CHAPTER ONE

THE NATURE AND SCOPE OF MANAGEMENT

Management is what managers ‘do’, It is the process of coordinating work activities through other people so
that work activities are completed efficiently and effectively. The Term ‘Management’ is used to refer to the
act of maintaining the activities of an Enterprise. In layman’s Language Management refers to the group of
personnel of an enterprise who have a supervisor role over others. Example Good quality of Management
and Bad Quality of Management. In simple terms, Management is the process of getting things done,
effectively and efficiently, through other people.

For management, it is important to be effective and efficient. Effectiveness and efficiency are two sides of the
same coin. But these two aspects need to be balanced and managed at all time, a manager has to
compromise with efficiency. For example, it is easier to be effective and ignore efficiency i.e., complete the
given task but at a high cost. Suppose, a company’s target production is 5000 units in a year. To achieve this
target the manager has to operate on double shifts due to power failure most of the time. The manager can
produce 5000 units but at a higher production cost. In this case, the manager was effective but not so
efficient, since for the same output, more inputs labor cost, electricity costs were used.

At times, a business may concentrate more on producing goods with fewer resources i.e., cutting down costs
but not achieving the target production. Consequently, the goods do not reach the market and hence the
demand for them declines and competitors enter the market. This is a case of being efficient but not effective
since the goods did not reach the market. Therefore, it is important for management to achieve goals
(effectiveness) with minimum resources i.e., as efficiently as possible while maintaining a balance between
effectiveness and efficiency. Usually, high efficiency is associated with high effectiveness which is the aim of
all managers. But an undue emphasis on high efficiency without being effective is also not desirable. Poor
management is due to both inefficiency and ineffectiveness.

In simple, efficiency Means doing things correctly; refers to the relationship between inputs and
outputs; Seeks to minimize the resource and costs. Effectiveness means doing the right things; Goal
Attainment.

In total, we can understand that Management takes place within an organization structure. Management is
positioned at the top under which everything falls. The manager is the foundation upon which an
organization is built. Within the organization, structure managers allocate resources (Like men material
machinery methods, and money) and Manager uses the functions (such as Planning organizing staffing
directing coordinating, and controlling) most efficiently and effectively to achieve organizational goals (such
as increasing the sales and profitability, etc.)

MANAGEMENT DEFINITIONS

It is very difficult to give a precise definition of the term ‘management’. Different scholars from different
disciplines view and interpret management from their own angles. The economists consider management as
a resource like land, labour, capital and organization. The bureaucrats look upon it as a system of authority to
achieve business goals. The sociologists consider managers as a part of the class elite in the society.

The definitions by some of the leading management thinkers and practitioners are given below:
 (i) Management consists in guiding human and physical resources into a dynamic, hard-hitting
organizational unit that attains its objectives to the satisfaction of those served and with a high degree
of morale and sense of attainment on the part of those rendering the service. —Lawrence A. Appley
(ii) Management is the coordination of all resources through the process of planning, organizing,
directing, and controlling in order to attain stated objectives. —Henry L. Sisk.
(iii) Management is principally the task of planning, coordinating, motivating, and controlling the efforts of
others towards a specific objective. —James L. Lundy
(iv) Management is the art and science of organizing and directing human efforts applied to control the
forces and utilize the materials of nature for the benefit of man. —American Society of Mechanical
Engineers
(v) Management is the act of getting things done through others. ----Mary Parker Follet
(vi) Management is the creation and maintenance of an internal environment in an enterprise where
individuals, working in groups, can perform efficiently and effectively towards the attainment of group
goals. —Harold Koontz and Cyrill O’Donnell
(vii) Management is the art of knowing what you want to do and then seeing that it is done in the best and
cheapest way. —F.W. Taylor
(viii) To manage is to forecast and to plan, to organize to command, to coordinate, and to control. —Henry
Fayol
(ix) Management is the function of executive leadership anywhere. —Ralph C. Davis
(x) Management is concerned with seeing that the job gets done; its tasks all centre on planning and
guiding the operations that are going on in the enterprise. —E.F.L. Breach
(xi) Management is a distinct process consisting of planning, organizing, actuating and controlling
performed to determine and accomplish the objectives by the use of people and resources. —George
R. Terry Nature and Scope of Management
(xii) Management is guiding human and physical resources into dynamic organizational units which attain
their objectives to the satisfaction of those served and with a high degree of morale and sense of
attainment on the part of those rendering service. —American Management Association
(xiii) Management is a multipurpose organ that manage a business and manages Managers and manages
Workers and work. —Peter Drucker

NOTE: It may be noted that Management is not just getting things done through others. It is getting things
done through others by satisfying their needs and providing them with the opportunities for growth and
advancement. It is the process for the utilization of minimum input for the production of maximum output.

