodicals and reports ,maintain personal
contacts. ( He collects and monitors the information is formal and informal
through personal contacts)
Informational Roles
Disseminator Forward information to other organization members; send memos and reports,
make phone calls. ( He is authorized to disseminate the information)

Spokesman Transmit information to outsiders through speeches, reports and memos.

(A Manager is an authorized person to speak to either insiders or outsiders as
far as his official jurisdiction is concerned.)

Entrepreneur Initiate improvement projects, identify new ideas. ( He has creative ideas)

Decisional Roles Disturbance Take corrective action during disputes or crises; resolve conflicts among
Handler subordinates. ( As a head, he can handle disputes within his section or
between the sections)

Resource Decide who gets resources , scheduling, budgeting , setting priorities

Allocator (The corporate team allocates the resources among various divisions of the
company)

Negotiator Represent department during negotiation of union contract, sales purchases,

budgets ; represent departmental interests. (The Manager on behalf of the
company negotiates various terms binding as well as benefiting the company.)

Trick : FLL MDS E D R N ds

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 Unit – 1 : Introduction to Management and Organizations

Que : Explain types of Managers.

The functions performed by mangers can also be (7) Team Leaders : A major development in types of
understood by describing different types of management managerial positions during the last 20 years is the
jobs. emergence of the team leader. A manager in such a
position coordinates the work of a small group of people,
(1) Functional Managers : Functional managers supervise while acting as facilitator or catalyst. Team leaders are
the work of employees engaged in specialized found at several organizational levels, and are sometimes
activities such as accounting, engineering, information referred to as project managers, program managers,
systems, food preparation, marketing, and sales. A process managers, and task force leader. ( Note : The
functional manager is a manager of specialists and of their real answer ends here )
support team, such as office assistants.

(2) General Managers : General managers are responsible Extra Points for this answer. You can add
for the work of several different groups that perform a this point if you want to add.
variety of functions. The job title “Plant General Manager”
offers insight into the meaning of general management. When we are talking about types of managers, it is
Reporting to the plant general manager are various necessary to highlight “Types of Leadership” and “Levels
departments engaged in both specialized and of Management.”
generalized work such as manufacturing, engineering, labor
relations, quality control, safety, and information systems. (1) Autocratic : An Autocratic style means that the
Company presidents are general managers. Branch manager makes decisions unilaterally and without much
Managers also are general manager if employees from regards for subordinates.
different disciplines report to them.
(2) Paternalistic : It is just like autocratic and is also
(3) Administrator : An administrator is typically a manager essentially dictatorial ; however decisions take into
who works in a public (government) or nonprofit account the best interests of the employees as well as
organization, including educational institutions, rather than the business.
in a business firm. Managers in all types of
educational institutions are referred to as administrators. (3) Democratic : In a Democratic style, the manager
An employee is not an administrator in the managerial allows the employees to take part in decision-making :
sense unless he or she supervises others. therefore everything is agreed by the majority.

(4) Entrepreneurs : An entrepreneur is a person who (4) Laissez-Faire : In Laissez-faire , the leader’s role is
founds and operates an innovative business. Michael H. peripheral and staff manage their own areas of business.
Morris defines entrepreneurship along three dimensions : The communication is horizontal. This style can be
innovativeness, risk taking and proactiveness. After the resulted in poor management.
entrepreneur develops the business into something bigger
than he or she can handle alone or with the help of only a (5) MBWA : Managing by Walking Around (MBWA) is a
few people, that person becomes a general manager. classical technique by good managers who are
Michael Dell started Dell Computers from his dormitory proactive listeners. Listening carefully to employee’s
room and He becomes wealthiest man and an suggestions, managers gets real-time information
entrepreneur in short time. processes and policies that is often left out in formal
communication. The manager must maintain his role as
coach or counselor not director.
(5) Small Business Owner : Small-business owners
typically invest considerable emotional and physical There are three levels of management
energy into their firms. Note that entrepreneurs are (or (1) Top Level Management consists of president,
start as) small-business owners, but that the reverse is not chairman, vice chairman etc.
necessarily true. You need an innovative idea to fit the (2) Middle Level Management consists of head of all
strict definition of an entrepreneur. Simply running a departments.
franchise that sells sub sandwiches does not make a person (3) First Level / Lower Level Management consists of
an entrepreneur. workers and supervisors.

