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Lecture 1 Management Science

Characteristics of Management
Universal: All the organizations, whether it is
profit-making or not, they require management, for
managing their activities. Hence it is universal in
Goal-Oriented: Every organization is set up with
a predetermined objective and management helps
in reaching those goals timely, and smoothly.
Continuous Process: It is an ongoing process
which tends to persist as long as the
organization exists. It is required in every sphere
of the organization whether it is production,
human resource, finance or marketing.
Multi-dimensional: Management is not
confined to the administration of people only, but
it also manages work, processes and
operations, which makes it a multi-disciplinary
Group activity: An organization consists of
various members who have different needs,
expectations and beliefs. Every person joins the
organization with a different motive, but after
becoming a part of the organization they work
for achieving the same goal. It requires
supervision, teamwork and coordination, and in
this way, management comes into the picture.
Dynamic function: An organization exists in a
business environment that has various factors
like social, political, legal, technological and
economic. A slight change in any of these
factors will affect the organization’s growth and
performance. So, to overcome these changes
management formulates strategies and
implements them.
Intangible force: Management can neither be
seen nor touched but one can feel its existence,
in the way the organization functions.
Precisely, all the functions, activities and processes
of the organization are interconnected to one
another. And it is the task of the management to
bring them together in such a way that they help in
reaching the intended result.
Top-Level Management: This is the highest
level in the organizational hierarchy, which
includes Board of Directors and Chief Executives.
They are responsible for defining the objectives,
formulating plans, strategies and policies.
Middle-Level Management: It is the second
and most important level in the corporate ladder, as
it creates a link between the top and lower-level
management. It includes departmental and
division heads and managers who are responsible
for implementing and controlling plans and
strategies which are formulated by the top
Lower Level Management: Otherwise called as
functional or operational level management. It
includes first-line managers, foreman,
supervisors. As lower-level management directly
interacts with the workers, it plays a crucial role in
the organization because it helps in reducing
wastage and idle time of the workers, improving the
quality and quantity of output.
The three management levels form the management
hierarchy, that represents the position and rank of
executives and managers in the chart.
Taylor had identified serious flaws while observation of
operations at factories. Some of them were: i)
management lacked clear understanding of workermanagement responsibilities; ii) lack of effective
standards of work; iii) restricted output and failure to
design jobs properly; iv) unscientific decisions by
management; v) lack of proper studies about division of
work among departmentsi
F.W. TAYLOR’s 4 Principles of Scientific
The fundamental principles that Taylor
saw underlying the scientific approach to
management may be summarized as follows:
1. Replace rule-of-thumb work methods with
methods based on a scientific study of the tasks.
This rule focuses on increasing the efficiency of an
organisation through scientific analysis of work and not
with the ‘Rule of Thumb’ method. Taylor believed that
even a small activity like loading paper sheets into box
cars can be planned scientifically. This will save time and
also human energy. This decision should be based on
scientific analysis and cause and effect relationships
rather than ‘Rule of Thumb’ where the decision is taken
according to the manager’s personal judgments.
2. Scientifically select, train, and develop each
worker rather than passively leaving them to train
themselves. The effectiveness of a company also relies
on the abilities and skills of its employees. Thus,
implementing training, learning best practices and
technology, is the scientific approach to brush up the
employee skill. To assure that the training is given to the
right employee, the right steps should be taken at the time
of selection and recruiting candidates based on a scientific
3. ‘Harmony, not discord’ and believes in mutual
collaboration between workers and the management.
Managers and workers should have mutual cooperation &
confidence and a sense of goodwill. The main purpose is
to substitute internal competition with cooperation.
Cooperate with the workers to ensure that the
scientifically developed methods are being followed.
Taylor indicated and believed that the relationship
between the workers and management should be cordial
and complete harmony. Difference between the two will
never be beneficial to either side. Management and
workers should acknowledge and understand each other’s
importance. Taylor also suggested the mental revolution
for both management and workers to achieve total
4. Divide work nearly equally between managers
and workers, so that the managers apply scientific
management principles to planning the work, and
the workers actually perform the tasks.
Taylor concentrated more on productivity and
productivity based wages. He stressed on time and
motion study and other techniques for measuring
work. Apart from this, in Taylor’s work, there also
runs a strongly humanistic theme. He had an
idealist’s notion that the interests of workers,
managers, and owners should be harmonized.
Henri Fayol 14 Principles of Management
Henry Fayol, also known as the ‘father of modern
management theory’ gave a new perception of the concept
of management. He introduced a general theory that can
be applied to all levels of management and every
department. The Fayol theory is practised by the
managers to organize and regulate the internal activities
of an organization. He concentrated on accomplishing
managerial efficiency.
The fourteen principles of management created by Henri
Fayol are explained below.
1. Division of WorkHenri believed that segregating work in the workforce
amongst the worker will enhance the quality of the
product. Similarly, he also concluded that the division of
work improves the productivity, efficiency, accuracy and
speed of the workers. This principle is appropriate for
both the managerial as well as a technical work level.
2. Authority and ResponsibilityThese are the two key aspects of management. Authority
facilitates the management to work efficiently, and
responsibility makes them responsible for the work done
under their guidance or leadership.
3. DisciplineWithout discipline, nothing can be accomplished. It is the
core value for any project or any management. Good
performance and sensible interrelation make the
management job easy and comprehensive. Employees
good behaviour also helps them smoothly build and
progress in their professional careers.