CHARACTERISTICS OF MANAGEMENT

Management is an activity concerned with guiding human and physical resources such that organizational
goals can be achieved. Nature of management can be highlighted as: -

i) Management is Goal-Oriented: The success of any management activity is accessed by its achievement
of the predetermined goals or objective. Management is a purposeful activity. It is a tool which helps use
of human & physical resources to fulfill the pre-determined goals. For example, the goal of an enterprise
is maximum consumer satisfaction by producing quality goods and at reasonable prices. This can be
achieved by employing efficient persons and making better use of scarce resources.
ii) Management integrates Human, Physical and Financial Resources: In an organization, human beings
work with non-human resources like machines. Materials, financial assets, buildings etc. Management
 integrates human efforts to those resources. It brings harmony among the human, physical and financial
resources.
iii) Management is Continuous: Management is an ongoing process: It involves continuous handling of
problems and issues. It is concerned with identifying the problem and taking appropriate steps to solve it,
e.g. the target of a company is maximum production. For achieving this target various policies have to be
framed but this is not the end. Marketing and Advertising is also to be done. For these policies have to be
again framed. Hence this is an ongoing process.
iv) Management is Universal: Management is required in all types of organizations whether it is political,
social, cultural or business because it helps and directs various efforts towards a definite purpose. Thus
clubs, hospitals, political parties, colleges, hospitals, business firms all require management. Whenever
more than one person is engaged in working for a common goal, management is necessary. Whether it is
a small business firm which may be engaged in trading or a large firm like Tata Iron & Steel, management
is required everywhere irrespective of size or type of activity.
v) Management is a Group Activity: Management is very much less concerned with individual‘s efforts. It is
more concerned with groups. It involves the use of group effort to achieve predetermined goal of
management of an organization.
vi) System of authority: Authority is the power to compel men to work in a specific manner. Management
cannot work in the absence of authority. There is a chain of authority and responsibility among people
working at different levels of the organization. There cannot be an efficient management without well-
defined lives of command a superior subordinate relationship at every levels of decision making.
vii) It is a distinct function: Management is a distinct function performed to fix and achieve stated objectives
by the use of manpower and other factors of production. Different from the activities, techniques and
procedures, the process of management consists of such functions as planning, organizing, staffing,
directing, coordinating, motivating and controlling

On the basis of these characteristics, management may be defined as a continuous social process involving
the coordination of human and material resources in order to accomplish desired objectives. It involves both
the determination and the accomplishment of organizational goals.

FUNCTIONS OF MANAGEMENT

The functions of Management are common to all alike; weather a business firm or a non-business firm.
Management‘s primary function is the satisfaction of the stakeholders. This typically involves making a profit
(for the shareholders), creating valued products at a reasonable cost (for customers), and providing
rewarding employment opportunities (for employees). This can be achieved only when management
accomplishes its functions. Following are the common functions of management:

1. PLANNING: Planning means looking ahead and chalking out future courses of action to be followed taking
into consideration available & prospective human and physical resources. It is a systematic activity which
determines when, how and who is going to perform a specific job. It is rightly said “Well plan is half
done”. According to Koontz & O‘Donnell, Planning is deciding in advance what to do, how to do and who
is to do it. Planning bridges the gap between where we are to, where we want to go. It makes possible
things to occur which would not otherwise occur. Planning requires administration to assess appropriate
course of action to attain the company’s goals and objectives. For management to do this efficiently, it
has to be very practical and simple. Planning is important at all levels of management.
2. ORGANIZING: Organizing is the function of management which follows planning. It is a function in which
the synchronization and combination of human, physical and financial resources take place. All the three
resources are important to get results. Therefore, organizational function helps in achievement of results
which in fact is important for the functioning of a concern. Hence, a manager always has to organize in
order to get results.
3. STAFFING: The managerial function of staffing involves manning the organization structure through
proper and effective selection, appraisal and development of the personals to fill the roles assigned to
the employers/workforce. Staffing pertains to recruitment, selection, development and compensation of
subordinates.
4. DIRECTING: Directing is a process in which the managers instruct, guide and oversee the performance of
the workers to achieve predetermined goals. Planning, organizing, staffing has got no importance if
direction function does not take place.
5. CO-ORDINATING: Co-ordinating is the process of combining or grouping the efforts of the members of
the organization, irrespective of their performance background. Co-ordination tries to achieve harmony
between individual’s efforts towards achievement of group goals and it’s a key to success of
management. Management seeks to achieve co-ordination through its basic functions of planning,
organizing, staffing, directing and controlling. Co-ordination is achieved through planning, organizing,
staffing, directing and controlling. Co-ordination is life-line of management. It is required in each and
every function and at each and every stage and therefore it cannot be separated.
6. CONTROLLING: Controlling is measuring and correcting individual or organizational performance to
ensure that event confirm to plans. It involves measuring performance against set goals and plans
showing where deviations from the standards exist and helping to correct those deviations. The control
process is cyclical which means it is never ending. Employees often view controlling negatively No matter
how positive the changes may be for the organization, Controlling is a four-step process of establishing
performance standards based on the firm's objectives, measuring and reporting actual performance,
comparing the two, and taking corrective or preventive action as necessary.

IMPORTANCE OF MANAGEMENT

Management is indispensable for the successful functioning of every organization. It is all the more important
in business enterprises. No business runs in itself, even on momentum. Every business needs repeated
stimulus which can only be provided by management. According to Peter Drucker, “management is a
dynamic lifegiving element in an organization, without it the resources of production remain mere resources
and never become production”.

The importance of management has been highlighted clearly in the following points:

1. It helps in Achieving Group Goals: Management converts disorganized resources of men, machines,
money etc. into useful enterprise. It arranges, assembles, organizes and integrates the factors of
production. These resources are coordinated, directed and controlled in such a manner that enterprise
work towards attainment of goals.
2. Optimum Utilization of Resources: Management utilizes all the physical and human resources
productively. Management provides maximum utilization of scarce resources by selecting its best
possible alternate use in industry from out of various uses. This leads to optimum utilization of resources
and avoid wastage.
 3. Reduces Costs: It gets maximum results through minimum input by proper planning and by using
minimum input and getting maximum output. Management uses physical, human and financial
resources in such a manner which results in best combination. This helps in cost reduction.
4. Establishes Sound Organization: To establish sound organizational structure is one of the objective of
management which is in tune with objective of organization and for fulfillment of this, it establishes
effective authority and responsibility relationship i.e. who is accountable to whom, who can give
instructions to whom, who are superiors and who are subordinates.
5. Establishes Equilibrium: It enables the organization to survive in changing environment. It adapts
organization to changing demand of market / changing needs of societies. It is responsible for growth
and survival of organization.
6. Essentials for Prosperity of Society: Efficient management leads to better economical production which
helps in turn to increase the welfare of people. It improves standard of living, increases the profit which
is beneficial to business and society will get maximum output at minimum cost by creating employment
opportunities which generate income.
7. Generation of employment: By setting up and expanding business enterprises, managers create jobs for
the people. People earn their livelihood by working in these organizations. Managers also create such an
environment that people working in enterprise can get job satisfaction and happiness. In this way
managers help to satisfy the economic and social needs of the employees.

DISTINCTION BETWEEN MANAGEMENT AND ADMINISTRATION

There has been a controversy on the use of these two terms-management and administration. Many experts
make no distinction between administration and management and use them as synonyms. Several American
writers consider them as two distinct functions.

The management experts like Elbourne, Unwick and Mary Follett regarded ‘administration’ and
‘management’ as synonymous and use them interchangeably in their works. But Schuze and Sheldon found
distinction between these two concepts. According to them the distinction is important to clearly understand
the role of people in administrative positions versus those in managerial positions.

