![Principles and Practice of Management Unit 1: Introduction Notes [Gauhati University BCom 2nd Semester NEP FYUGP]](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjRUCMVIr2ISZPgjYIs2OFSst095po0QuKt1Mn2rmEiV6SJkVdp70Wwgtpsx3fg8BjGGbRHsMZuQlr-f1LPwNMTo9n_A9PNMXUK7uqc6t3EITOAWKECp3NV6JgP5fnu5AV3Jc2JsYL4hgci1t9GU6WrREa57r6zsftkYzyESBQFuSSDUiTYHsk1ORF1l71Y/s1120/Gauhati%20Principles%20and%20Practice%20of%20Management%20Notes.jpg "Principles and Practice of Management Unit 1: Introduction Notes [Gauhati University BCom 2nd Semester NEP FYUGP]")
UNIT 1: INTRODUCTION
1. Define management and explain its traditional as well as modern concept?
Ans: Different authors have given different definitions of Management. They are discussed below: According to Marrie and Douglas. "Management is the process by which a co-operative group directs actions of others toward common goals."
According to Marrie Parker Follet, "Management is the art of getting things done through others." According to F. W. Taylor, "Management is knowing exactly what you want men to do and then seeing that they do it in the best and cheapest way."
According to Henry Fayol, "To manage is to forecast, to plan, to organise, to command, to co ordinate and to control." According to Harold Koontz, "Management is the art of getting things done through and with other people in formally organised groups."
Thus, Management can be defined as, the process of getting things done with the aim of achieving organizational goals effectively and efficiently. In simple words management refers to a process of "Minimum Input and Maximum Output".
Concepts of Management: Concept of management has been changing from era to era and also depends of the related organisation. But broadly it can be categorised under two concepts:
Traditional Concept: Traditional Concept of Management emphasis on the art of getting things done through others. (Here the quality of work done and the time period was not considered)
Modern Concept: Modern Concept of Management is defined as the process or refers to the basic steps to get the things done with the aim of achieving organizational goals effectively and efficiently (effectiveness refers to achievement of task in time and efficiently implies optimum utilisation of resources).
2. Explain the importance/need/significance of Management.
Or
What is the importance of management in modern business enterprise/small business.
Ans: The following are the importance/need/significance of Management:
(i) Management Helps Achieving Group Goals: Management integrates the objective of individual along with organizational goal.
(ii) Management Helps in Achieving Personal Objectives: Through motivation and leadership, management helps in achieving the personal objectives.
(iii) Management Helps in the Development of Society: Management provides good quality products and services, creates employment, generate new technology in that sense it helps in the development of the society.
(iv) Management Helps in Business Growth: Management improves how well people work together,
(v) leading to more profits. These profits can be used to expand and improve the business. Management Helps in producing Quality Products: Good management ensures that products are made well and at low cost. It keeps an eye on production to reduce waste and encourages workers to care about quality.
(vi) Management Creates a Dynamic Organization: Organization has to survive in dynamic environment thus manager keep changes in the organization to match environmental changes.
(vii) Management Increases Efficiency: Management increases productivity through better planning, organizing, directing the activities of the organization.
(viii) Management Helps in Employee Development: Management focuses on training employees to improve their skills. This boosts their confidence and makes them better at their jobs. (ix) Management Helps in Risk Reduction: Management tries to control or lessen risks that a business
faces. It keeps an eye on changes in policies and takes action to minimize problems.
(x) Management Helps in Innovation: Management encourages new ideas and ways of working. This helps the organization stay competitive.
(xi) Management Helps in Increasing Profits: Management finds ways to increase profits by either selling more or spending less. It looks for ways to cut costs without sacrificing quality.
(xii) Management Helps in Effective Leadership: Management develops good leaders within the organization who can take on more responsibility.
(xiii) Management Helps in Customer Satisfaction: Management focuses on making sure customers are happy with the products and services offered.
(xiv) Management Helps in Regular Supply: Management ensures that goods and services are available when customers need them.