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 Unit – 1 : Introduction to Management and Organizations

Que : Explain the different styles/types/methods of leadership.

Types of managers are distinguished by the way they (3) Democratic Leadership : In a Democratic style, the
manage the activities within company. Management manager allows the employees to take part in decision-
styles are the characteristics ways of making decisions. making : therefore everything is agreed by the majority.
Different management styles can be employed dependent Communication gets both directions: Upward and
on the culture of the business, the nature of the task, the Downward. From business’s point of view, job
nature of the workforce and the personality and skills of satisfaction and quality of work will improve.
the leaders. Robert Tannenbaum and Warren H. Schmidt
argued that the style of leadership is dependent upon the Advantages : It satisfies the ego of the employees and
prevailing circumstances. thus boosts up the moral. It develops relations between
superior and subordinates. It develops creativity in the
(1) Autocratic Leadership : Autocratic leadership refers to subordinates. It eliminates the conflicts between the
the centralized authority in a top person usually the head superior and subordinates.
of the organization. An Autocratic style means that the
manager makes decisions unilaterally and without much Disadvantages : This type assumes that subordinates are
regards for subordinates. His decision will reflect the capable of decision making but sometimes incapable
opinions and personality of the manager. Subordinates subordinates pretend to participate. It delay the decision
may become overly dependent upon the leader and making process. It is difficult to maintain the secrecy of
more supervision may be needed. In this style, the leader the decisions.
or the head of the organization retains all authorities in his
hand.
(4) Laissez-Faire Leadership : In a Laissez-faire
There are two types of autocratic leaders : leadership style, the leader’s role is peripheral and staff
(a) The Directive Autocratic makes decisions manage their own areas of business. The communication
unilaterally and closely supervises subordinates. is horizontal. This style can be resulted in poor
(b) The Permissive style makes decisions unilaterally management. Here, the leader detaches him from the
but gives subordinates latitude in carrying out their duties of management and because of this, coordination
work. gets disturbed. This style can create highly professional
and creative groups
Advantages : Quick decision-making is possible. Secrecy can
be maintained. It ensured effective coordination and Advantages : The subordinates use their creativity and
discipline. innovative way of handling a situation. It boosts up the
Disadvantages : It kills creativity of subordinates. In case of morale of the subordinates.
weak leader flattery develops. It demoralizes talented
people. Sometimes the decisions could immature and Disadvantages : This style of leadership assumes that the
whimsical which may affect the organization. subordinates are competent to decide in the best interest
of the company which may not always be true. As there
is no linear relationship in the organization, it breaks
(2) Paternalistic Leadership : It is just like autocratic and is effective communication.
also essentially dictatorial ; however decisions take into
account the best interests of the employees as well as
the business. (5) MBWA Leadership : Managing by Walking Around
(MBWA) is a classical technique by good managers who
Advantages : The leader explains most decisions to the are proactive listeners. Listening carefully to employees’
employees and ensures that their social and leisure needs suggestion, managers gets real-time information
are always taken care of. Communication is again processes and policies that is often left out in formal
generally downward but feedback to the management is communication channel .The manager must maintain his
encouraged to maintain morale. role as coach or counselor not director. By leaving
decision –making responsibilities with the employees,
managers can be assured of the fastest possible response
Disadvantages : Employees once again become dependent time. By walking around, management gets an idea of
on the leader. the level of morale in the organization and can offer help
if there is trouble.