Oliver Sheldon in his book “The Philosophy of Management” defines ‘Administration as a function is
concerned with the determination of the corporate policy, the coordination of finance, production and
distribution, the settlement of the compass (i.e., structure) of the organization, under the ultimate control of
the executive.’ On the other hand, ‘Management is concerned with the execution of the policy, within the
limits setup by administration and the employment of the organization for the particular objects before it.
Thus, Sheldon declares administration as a thinking process and management as doing process. In other
words, management is a concomitant of administration.

E.F.L. Breach distinguishes administration and management. Breach considers management as a social
process entailing the responsibility for effective planning, regulation, coordination and control of operations
including the responsibility for personnel supervision. According to him, the administration is that part of
management which is concerned with the installation and carrying out the procedures by which the progress
of activities is regulated and checked against plans.

Few authors treat administration as part of management. These three points of view are explained
below.

1. Administration is different from management: According to this view point, administration is a

higher-level activity while management is a lower level function. Administration is a determinative
 function concerned with the determination of objectives and policies while management is an
executive function involving the implementation of policies and direction of efforts for the
achievement of objectives. This view is held largely by American experts on management.
2. Administration is a part of management: According to the European School of thought, management
is a wider term including administration and organization. This viewpoint has been propounded by
Breach. According to him, “Management is the generic term for the total process of executive control
involving responsibility for effective planning and guidance of operations of an enterprise.
Administration is that part of management which is concerned with the installation and carrying out
of the procedures by which the programme is laid down and communicated and the progress of
activities is regulated and checked against plans”. Kimball and Kimball, Richman and Copen also hold
similar views. According to them, administration is only an implementing agency while management
is determinative. Thus, the European viewpoint is exactly opposite to the American opinion.
3. Administration and management are one: Many writers like Henri Fayol, William Newman, Chester
Barnard, George Terry, Louis. A. Allen, Koontz and O’ Donnell make no distinction between
management and administration. According to Newman, Management or administration is “the
guidance, leadership and control of the efforts of a group of individuals towards some common
goals”. According to Fayol, all undertakings require the same functions and all must observe the same
principles. There is one common science which can be applied equally well to public and private
affairs. Therefore, the distinction between administration and management is superfluous or
academic. In actual practice, the two terms are used interchangeably. The term administration is
more popular in Government and other public organizations while the word management is more
commonly used in the business world, where economic performance is of primary importance.
The foregoing description reveals that both management and administration are based upon the
same set of principles and functions. It may be possible to make theoretical or conceptual distinction
between the two. But in practice such a distinction is misleading. In order to resolve the
terminological conflict between administration and management, we may classify management into:
I. Administrative management; and
II. Operative management.

Distinction between Administration and Management

Points of distinction Administration Management

Nature It is a determinative or thinking It is an executive or doing
function function
Type of work It is concerned with the It is concerned with the
determination of major objectives implementation of policies
and policies
Levels of authority It is mainly a top-level function It is largely a middle and lower
level function
Influence Administrative decisions are Managerial decisions are
influenced mainly by public influenced by objectives and
opinion and other outside forces policies of the organization.
Direction of human efforts It is not directly concerned with It is actively concerned with
the direction of human efforts direction of human efforts in the
execution of plans
Main functions Planning and control are the main Directing and organizing are the
functions involved in it main functions involved in it
Skills required Conceptual and human skills Technical and human skills
 Usage Used largely in Government and Used mainly in business
Public sector organizations
Illustrations Commissioner, Registrar, Vice- Managing Director, General
Chancellor, Governor etc. Manager, Sales Manager, Branch
Manager etc.

LEVELS OF MANAGEMENT

Every business organization, irrespective of its size, has many managerial positions in its structure. These
positions are created through the process of delegation of authority from top to lower levels. Each position is
marked by authority, responsibility, functions, roles and relationships.

Generally, the levels of management consisting of various managerial positions in the structure of an
organization, differ from one organization to another, depending on the size of business activity, philosophy
of management, span of control and other related factors. But, in a joint stock company, for conducting its
business efficiently, managerial personnel may be placed in three levels, that is, top, middle and lower or
supervisory level.