3. Difference between effectiveness and efficiency. Or Define effectiveness and efficiency.
Ans: The following are the differences between effectiveness and efficiency:
| Aspect | Effectiveness | Efficiency |
|---|---|---|
| Meaning | Achieving predetermined goals on time. | Achieving goals at minimum cost. |
| Focus | End result or accomplishment of goals. | Maximum output with minimum resources. |
| Objective | Completing the given task successfully. | Utilizing resources optimally to complete the task. |
| Manager’s Role | A manager is effective if they accomplish the task. | A manager is efficient if they complete the task with minimal input. |
| Nature | Multidimensional concept. | Unidimensional concept. |
4. What do you mean by coordination? Discuss the importance of coordination in management. Or "Coordination is an essence of management" ----Comment
Ans: Co-ordination: Apart from the functions of management some thinkers consider coordination as a separate function of management. However coordination is an all pervasive functions of management. ordination is not only a function but it is the essence of management. Definitions:
"To co-ordinate is to harmonise all the activities of a person in order to facilitatie its working and its success." Henry Fayol
"Co-ordination is the orderly arrangement of groups' efforts and to provide unity of action in the pursuit of a common purpose."- James D. Mooney
"Co-ordination is a part of all phases of administration and that it is not a separate and distinct activity."- Newman
Meaning of coordination: Coordination means bringing together the activities and resources of an organization and bringing harmony in them. It is regarded as the essence of management because each of the managerial function contributes to co-ordination.
Co-ordination as an essence of management:
1. Co-ordination through planning: Co-ordination starts with the planning function, planning starts with setting objectives and objectives provide the reason for co-ordination.
2. Coordination through organizing: Coordination is the first principle of organization. The success of organizing function depends on effective co-ordination.
3. Co-ordination through staffing: co-ordination may be ensured with the need of different departments of organization while performing staffing function.
4. Coordination through directing: In directing function coordination is required between the superior and the subordinate and while giving orders, instructions, guidelines and suggestions etc. to the employees.
5. Coordination through controlling: By detecting the deviations, taking corrective actions the managers co-ordinate the activities with object plan policies and programmes in an organization.
5. Explain the nature or characteristics of co-ordination.
Ans: Characteristics of co-ordination:
i. Part of every function: Co-ordination is not a separate function but is inherent in every function. The activities of every function need coordination to complete them.
ii. Coordination is a process: As a Process coordination involves the number of efforts to ensure harmony at every level for achieving common organizational objective.
iii. Coordination is responsibility of every manager: Every manager in an organization has to perform coordination function for achieving the organizational goal.
iv. Co-ordination is a continuous activity: Co-ordination is not an activity which is to be undertaken at certain point of time rather it is carried out continuously.
V. Co-ordination involves co-operation: Synchronization of activities of various functions can be achieved only with the co-operation of employees.
6. What are the Types and Techniques of Coordination?
Ans: Types of Coordination:
1. External Coordination: This type of coordination involves working with outside entities like shareholders, customers, dealers, competitors, and government agencies. It's crucial for an organization's survival and growth as it ensures harmony with the external environment.
2. Internal Coordination: Internal coordination happens within the organization and can be classified into three types:
(a) Vertical Coordination: This involves coordination between different levels of the organization. For example, ensuring that a marketing manager and a sales supervisor work together effectively to achieve marketing goals.
(b) Horizontal Coordination: Here, coordination happens between departments, positions, or individuals at the same level within the organization. For instance, coordination between production, purchase, materials, and research departments is necessary for smooth operations. This can be achieved through regular meetings and cooperation among team members.
(c) Diagonal Coordination: In large organizations with dispersed working arrangements, diagonal coordination becomes crucial. This coordination involves ensuring harmony between different zonal offices, branches, and regional offices. Decentralization and delegation, along with a shared vision, help achieve this coordination, ensuring unified action towards organizational objectives. It prevents bottlenecks, confusion, and conflicts within the organization by synchronizing group efforts effectively.
Techniques for Effective Coordination: Simplified Explanation
1. Clear Goals: Make sure that everyone understands the organization's goals clearly. When everyone knows what they're working towards, it helps unite efforts towards achieving those goals.
2. Simple Organization Structure: Keep the organization's structure simple and clearly defined. This means outlining everyone's roles and responsibilities clearly to avoid confusion and conflicts. Having clear job descriptions, organizational charts, and work manuals helps in smooth coordination.
3. Effective Communication: Good communication is key to understanding each other's roles and responsibilities. Regular communication helps resolve conflicts and differences, and ensures everyone knows their place in the organization.