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 Unit – 1 : Introduction to Management and Organizations

Que – What, according to you, are the skills a Que – Explain the principles of management
modern manager will require to run an as suggested by Henry Fayol.
organization. (Explain management skills)
(Trick : DAD UUS RCSO ESIS)

Three different types of skills are identified : (1) DIVISION OF WORK : Work should be divided among individuals and
(1) Technical Skills groups to ensure that effort and attention are focused on special
portions of the task.
(2) Human Skills
(3) Conceptual Skills (2) AUTHORITY : The concepts of Authority and responsibility are
(4) Time Skills closely related. Authority was defined by Fayol as the right to give
orders and the power to exact obedience. Responsibility involves being
accountable, and is therefore naturally associated with authority.
(1) Technical Skills : Technical Skills refers to the ability of
man to carry out any activity in organization. Technical (3) DISCIPLINE : A successful organization requires the common effort
skills reflect the proficiency and understanding of a of workers. Penalties should be applied judiciously to encourage this
specialized job. Technical skills are associated with First common effort.
or Supervisory Level Management. Managers often
(4) UNITY OF COMMAND : Workers should receive orders from only
develop their technical skills through education or one manager.
training. The technical skill development is continuous
process. (5) UNITY OF DIRECTION : The entire organization should be moving
towards a common objective in a common direction.
(2) Human Skills : Human Skills is also called as (6) SUBORDINATION OF INDIVIDUAL INTERESTS TO THE GENERAL
interpersonal skills. Human skills is work with others as a INTERESTS : The interests of one person should not take priority over
team member and as a leader. A manager with the interests of the organization as a whole.
effective human skills can communicate properly and
motivate them to perform well. Every executive deals (7) REMUNERATION : Many variables, such as cost of living, supply of
qualified personnel, general business conditions, and success of the
with human skills. Every manager should follow the business, should be considered in determining a worker’s rate of pay.
employee centered rather than production centered
management. Every manager should recognize and (8) CENTRALIZATION : Fayol defined centralization as lowering the
appreciate the feelings and expectations of the people importance of the subordinate role. Decentralization is increasing the
importance. The degree to which centralization or decentralization
and should strive to meet them in possible manner. should be adopted depends on the specific organization in which the
manager is working.
(3) Conceptual Skills : Conceptual Skills refers to the ability
of man to think and to conceptualize abstract (9) SCALAR CHAIN : Managers in hierarchies are part of a chain like
situations. Conceptual skills is very useful for finding authority scale. Each manager, from the first line supervisor to the
president, possess certain amounts of authority. The President
problem. In organization, every problem must be solved possesses the most authority; the first line supervisor the least. Lower
with conceptual skills. Conceptual Skills is associated with level managers should always keep upper level managers informed of
top level management. Conceptual skills also include the their work activities.
ability to analyze a situation, determine the root-cause of
(10) ORDER : For the sake of efficiency and coordination, all materials
any problem and devise an appropriate plan. A manager and people related to a specific kind of work should be treated as
is supposed to be a strategist rather than a person with a equally as possible.
short sighted and selfish consideration.
(11) EQUITY : All employees should be treated as equally as possible.
(4) Time Skills : Time Skills is an art of scheduling,
(12) STABILITY OF TENURE OF PERSONNEL : Retaining productive
budgeting, arranging in organization for effective result. employees should always be a high priority of management.
Time management has become crucial in recent years. Recruitment and Selection Costs, as well as increased product-reject
Time management is perhaps most essential for the peson rates are usually associated with hiring new workers.
who owns his or her own business or who runs a business
(13) INITIATIVE : Management should take steps to encourage worker
out of the home. An important aspects of time initiative, which is defined as new or additional work activity
management is planning ahead. undertaken through self direction.

In short, First Level Managers require more technical skills (14) ESPIRIT DE CORPS : Management should encourage harmony and
and human skills . However conceptual skills are not very general good feelings among employees.
essential for the managers at the supervisory level.

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 Unit – 1 : Introduction to Management and Organizations

Que : Explain Levels of Management.