1. Top Level Management: The top-level management is generally occupied by the ownership group. In a
joint stock company, equity shareholders are the real owners of the company. Thus, they elect their
representatives as directors, form a board, known as board of directors, which constitutes the top level of
management. Besides the board, other functionaries including managing director, general manager or
Chief executive to help directors, are included in this level. It is the highest level in the managerial
hierarchy and the ultimate source of authority in the organization. The top-level managers are
accountable to the owners and responsible for overall management of the organization. The major
functions of the top-level management are as under:
i. To make a corporate plan for the entire organization covering all areas of operations.
ii. To decide upon the matters which are vital for the survival, profitability and growth of the
organization such as introduction of new product, shifting to new technology and opening new plant
etc.
iii. To decide corporate goals.
iv. To decide structure of organization, creating various positions there in
v. To exercise overall managerial control through the process of reviewing over all financial and
operating results.
vi. To make decisions regarding disposal and distribution of profits.
vii. To select key officials and executives for the company.
viii. To coordinate various sub-systems of the organization.
ix. To maintain liaison with outside parties having a stake in business such as government, trade union
and trade associations etc.
x. To formulate basic policies and providing direction and leadership to the organization as a whole.
2. Middle Level Management: In order to fill up the gap which exists between functional and operative
level, some managerial positions are created at the middle level of management. Middle level
management consists of departmental managers, deputy managers, foreman and administrative
officers etc. These executives are mainly concerned with the overall functioning of their respective
departments. They act as a link between top and lower level managers. The activities of middle level
managers centres around determining departmental goals and devising ways and means for
accomplishing them. The main functions performed by these managers are as under:
 i. To prepare departmental plan covering all activities of the department within the basic framework
of the corporate plan.
ii. To establish departmental goals and to decide upon various ways and means for achieving these
goals to contribute to organizational goals.
iii. To perform all other managerial functions with regard to departmental activities for securing
smooth functioning of the entire department.
iv. To issue detailed orders and instructions to lower level managers and coordinate the activities of
various work units at lower level.
v. Middle level managers explain and interpret policy decisions made at the top level to lower level
managers.

3. Lower Level or Supervisory Level Management: Lower-level management is known as supervisory

management, because it is concerned mainly with personal oversight and direction of operative
employees. It consists of factory supervisors, superintendents, foremen, sales supervisors, accounts
officers etc. They directly guide and control the performance of rank and file workers. They issue orders
and instructions and guide day to-day activities. They also represent the grievances of the workers to
the higher levels of management. Supervisory management performs the following functions:
i. Planning of day to day work
ii. Assignment of jobs and issuing orders and instructions
iii. Supervising and guiding workers
iv. Maintaining close personal contacts with workers to ensure discipline and team-work
v. Evaluating operating performance
vi. Sending reports and statements to higher authorities
vii. Communicating the grievances and suggestions of workers to higher authorities.

SKILLS OF MANAGEMENT

In modern business the job management has become very difficult. Several skills are required to manage
successfully a large organization in a dynamic environment. These skills of managers have been classified into
four categories, namely technical, human and conceptual skills.

1. Conceptual Skills: Conceptual skills comprise the ability to see the whole organization and the
interrelationships between its parts. These skills refer to the ability to visualize the entire picture or to
consider a situation in its totality. Such skills help the manager to conceptualize the environment, to
analyze the forces working in a situation and take a broad and farsighted view of the organization.
Conceptual skills also include the competence to understand a problem in all its aspects and to use
original thinking in solving the problem. Such competence is necessary for rational decision-making.
2. Human Skills: Human skills consists of the ability to work effectively with other people both as individual
and as members of a group. These are required to win cooperation of others and to build effective work
teams. Such skills require a sense of feeling for others and capacity to look at things from others point of
view. Human skills are reflected in the way a manager perceives his superiors, subordinates and peers.
An awareness of the importance of human skills should be part of a manager’s orientation and such
skills should be developed throughout the career. While technical skills involve mastery of ‘things’
human skills are concerned with understanding of ‘People’.
3. Technical Skills: Technical skills refer to the ability and knowledge in using the equipment, technique
and procedures involved in performing specific tasks. These skills require specialized knowledge and
 proficiency in the mechanics of particular job. Ability in programming and operating computers is, for
instance, a technical skill. There are two things a manager should understand about technical skills. In
the first place, he must know which skills should be employed in his particular enterprise and be familiar
enough with their potentiality to ask discerning questions of his technical advisors. Secondly a manager
must understand both the role of each skill employed and interrelations between the skills

Thus, technical skills deal with jobs, human skills with persons and conceptual skills with ideas. These types of
skills are interrelated. But the proportion or relative significance of these skills varies with the level of
management as shown in the diagram below;