4. Strong Leadership: Effective leadership plays a vital role in coordinating efforts. A good leader motivates individuals and encourages them to work together towards common goals. If a leader is unclear about their tasks, it becomes challenging to guide or coordinate activities effectively.
5. Proper Supervision: Supervisors play a crucial role in coordinating work at the execution level. They monitor the work of their subordinates, adjust workloads, and provide guidance when needed. Supervisors keep the organization's objectives in mind and direct their subordinates accordingly.
6. Cooperation: Cooperation among employees is essential for coordination. Encourage a culture of mutual help and harmonious relations among employees. Management should foster formal and informal communication and establish committees for making important decisions. Group decisions encourage everyone to cooperate in implementing them.
7. Discuss the Principles and Process of Coordination.
Ans: Principles of Coordination:
1. Direct Contact Principle: Coordination is best achieved through direct communication and interpersonal relationships among individuals. Direct contact helps in resolving conflicts and misunderstandings, fostering mutual goodwill, and ensuring agreement on methods and actions.
2. Early Beginning Principle: Coordination is most effective when started in the early stages of planning and policy-making. Trying to coordinate during execution can be challenging and may lead to disastrous results. Discussing policies with relevant parties before execution increases the likelihood of successful coordination.
3. Reciprocal Relationship Principle: All factors in a situation are interrelated, creating a reciprocal relationship. The work of one person depends on others, and vice versa. For example, if A works with B, who in turn works with C and D, the relationship among all four is reciprocal. Coordination becomes crucial to ensure smooth functioning when factors like materials, finance, sales, and production are interdependent.
4. Continuity Principle: Coordination is an ongoing process that needs to happen continuously. It's not just about resolving conflicts when they arise but ensuring smooth and uninterrupted functioning.
Management should make constant efforts to achieve coordination rather than leaving it to chance. In a business, there's a constant need for coordination to ensure operations run smoothly. Process of Coordination:
1. Planning: Coordination starts with planning. When different functions and policies are planned together, coordination happens naturally. For example, if the production manager plans with input from other managers like purchasing, personnel, finance, and sales, coordination occurs at the planning stage. This ensures that everyone's concerns are addressed, and decisions are made collectively.
2. Organization: Coordination is built into the organization's structure. When managers organize tasks and responsibilities, they consider coordination to avoid delays and confusion. Defining authority, responsibility, and relationships among different roles leads to effective coordination.
3. Directing: Managers coordinate work through directing their subordinates. By giving directions, guidelines, and instructions, managers ensure that everyone works towards achieving organizational objectives. Encouraging group decision-making and fostering an environment where everyone's opinions are valued makes coordination easier.
4. Controlling: Controlling involves ensuring that everyone's efforts are directed towards the main goals. Managers monitor performance and take corrective action when necessary to keep work aligned with organizational objectives. This function helps synchronize efforts and facilitates coordination by evaluating performance and making adjustments.
5. Staffing: Proper staffing also contributes to coordination. Managers should consider the nature of jobs and the type of people needed to perform them effectively. Hiring the right people and providing appropriate training ensures that employees can cooperate and coordinate their efforts.
6. Communication: Effective communication is crucial for coordination. Regular flow of information among individuals ensures they have the necessary information for coordination. Personal contact is the most effective form of communication, but other methods like reports, procedures, and bulletins can also be used. Utilizing data processing tools facilitates quick communication, ensuring that employees have the information they need to coordinate their work effectively.
8. What are the stages of development of Management thoughts? Or What are the theories of Or Management?
Or
Write in brief about the contribution of Elton Mayo to Neo-Classical theory. Write about the Elton Mayo and the Hawthorne Studies/theories. Give a comparative analysis of Taylor and Fayol's contribution.
Or
Discuss about classical new classical and modern management modern theory of Management.
Distinguish between classical and modern Management Theory.
Or
Distinguish between classical and new classical management theories.