In many small business enterprises, the owner is the only (3) First Level Management : It is also known as
member of the management team. But as the size of an supervisory / operative level of management. It consist of
organization increases, a more sophisticated supervisor, foreman, section officer, superintendent,
organizational structure is required. Every organization workers and jobbers. People working in lower level
or company has a particular hierarchy. There are management are responsible for direction and controlling
different levels in an organization. Basically there are functions of management. They are responsible for the
three levels : quality as well as quantity of production. Lower level
managers are mediators between workers and higher
(1) Top Level Management level management. This level is sometimes sub divided
(2) Middle Level Management into two levels: a job level consisting of jobbers who are in
(3) First / Supervisory Level Management charge of gang of workers, which is the lowest level and
supervisory level of foreman and supervisors who are at
(1) Top Level Management : Top Level Management upper lower level. Lower level management represents
comprises board of directors, chief executives or actually operating level management.
managing directors. CEO, President, Vice President,
Chairman fall into the category of Top Level From the view point of function of management, planning
Management. The top management is the ultimate is least at this level. The supervisors take part in planning
authority. They will decide goals and policies for an of his department. Their main task is to implement the
enterprise. They focus on planning and coordinating plans prepared by the top management. There is more
functions. Overall activities of company depend on top staffing or personnel management at this level. The lower
level management. They are also responsible towards level is wide-ranging. The directing function is most
the shareholders for the performance of the enterprise. important at this level, because it has direct control over
Top Level Managers are responsible for taking major employees who are actually engaged in production.
decisions for the organization. Functions of top level
management are as below : Here are the functions of first level management :
 Develops and reviews long-range plans and
strategies  Makes detailed, short-range operational plans
 Evaluates overall performance  Reviews performance of subordinates
 Involved in selection of key personnel  Supervises day-to-day operations.
 Consult subordinate managers for problems  Make specific task assignments
 Maintains close contact with employees involved in
(2) Middle Level Management : Middle Level operations.
Management is a link between Top Level and First Level
Management. Middle level incorporates branch
managers and departmental managers. They are Conclusion :
accountable for the functioning of their department.
They will do organization and directional function. There The policies and goals of the company are to be place
are chances for promotion for this level and goes to before the workers. A supervisor is a link between the
top level. Middle level managers execute the plans of management and workers. He has to represent to top
the organization accordance with the goals and policies management the problems of workers.
of the top management. Middle level management is a
training opportunity for the higher positions. Functions The functions related to production are equally important
of Middle Level Management are as below : at the lower level of management. The directives of the
 Makes plans of intermediate range upper management concerning production are to be
 Analyze managerial performance to determine carried out at the lower level only. To achieve the targets
capability of production, the lower level has to ensure that schedule
 Establishes departmental policies of production fixed, production process is continued
 Reviews daily and weekly reports on production uninterruptedly and quality in controlled.
or sales.
 Prepare long-range plans for review by top
management

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 Unit – 1 : Introduction to Management and Organizations

Que : List 14 points guideline for Que : “Management is a Science as well

manager of Deming. as an Art” - Explain
W. Edwards Deming proposed 14 points as a guideline for Management as Process : George R. Terry is of the
top managers. Following are the points suggested by opinion that management is a distinct process consisting
Deming : of planning, organizing, directing and controlling, which
are performed to determine and accomplish objectives by
1."Create constancy of purpose towards improvement". the use of people and resources. Management is a process
Replace short-term reaction with long-term planning. in the sense that it is concerned with planning, executing
and controlling the activities of an enterprise. It is
2."Adopt the new philosophy". The implication is that basically concerned with the interrelationship of people at
management should actually adopt his philosophy, rather work, mainly with directing the performance rather than
than merely expect the workforce to do so. with quantum of work done.