Top Conceptual
mgt level skill

Middle mgt Human

level skill

Lower mgt level Technical skill

Managerial levels and skills

Technical skills are most important at the supervisory or operating level where a close understanding of job
techniques is necessary to guide workers. As one moves up the management hierarchy, technical skills
become less important. Higher level managers deal with subordinate managers and specialized technical
knowledge is comparatively less important for them. Conceptual skills are very important for top
management in formulating long-range plans, making broad policy decisions, and relating the business
enterprise to its industry and the economy. Thus, the relative importance of conceptual skills increases as we
move to higher levels of management. This would be self-evident as management is the process of getting
things done through people. Human skills are equally important at all levels of management because every
manager has to deal with people.

IS MANAGEMENT AN ART OR A SCIENCE?

Management knowledge exhibits characteristics of both art and science, the two not mutually exclusive but
supplementary. Every discipline of art is always backed by science which is basic knowledge of that art.
Similarly, every discipline of science is complete only when it is used in practice for solving various kinds of
problems faced by human beings in an organization or in other fields of social life which is more related to an
art. Art basically deals with an application of knowledge personal skill and know-how in a specific situation for
efficiently achieving a given objective. It is concerned with the best way of doing things and is consequently,
personalized in nature.

During the primitive stages of development of management knowledge, it was considered as an art. There
was a jungle of managerial knowledge. It was not codified and systemized. People used it to get things done
by others, in their own way giving an impression that whosoever uses it, knows the art of using it. This kind of
loose and inadequate understanding of management supported the view that it was an art
 MANAGEMENT AS A SCIENCE

Science means a systematic body of knowledge pertaining to a specific field of study. It contains
general principles and facts which explains a phenomenon. These principles establish cause-and-effect
relationship between two or more factors. These principles and theories help to explain past events and may
be used to predict the outcome of actions. Scientific methods of observations, and experiments are used to
develop principles of science. The principles of science have universal application and validity.

Thus, the essential features of science are as follows:

i. Basic facts or general principles capable of universal application

ii. Developed through scientific enquiry or experiments
iii. Establish cause and effect relationships between various factors.
iv. Their Validity can be verified and they serve as reliable guide for predicting future events.

Let us now examine as to what extent management satisfies the above conditions:

(i) Systematic body of knowledge: Management has a systematic body of knowledge consisting of
general principles and techniques. These help to explain events and serve as guidelines for managers
in different types of organizations.
(ii) Universal principles: Scientific principles represent basic facts about a particular field enquiry. These
are objective and represent best thinking on the subject. These principles may be applied in all
situations and at all times. Exceptions, if any, can be logically explained. For example, the Law of
Gravitation states that if you throw an object in the air it will fall on the ground due to the
gravitational force of the earth. This law can be applied in all countries and at all points of time. It is as
applicable to a football as it is to an apple falling from tree. Management contains sound fundamental
principles which can be universally applied. For instance, the principle of unity of command states that
at a time one employee should be answerable to only one boss. This principle can be applied in all
types of organization-business or non-business. However, principles of management are not exactly
like those of physics or chemistry. They are flexible and need to be modified in different situations.
(iii) Scientific enquiry and experiments: Scientific principles are derived through scientific investigation
and reasoning. It means that there is an objective or unbiased assessment of the problem situation
and the action chosen to solve it can be explained logically. Scientific principles do not reflect the
opinion of an individual or of a religious guru. Rather these can be scientifically proved at any time.
They are critically tested. For example, the principle that the earth revolves around the sun has been
scientifically proved.
Management principles are also based on scientific enquiry and investigation. These have been
developed through experiments and practical experience of a large number of managers. For example,
it has been observed that wherever one employee has two or more bosses simultaneously, confusion
and indiscipline are likely to arise, with regard to following the instructions
(iv) Cause and effect relationship: Principles of science lay down a cause and effect relationship between
related factors. For example, when water is heated up to 100ºC, it starts boiling and turns into vapor.
Similarly, the principles of management establish cause and effect relationship between different
variables. For instance, lack of balance between authority and responsibility will cause management to
become ineffective.
(v) Tests of validity and predictability: Validity of scientific principles can be tested at any time and any
number of times. Every time the test will give the same result. Moreover, the future events can be
 predicted with reasonable accuracy by using scientific principles. For example, the Law of Gravitation
can be tested by throwing various things in the air and every time the object will fall on the ground.
Principles of management can also be tested for their validity. For example, the principle of unity of
command can be tested by comparing two persons, one having a single boss and other having two
bosses. The performance of the first person will be higher than that of the second.