Ans: Classification of Management Theories: Simplified Overview
1. Pre-Scientific Management Theory (up to 19th century):
2. Classical Theory:
(a) Scientific Management of F.W. Taylor (b) Bureaucratic Model of Max Weber
3. Neo-Classical Theory:
(a) Human Relations Approach
(b) Behavioural Management Approach
4. Modern Management Theory:
(a) Quantitative Approach
(b) Systems Approach
(c) Contingency Approach
1. Pre-Scientific Management Theories
a. Robert Owen (1771-1858): Robert Owen, an entrepreneur and social reformer, made significant contributions to management theory during the late 18th and early 19th centuries. He believed that the work environment greatly impacted worker performance and advocated for social reforms and worker welfare. Owen emphasized the importance of investing in human resources and improving working conditions, reducing working hours, and providing necessities to workers. He is often regarded as the father of modern personnel management and his ideas laid the groundwork for the behavioral approach to management.
b. Charles Babbage (1792-1871): Charles Babbage, a British mathematician, advocated for the use of science and mathematics in improving manufacturing operations. In his essay "The Economy of Machinery and Manufacturers," Babbage criticized traditional methods of work and urged for the use of science to make decisions based on accurate knowledge. He emphasized work measurement, specialization, and the use of time and motion studies to improve machine performance. Babbage's work laid the foundation for the scientific study of management and pioneered operations research and industrial engineering techniques.
c. James Watt Jr. and Matthew Boulton (1796-1848): James Watt Jr. and Matthew Boulton, sons of a renowned steam engine inventor, introduced several management techniques while managing the Soho Engineering Foundry in Britain. Their techniques included market research, production planning, standardization of products, and calculating costs and profits. They also implemented welfare schemes for personnel, including sickness benefits administered by elected employee committees, and developed programs for executive development. These techniques were considered innovative for their time and contributed to the advancement of management practices.
2. Classical Theory/Schools of Management
The study of management as a distinct field began in the latter part of the 19th century, although managerial techniques had been applied in various contexts earlier. The classical approaches to management can be categorized as follows:
(a) Scientific Management (Detailed explanation in later pages)
(b) Administrative Management (Detailed explanation in later pages)
(c) Bureaucratic Management (Detailed explanation in later pages)
3. Neo-Classical Theory (1930-1950): Neo-Classical management theory emerged following the findings of the Hawthorne experiments and received contributions from behavioral and social scientists like Elton Mayo, M.P. Follett, Chester Barnard, A.H. Maslow, Rensis Likert, and Douglas McGregor. Essence of Neo-Classical Theory:
(a) Social Perspective: Organizations should be understood socially, not just economically or technically. (b) Group Behavior: Understanding group behavior through clinical methods is essential.
Main Propositions:
i. Organization as a Social System: It recognizes organizations as social entities.
ii. Existence of Informal Organization: It acknowledges informal groups within formal structures.
iii. Diverse Motivational Patterns: It recognizes varied motivations among individuals.
iv. Importance of Communication: It emphasizes the role of communication in conveying emotions and sentiments.
V. Teamwork for Cooperation: It highlights the necessity of teamwork for fostering cooperation. (a) Human Relations Approach: The human relations movement focuses on factors that boost worker performance. Beyond just monetary rewards, improvements in working conditions, shorter work hours, and better social relations among workers contribute to increased productivity. This approach places significance on valuing human beings within organizations.
Elton Mayo and the Hawthorne Studies (experiment): Elton Mayo, an Australian-born scholar, made significant contributions to the human relations approach. He joined Harvard University's staff and later became a professor at the Harvard Graduate School of Business Studies. Mayo emphasized the importance of understanding people in organizations. His notable works include "The Human Problems of an Industrial Civilization" and "The Social Problems of an Industrial Civilization." Mayo's groundbreaking research, commonly known as the Hawthorne studies, began in 1927 at the Hawthorne plant of the Western Electric Company near Chicago. These studies aimed to understand how different situations affected worker efficiency.
Key Observations from the Hawthorne Studies (merits)
i. Workers were not merely seen as 'cogs in the machinery.'
ii.Employee morale, both individually and in groups, significantly impacts productivity.
iii. Management should adopt a more people-oriented approach, recognizing workers as social beings. Social factors influence worker productivity and attitudes.
vi. Informal work groups and leaders within these groups play crucial roles in influencing worker behavior.
v. Effective communication between management and workers is essential. Importance and Contribution:
i. Recognition of the relationship between working conditions and productivity. Acknowledgment of the impact of non-economic rewards on worker efficiency.
ii. Preference for democratic leadership styles over production-oriented ones.
iii.Emphasis on the workplace as a social organization that provides satisfaction to workers.
vi. Importance of understanding worker psychology and involving workers in decision-making processes. Respect for workers' dignity and honor.