3."Cease dependence on inspection". If variation is Management as Art :

reduced, there is no need to inspect manufactured items
for defects, because there won't be any.  Personal Skills and Knowledge : Art is practical
implementation of personal skills and knowledge
4."Move towards a single supplier for any one item." to achieve outcome. Just like an Artist, a manager
Multiple suppliers mean variation between feedstocks. applies his knowledge and skills to coordinate the
efforts of the people.
5."Improve constantly and forever". Constantly strive to
reduce variation.  Personalized Process : Art is a personalized
process and every artist or a human being has his
6."Institute training on the job". If people are own style. Management is also a personalized
inadequately trained, they will not all work the same way, process. Every manager has his own perception
and this will introduce variation. about the problem and accordingly he decides
the solution for problem.
7."Institute leadership". Deming makes a distinction
between leadership and mere supervision. The latter is  Creativity : Art is essentially creative and the
quota- and target-based. success of an artist is measured by the result
he achieves. Management is creative like any
8."Drive out fear". Deming sees management by fear as other art. In case any new situations arise,
counter- productive in the long term, because it prevents it converts available resources into output
workers from acting in the organization’s best interests. and works towards the goal achievement
earn.
9."Break down barriers between departments".
 Practical Experience : As we know art is
10."Eliminate slogans". Another central TQM idea is that practice based. For perfection, it has to be
it's not people who make most mistakes - it's the process practiced continuously e.g. Music, Dancing, and
they are working within. Painting are also arts. Management needs
sufficiently long period of experience in
11."Eliminate management by objectives". Deming saw managing.
production targets as encouraging the delivery of poor-
quality goods. Management as Science : Science refers to a systematic
body of knowledge acquired through observation,
12."Remove barriers to pride of workmanship". Many of experimentation and intelligent speculation. Management
the other problems outlined reduce worker satisfaction. deals with the systematic knowledge of acquiring the skill
of getting things done through others. Management is an
13."Institute education and self-improvement". accepted science as a way of solving problems and taking
decisions. A scientific attitude is absolutely essential for a
14."The transformation is everyone's job". manager in problem solving and decision making.
Management is neither a science nor an art but is
combination of both.
Prof. Chintan A. Mahida (DJMIT) 8 www.mahidachintan.com
www.chintanmahida.co.cc
 Unit – 1 : Introduction to Management and Organizations

Que : Explain Closed and Open System Que : Explain Formal and Informal
View of Organization. Organization.
Closed System View of Organizations : According to Louis A Formal Organization is a group of people working
E. Boone and David L Kurtz, “Closed system are sets of together cooperatively under authority. This Organization
interacting elements operating without any exchange with depends on authority, responsibility and accountability.
the environment in which they exist. This definition
implies that closed system require no inputs – human , An informal organization is “a network of personal and
financial etc. – from the external environment in which social relation not established or required by the formal
they exist. But no organization can be totally closed organization.
system. For example, a closed system like a wind up alarm
clock requires outside intervention when it slows down or An informal organization focuses on people and their
goes out of order. Thus a totally closed system is only a relationships whereas a formal organization focuses on
theoretical concept. official positions in terms of authority, responsibility and
accountability.
The two basic characteristics of a closed system are :
(1) It is perfectly deterministic and predictable In an informal organization, ‘power’ is associated with a
(2) There is no exchange between the system and the person but in a formal organization, ‘power’ is associated
external environment. with a position. In other words, in informal organizations,
power is purely personal in origin, while in formal
If one college campus converts into deemed university, organizations , power is institutional in origin. The
then it becomes closed system. To some extent, you can informal organization may or may not support the goals
predict styles of exam, schemes, and syllabus as there is and objectives established by the formal organizations.
no exchange with any affiliated university. So rules and
norms somehow remain predictable. Informal relationships develop spontaneously,
supplementing or modifying the formal relationship
established by the management. For example, an informal
Open System View of Organizations : Traditional closed relationship may be established among people who may
system views ignored the influence of the external have lunch together. Informal relationship can help a
environment. This sometimes led to the failure of plans company attain organizational goals as people may find it
and inefficient handling of resources. Boone and Kurtz easier to seek help from someone they know informally.
define an open system as “A set of elements that interact
with each other and the environment, and whose The emergence of informal organizations within a formal
structure originates as a result of interaction.” framework is a natural process. Informal groups are
formed to share their common attitudes, beliefs etc.
The open system concept is based on the assumption that
no system is totally deterministic or predictable because Formal Organization :
of the uncertainties in the external environment.
 Official
For example, If one college is affiliated with some  Authority and Responsibility
university, then it is an open system because there is  Position
exchange with external environment. You cannot predicts
 Delegated by Management
rules and norms for upcoming semester as university can
 Rules
change rules. Thus, system remains unpredictable
 Reward and Penalties
because of uncertainties in external environment.
Informal Organization :
Tihar jail is a closed system while an advertising agency is
an example of open system.
 Unofficial
An Organization is a system consisting of several  Power and Politics
subsystem which interact with another. The Organization  Person
is a subsystem of a larger system.  Given by group
 Norms
 Sanctions