Thus, management is undoubtedly a science. It contains a systematic body of knowledge in the form of
general principles which enjoy universal applicability. However, management is not as exact a science—
Physics, Chemistry, Biology and other Physical sciences. This is because management deals with people and it
is very difficult to predict accurately the behavior of living human beings. Management principles are
universal but they cannot be expected to give exactly the same results in every situation. That is why
management is known as a soft science. Management is a social science. It is still growing, with the growing
needs of human organizations.

MANAGEMENT AS AN ART

Art implies the application of knowledge and skills to bring about the desired results. The essential elements
of arts are:

i. Practical knowledge
ii. Personal skill
iii. Result oriented approach
iv. Creativity
v. Improvement through continuous practice

Let us judge how far management fulfils these requirements:

i. Practical knowledge: Every art signifies practical knowledge. An artist not only learn the theory but also
its application in practice. For example, a person may have adequate technical knowledge of painting but
he cannot become a good painter unless he knows how to make use of the brush and colors. Similarly, a
person cannot become a successful manager simply by reading the theory and getting a degree or
diploma in management. He must also learn to apply his knowledge in solving managerial problems in
practical life. A manager is judged not just by his technical knowledge but by his efficiency in applying this
knowledge.
ii. Personal skill: Every artist has his own style and approach to his job. The success of different artists
differs even when all of them possess the same technical knowledge or qualifications. This is due to the
level of their personal skills. For example, there are several qualified singers but Lata Mangeshkar has
achieved the highest degree of success. Similarly, management is personalized. Every manager has his
individual approach and style in solving managerial problems. The success of a manager depends on his
personality in addition to his technical knowledge.
iii. Result-oriented approach: Arts seeks to achieve concrete results. The process of management is also
directed towards the accomplishment of desirable goals. Every manager applies certain knowledge and
skills to achieve the desired results. He uses men, money, materials and machinery to promote the
growth of the organisation.
iv. Creativity: Art is basically creative and an artist aims at producing something that had not existed before.
Therefore, every piece of art requires imagination and intelligence to create. Like any other art,
management is creative. A manager effectively combines and coordinates the factors of production to
 create goods and services. Molding the attitudes and behavior of people at work, towards the
achievement of the desired goals is an art of the highest order.
v. Improvement through people: Practice makes one perfect. Every artist become more and more efficient
through constant practice. A dancer, for example, learns to perform better by continuously practicing a
dance. Similarly, manager gains experience through regular practice and becomes more effective.

Thus, “management is both a science as well as an art”. It is a science because it has an organized body of
knowledge consisting of certain universal facts. It is known as an art because it involves creating results
through practical application of knowledge and skills. However, art and science are complementary to each
other. They are not mutually exclusive. Science teaches one to know and art to do. Art without science has no
guide and science without art is knowledge wasted.

For example, a person cannot be a good surgeon unless he has scientific knowledge of human anatomy and
the practical skill of applying that knowledge in conducting an operation.

Similarly, a successful manager must know the principles of management and also acquire the skill of
applying those principles for solving managerial problems in different situations. Knowledge of principles and
theory is essential, but practical application is required to make this knowledge fruitful. One cannot become
an effective manager simply by learning management principles by heart. Science (theory) and art (practice)
are both essential for the success of management.

MANAGERS AND MANAGERIAL ROLES

A Manager is the person responsible for planning and directing the work of a group of individuals, monitoring
their work, and taking corrective action when necessary. For many people, this is their first step into a
management career.

Managers may direct workers directly or they may direct several supervisors who direct the workers. The
manager must be familiar with the work of all the groups he/she supervises, but does not need to be the best
in any or all of the areas. It is more important for the manager to know how to manage the workers than to
know how to do their work well.