Limitations:
i. Overemphasis on the human factor, potentially neglecting other important factors.
ii. Workers form social groups but not necessarily familial bonds within organizations.
iii. All employees may not find non-economic incentives satisfying.
iv. Assumption that everyone is content within informal groups may not hold true universally.
(b) Behavioural Sciences Approach: The behavioural sciences approach represents a further refinement of the human relations movement, encompassing a broader range of interpersonal roles and responsibilities within organizations. It emphasizes the application of methods and findings from general and social psychology and sociology to understand organizational behavior. Contributors to this approach are Abraham Maslow, Douglas McGregor, Rensis Likert, and Chester Bernard, each of whom made significant contributions to management theory:
i. Abraham Maslow: Maslow, a renowned psychologist, introduced the Need Hierarchy Theory in 1943. He proposed that people have a range of needs that motivate their work. These needs can be categorized and arranged into a hierarchy, with basic needs at the bottom and higher-order needs at the top. According to Maslow, humans start satisfying their needs step by step, and a satisfied need does not continue to motivate behavior. (Explained in detail in Later Questions)
ii. Douglas McGregor: McGregor, a social psychologist, developed Theory X and Theory Y. Theory X represents the traditional view of human nature, assuming that workers are lazy, unambitious, and dislike work. In contrast, Theory Y suggests that people are not inherently lazy but may become so due to organizational treatment. Theory Y points that work is natural to people, who exercise self-control and seek responsibility under favorable conditions.
iii. Rensis Likert: Likert conducted extensive research on leadership and management, advocating for participative management in decision-making. He believed that traditional, job-oriented supervision led to low productivity and morale. Hiss work emphasized the importance of participative decision- making and the role of leadership in fostering productivity.
iv. Chester I. Bernard: Bernard, a prominent figure in management, highlighted the sociological aspects of organization theory. He stressed the significance of leadership and communication in organizations. He divided organizations into formal and informal structures, emphasizing the importance of informal organization within the formal framework.
4. Modern Management Theory (1950 Onwards): Modern management theory builds upon classical and Neo-Classical approaches, incorporating advancements in mathematical, statistical, and engineering knowledge. It emphasizes socio-psychological aspects of human behavior. Three
Approaches:
a) Quantitative Approach: It is also known as Operations Research, it applies mathematical and statistical tools to complex managerial decision-making, such as linear programming, game theory, and probability. Computers help in finding solutions to intricate management problems, although human judgment remains crucial.
b) System Approach: It views organizations as dynamic systems influenced by their environments. It recognizes interrelationships and interdependencies among components, considering organizations as open and adaptive systems. This approach includes disciplines like Operations Research, Management Information Systems (MIS), behavioral sciences, and industrial dynamics.
c) Contingency Approach: It highlights the importance of situational factors in designing organizational structures and managerial styles. Factors like environment, technology, people, and organizational size affect the effectiveness of management and organization. There is no universal best way to manage; instead, organizations must adapt their structures and styles to fit specific circumstances.
These approaches collectively enrich modern management theory, integrating diverse perspectives the complexities of organizational management effectively.
9. What are the differences between Classical and Neo- Classical Management Theories.
Ans: Differences between Classical and Neo-Classical Theories are.
Differences between Classical and Neo-Classical Management Theories
10. What are the differences between Classical and Modern Management Theories.
Ans:
Differences between Classical and Modern Management Theories
11. What do you mean by Scientific Management? Discuss the Scientific POM developed by F. W. Taylor and its different techniques?
Ans: According to F. W. Taylor, "Scientific Management means knowing exactly what you want men to do and seeing that they do it in the cheapest way."
Frederick Winslow Taylor (or F W Taylor) was born in 1856 in Philadelphia near Pennsylvania, USA in a middle class family. He was employed in Midvale Steel Company from 1878 to 1889. He began his career as a labourer and finally at the age of 28 he became the Chief Engineer of the company. Later he Joined Bethlehem Steel Company and became the General Manager. He left the practice in 1901 and devoted all his time to the cause of scientific management until his death in 1915. In 1911 Taylor published his famous work "Principles and Methods of Scientific Management". In that book Taylor suggested fundamental principles of scientific management. He is also known as father of "Scientific Management."