4. Unity of CommandThis means an employee should have only one boss and
follow his command. If an employee has to follow more
than one boss, there begins a conflict of interest and can
create confusion.
5. Unity of DirectionWhoever is engaged in the same activity should have a
unified goal. This means all the person working in a
company should have one goal and motive which will
make the work easier and achieve the set goal easily.
6. Subordination of Individual InterestThis indicates a company should work unitedly towards
the interest of a company rather than personal interest. Be
subordinate to the purposes of an organization. This refers
to the whole chain of command in a company.
7. Remuneration-
This plays an important role in motivating the workers of
a company. Remuneration can be monetary or nonmonetary. However, it should be according to an
individual’s efforts they have made.
8. CentralizationIn any company, the management or any authority
responsible for the decision-making process should be
neutral. However, this depends on the size of an
organization. Henri Fayol stressed on the point that there
should be a balance between the hierarchy and division of
9. Scalar ChainFayol on this principle highlights that the hierarchy steps
should be from the top to the lowest. This is necessary so
that every employee knows their immediate senior also
they should be able to contact any, if needed.
10. OrderA company should maintain a well-defined work order to
have a favourable work culture. The positive atmosphere
in the workplace will boost more positive productivity.
11. EquityAll employees should be treated equally and respectfully.
It’s the responsibility of a manager that no employees
face discrimination.
12. Stability-
An employee delivers the best if they feel secure in their
job. It is the duty of the management to offer job security
to their employees.
13. InitiativeThe management should support and encourage the
employees to take initiatives in an organization. It will
help them to increase their interest and make then worth.
14. Esprit de CorpsIt is the responsibility of the management to motivate
their employees and be supportive of each other regularly.
Developing trust and mutual understanding will lead to a
positive outcome and work environment.
This 14 principles of management are used to manage an
organization and are beneficial for prediction, planning,
decision-making, organization and process management,
control and coordination.
Henry Fayol
F.W. Taylor
Henry Fayol, father of
modern management
contributed fourteen
management principles,
accomplishing managerial
F.W. Taylor, father of
scientific management
contributed four
management principles,
for enhancing overall
Top-level management
Low-level management
Top management based on
top downward approach.
Supervisory viewpoint and
bottom upward approach
Focused on delivering
managerial efficiency.
Increasing productivity of
Theory-based on
Personal experience
Observation and
Features of System Approach:
Following are the important features of
systems approach to management thought:
1. System approach considers the organisation as a
dynamic and inter-related set of parts. Each part
represents a department or a sub-system. Each
department has its sub-system. Continuous and
effective interaction of sub-systems helps to attain
goals of the larger system. Thus, every sub-system is
a system and has sub-systems which together make
an organisation a set of mutually dependent parts
and their sub-parts.
2. It considers the impact of both near and distant
future on organisational activities. Organisations
constantly respond to changes in the internal and
external environmental conditions. They also act as
market leaders in the dynamic, competitive
3. System approach integrates goals of different
parts of the organisation (sub-systems or
departments) with the organisation as a whole. It
also integrates goals of the organisation with goals of
the environment or society in which it operates.
Integration of goals maintains equilibrium or
balance and enables organisations to grow in the
dynamic environment.
4. It synthesizes knowledge of different fields of
study such as biology, sociology, psychology,
information systems, economics etc. As business
organisation deals with different components of
society, it makes best use of different fields of study
to improve interaction with its counterparts.
5. System approach enables organisations to frame
policies that promote business objectives and social
objectives. Business operates in the social system
and social values, culture, beliefs and ethics are
important constituents of business operations.
Evaluation of System Approach:
The system approach has the following
1. System approach provides a holistic view of the
organisations and emphasises on their adaptive
nature. It increases organisation’s adaptability to
environmental changes. The organisation is studied
as a whole and not through its parts. This enables it
to adapt to the needs of the environment. Decisions
are made keeping in mind organisation-environment
2. It analyses the system at different levels and interrelates and integrates it into a unified set of
direction. Starting from individual goals, it focuses
on overall organisational goals, synthesizes the two
and converges them into global economy.
3. System approach provides a framework for
effective interaction of parts of the organisation in a
specific arrangement for attainment of its goals. It
does not focus on one part of the organisation.
4. It considers the impact of environment on the
organisation and vice versa. Interaction of external
environment with the internal environment is the
most significant contribution of systems theory.
System approach, thus, analyses the organisation as
an adaptive and dynamic entity.
5. System approach synthesizes the classical and
behavioural theories into a broader framework to
solve managerial problems.
Limitations of System Approach:
1. Critics of this theory claim this as a theoretical
approach to management. The way an organisation
actually works and solves problems (by applying
different techniques and methods) has no appeal in
the theory.
2. Relationship amongst parts of the organisation is
emphasised upon but the exact nature of interdependence is not defined.
3. Exact relationship between internal and external
environment of the organisation is also not defined.
For example, it specifies that change in economic
policies necessitates change in internal policies of
the organisation but what changes are required to
match the changes in economic environment is not
talked about.
4. System approach fails to provide uniform
approach to management. Management practices
change with changes in environmental variables. No
standard set of principles apply to all types of
It has added nothing new to the study of
management. Even before this approach was
introduced, managerial decisions were taken
keeping in mind the environmental variables. No
specific decision-making techniques are offered to
deal with specific problems.
5. It fails to provide concepts that apply to all types
of organisations. The small organisations are less
adaptive to environmental variables than large
organisations. The theory assumes that most of the
organisations are big, complex and open systems. It,
thus, fails to provide a unified theory.