A manager's title reflects what he/she is responsible for. An Accounting Manager supervises the Accounting
function. An Operations Manager is responsible for the operations of the company. The Manager of Design
Engineering supervises engineers and support staff engaged in design of a product or service. A Night
Manager is responsible for the activities that take place at night. There are many management functions in
business and, therefore, many manager titles. Regardless of title, the manager is responsible for planning,
directing, monitoring and controlling the people and their work.

MANAGERIAL ROLES

Management performs the functions of planning, organizing, staffing, directing and controlling for the
accomplishment of organizational goals. Any person who performs these functions is a manager. Dr. Henry
Mitzberg identified 10 roles of a manager played in an organization which falls into 3 basic categories:

1. Interpersonal roles
2. Informational roles
 3. Decisional roles
1. Interpersonal Roles: These roles relate to the manager’s behavior that focuses on interpersonal contact
Interpersonal roles are roles that involve people (subordinates and persons outside the organization)
and other duties that are ceremonial and symbolic. According to Dr. Henry Mintzberg, these three
interpersonal roles derive from the authority and status associated with managers’ post. The three
interpersonal roles include;
i. Figurehead: In this role, every manager has to perform some duties of a ceremonial nature, such as
greeting the touring dignitaries, attending the wedding of an employee, taking an important customer to
lunch and so on.
ii. As a leader: every manager must motivate and encourage his employees. He must also try to reconcile
their individual needs with the goals of the organization.
iii. Liaison: In this role of liaison, every manager must cultivate contacts outside his vertical chain of
command to collect information useful for his organization.
2. Informational Roles: Informational roles involve receiving, collecting, and disseminating information. It
is sub—divided into the following;
i. Monitor: As monitor, the manager has to perpetually scan his environment for information, interrogate
his liaison contacts and his subordinates, and receive unsolicited information, much of it as result of the
network of personal contacts he has developed.
ii. Disseminator: In the role of a disseminator, the manager passes some of his privileged information
directly to his subordinates who would otherwise have no access to it.
iii. Spokesman: In this role, the manager informs and satisfies various groups and people who influence his
organization. Thus, he advises shareholders about financial performance, assures consumer groups that
the organization is fulfilling its social responsibilities and satisfies government that the origination is
abiding by the law.
3. Decisional Roles: Decisional roles revolved around making choices. Managers’ interpersonal role leads
to decisional roles. Information and resources that are collected and gathered by the interpersonal
make a manager able to play the decisional roles or responsibilities that he is obligated to.
i. Entrepreneur: In this role, the manager constantly looks out for new ideas and seeks to improve his unit
by adapting it to changing conditions in the environment.
ii. Disturbance Handler: In this role, the manager has to work like a fire fighter. He must seek solutions of
various unanticipated problems – a strike may loom large a major customer may go bankrupt; a supplier
may renege on his contract, and so on.
iii. Resource Allocator: In this role, the manager must divide work and delegate authority among his
subordinates. He must decide who will get what.
iv. Negotiator: The manager has to spend considerable time in negotiations. Thus, the chairman of a
company may negotiate with the union leaders a new strike issue, the foreman may negotiate with the
workers a grievance problem, and so on.

In addition, managers in any organization work with each other to establish the organization’s long-range
goals and to plan how to achieve them. They also work together to provide one another with the accurate
information needed to perform tasks. Thus, managers act as channels of communication with the
organization.

MANAGEMENT AS A PROCESS
Management as a process can be regarded as a systematic way of doing things. Management is considered a
process because it involves a series of interrelated functions. It consists of getting the objectives of an
organisation and taking steps to achieve objectives. The management process includes planning, organizing,
staffing, directing and controlling functions. Management as a process has the following implications:

(i) Social Process: Management involves interactions among people. Goals can be achieved only
when relations between people are productive. Human factor is the most important part of the
management.
(ii) Integrated Process: Management brings human, physical and financial resources together to put
into effort. Management also integrates human efforts so as to maintain harmony among them.
(iii) Continuous Process: Management involves continuous identifying and solving problems. It is
repeated every now and then till the goal is achieved.
(iv) Interactive process: Managerial functions are contained within each other. For example, when a
manager prepares plans, he is also laying down standards for control.

REVIEW QUESTIONS

1. Differentiate between management and administration.

2. “Management is an art as well as science” Explain.
3. Explain the characteristics of management.
4. Explain the various levels of management.
5. Explain the importance of management.
6. Describe the skills of a good manager.