Prof. Chintan A. Mahida (DJMIT) 9 www.mahidachintan.com

www.chintanmahida.co.cc
 Unit – 1 : Introduction to Management and Organizations

Que : Explain Characteristics / Features of Que : Innovative Management for Turbulent

Management. Times

(1) Management is Goal Oriented : Management is We are living in turbulent times. Turbulent times is a
highly goal oriented activity. The success of climate in which there is no stability for the business
management can be measured in terms of the entities and there is change for all angles you never know
achievement of predetermined goals or objectives of an what to expect. We have now entered the period of
organization. problem which contains climate change, financial
instability, high unemployment and the financial
(2) Management is Continuous : Management involves consequences of an aging society.
continuous handling of problems and issues. It is an
ongoing process. It includes the problem identification There are problems of recession. Technology is changing
and finding out the solution by taking appropriate steps. continuously and businesses don’t know how it will affect
them. The million dollar question is how one is supposed to
(3) Management is Time Oriented : Management is manager his business in such turbulent times. The second
nothing but a race against time. In today’s world question that comes to one’s mind is what happen to
everyone wants to impress customers. Customer is innovation. Innovations are rising like anything. But
most impressed if he receives service in time. companies have faced this challenge and have planned to
Management ensures that the production schedules are fight with this problem. Many thinkers believes that the
met and the targets are achieved. innovation process should not stop but more innovation
does not necessary mean smart innovation. These
(4) Management is a Group Activity : Management is innovations should also responsible for the revival of
more concerned with the group activity rather than business. Smart innovation is built on effective
individual’s performance. The efforts measured are in competence for renewal and superior management
terms of groups to achieve predetermined goals or capabilities. Innovation gives growth and competitive
objectives. advantaged to the company. The major challenge for the
management is to reduce the risk element and the chances
(5) Management integrates Human, Physical and of failure in the innovation. The method to achieving this
Financial Resources : In any organization, the result is incremental innovation with cumulative impact.
different resources used are humans, machines,
materials, financial assets, building etc. Humans have to Que : Explain Management as Profession.
work with non-human resources to perform their jobs.
The management plays very important role here. It A field or a concept is characterized as profession when the
integrates human efforts to those non-human resources. following special features are incorporated :
It brings harmony among available resources.
1. Systematic body of knowledge of a profession
Management is concerned with guidelines to the human 2. Importance of its learning and proper organization
as well as the resources of the organization to achieve of the science
the organizational goal. Management is linked with other 3. Entry restricted on the basis of examination or
fields of study Anthropology, Economics, Philosophy education or training
and Political Science. 4. Dominance of service motive

Management is basically a human process which deals Management qualifies all test of a profession. It is backed
with interpersonal relationship in any organization in the by a systematic body of knowledge. A number of
form of formal relationships of superior subordinates and management principles have been developed which need
peers. Management basically deals with the living human proper learning and education. Management is more
resources compared to the other non-human resources creative rather than adaptive. It also deals with ethical and
like machines, material, money etc. Management is a social responsibilities towards the society.
specialty in dealing with matters of time and human
relationship. Another important development in the field of
management has been that the professional management
Que : “Management is a specialty in consultants are growing both in number and quality.
dealing with matters of time and human Professional attributes are very much present in the
relationship.” – Justify (Same Answer) concept of management.

Prof. Chintan A. Mahida (DJMIT) 10 www.mahidachintan.com

www.chintanmahida.co.cc