1. Science, not rule of thumb: Taylor emphasized on the use of scientific approaches instead of unscientific approaches. It means an organization should use scientific techniques rather than incited on scientific techniques to solve any problem.
2. Harmony, not discord: According to Taylor item should be made to create harmony rather than creating discords among the organization, i.e. creating conflict among the employees.
3. Cooperation, not individualism: This principle is an extension of the principle of 'harmony, not discord'. Taking constructive suggestions of workers should be adopted and they should not go on strike as both management and workers a responsibility and perform together.
4. Development of each and every person to his or her greatest efficiency and prosperity: According to the principal all workers must be trained to all possible extent in order to get the maximum of their level. This will not only help the organization to attain its goal but also help the employees working in the organization building their confidence.
5. Maximum output in place of restricted output: This principle implies continuous increase in output and productivity in instead of restricted output by management or by workers. Scientific techniques of Taylor
FW Taylor evolved some techniques / elements of scientific management which are explained below:
i. Functional foremanship: Here Taylor suggested the division of factory into two departments namely planning department and production department. He suggested it for men for looking after the smooth functioning of the factory operations they are:
Under planning department
route clerk
instruction card clerk
time and cost clerk
disciplinarian
Under production department
gang Boss
speed Boss
repair Boss
Inspector Boss
ii. Separation of planning and doing or standardisation and simplification of work
Before Taylor scientific management workers themselves use to decide how they have to work and what tools and instruments will be required for that. Taylor Emphasis that the planning functioning should be separated from execution and given to a specialist for better results.
iii. Fatigue study: This technique of scientific management is conducted to find out the frequency of the rest intervals, the duration of rest intervals and the number of rest intervals. This scientific approach of Management helps the managers to save the time wastage by labourers.
iv. Method study: This technique aims to identify the most efficient method of performing a job, minimizing production costs and maximizing resource utilization. Instead of relying on arbitrary rules, Taylor advocated for trying out various methods and selecting the one that brings the greatest benefits at the lowest cost.
v. Time study: The meaning/objective of time study is to determine several key factors, including the standard time required for a job, setting targets for workers, determining the required workforce, and categorizing workers into efficient and inefficient categories.
vi. Motion study: Motion study involves observing workers as they perform their tasks and recording their movements, such as how often they get up from their place or bend down. By analyzing these movements and distinguishing between productive and unproductive actions, strategies can be developed to minimize or eliminate unproductive movements.
vii. Job analysis: This principle is undertaken to find out one of the best way of performing the job. The best way of performing the job is one which requires the least movements, less time and less cost.
viii. Work study: It ensures maximum production at minimum cost and getting best contribution from every factor:
Work study= Time study + Motion study + Method study + Fatigue study.
ii. Scientific selection, Placement and training of workers: According to Taylor's scientific management principles selection of workers should be on scientific basis and their education, experience, physical strength etc. should be equally considered the following test should be done before selecting a worker: Aptitude Test
Interest test
Intelligence test
Trade test
Physical test
iii. Differential piece rate system: The scientific technique of Differential piece rate system insists on paying different rates of wages for efficient and inefficient employees. It means workers of higher efficiency should be paid higher wages and workers of lower efficiency should be paid low wages.
iv. Mental Revolution: Scientific management depends upon the cooperation between management and the workers for this corporation. There should be a mental change in both the parties from conflict to cooperation and industrial climate should be created in such a manner where the workers should use to think management as their well-wishers.
12. What are the advantages and disadvantages of scientific management?
Ans: The following are the advantages and disadvantages of scientific management
Advantages of scientific management
1. Increase in production and productivity: Scientific management help the organization to grow and increase its production and productivity because of increased efficiency of its employees.
2. Reduction in cost of production: Scientific management in business avoiding all types of wastage and losses which leads to reduction in cost of production.
3. Better quality products: Standardization which is an essential element of scientific management ensures better quality product at lower cost by minimizing the cost of production.
4. Improvement in workers' efficiency and earn more: Scientific selection of workers helps the enterprise took place right man in the right job, which help the workers to improve the working efficiency, produce more output and earn more wages.
Disadvantage of scientific management
1. Expensive: Introduction of scientific management is quite expensive for a newly formed organization.
2. Complex and time consuming: Reorganization of work force and working style is very complex and time consuming.
3. Monopoly among the workers: The workers are supposed to do routine work like automatic machines in this principle which creates problems of monopoly among the workers.
4. Not use of workers' initiative and creativity: Scientific management separates planning from performance. The workers are to carry out instructions given to them so workers are not given any opportunity to take initiative and show their creativity.
5. Problem of unemployment: Under scientific management, management has to take decision to reduce employees which create unemployment and surplus workers are likely to be thrown out of the organization.
13. Write in brief about Administrative Management Theory of Henry Fayol? What are the 14 principles.
Ans: Administrative Management: [Henry Fayol (1841-1925)]
Henry Fayol, often referred to as the father of administrative management, began his career as a junior engineer in a coal mine company in France before rising to the position of general manager in 1880. His book "General and Industrial Management," published in 1916, is considered a classic in management literature. Fayol's contributions can be categorized into three main areas: classification of business activities, functions of management, and principles of management.
1. Classification of Business Activities: Fayol categorized all activities of a business enterprise into six groups, highlighting managerial activity as the most significant. These six groups are
(i) Technical activities (production).
(ii) Commercial activities (buying, selling and exchange).
(iii) Financial activities (search for and optimum use of capital).
(iv) Security activities (protection of property and persons).
(v) Accounting activities (including statistics)
(vi) Managerial.
2. Functions of Managers:
Fayol identified five key functions of management:
Planning: Anticipating and preparing for the future.
Organizing: Providing resources necessary for operations.
Coordinating: Harmonizing and unifying all activities.
Commanding: Leading personnel effectively.
Controlling: Ensuring adherence to plans.
3. Principles of Management: Fourteen principles of management developed by Henri Fayol
1. Division of work: When a work is divided among the employees in an organisation, by doing the same work for long period, they (employees) become specialized and achieve greater efficiency which increases the productivity and reduces the unnecessary wastage in an organization.
2. Authority and responsibility: Authority and responsibility are the two sides of a single coin known as 'management'. Acceptance of authority implies acceptance of responsibility to perform a work. Authority flows downwards, whereas responsibility flows upwards.
3. Discipline: Discipline means obedience proper conduct in relation to other members of the organization and complying with the rules and regulations of the organization. Fayol insisted on the concept of promotion and demotion of employees on the basis of their performance.
4. Unity of command: This principle means every employee should have only one boss and employees should receive orders from him (boss) only because if he has to receive orders from different sources or more than one boss the situations will be confusing for him.
5. Unity of direction: This principle insists on "one head one plan". The members of an organization should have a single plan which should be the organization's plan. If every member will be targeting their own plan no one will achieve their plan. So, it is better to help one another to achieve the organizational goal in order to attain personal goal.
6. Subordination of individual interest to general interest: This principle is an extension of the principle unity of direction. This is also known as principle of cooperation .Here each should work for all and all for each.
7. Fair remuneration: In practical world 'money works as the biggest motivator'. Remuneration to an employee should be fair and satisfactory to both organizations and employees.
8. Centralization: The degree of centralization and decentralization of authority varies according to the needs of the situation. Top level management should decide the extent to which the authority should be centralized or decentralized.
9. Scalar chain: Scalar chain forms line of authority between the superior and the subordinates from the highest to the lowest ranks which must be followed strictly. Every information must pass through every key of the each and no skipping of any one key should be allowed.
Gang Plank: (Gangplank is not a principle but a part of scalar chain) In case of emergency an urgent information shortcut is allowed in this chain known as "gangplank". It permits direct communication between the employees working at same level in the organization.
10. Principle of order: This principle does not mean command but it refers to orderly arrangement of men material that is fit for player for everything and everyone in the organization.
11. Principle of equity: Equity is the combination of kindness and Justice in management system. Every manager should apply the principles of equity while dealing with his subordinates.
12. Stability of tenure: An employee needs time to adjust himself in a new environment. So, organization should try to minimize employee turnover.
13. Principle of Initiative: Employees in an organization should be encouraged to develop and carry out their plan for improvement. They should be motivated to work independently.
14. Espirit de Corps. This principle means union is strength. This principle emphasizes the need for teamwork and the importance of effective communication in order to obtain it.
Importance:
i. Fayol emphasized the universality of management principles and the importance of clear authority positions.
ii. He argued that managers can be trained and are not solely born with inherent abilities. iii. Fayol stressed the need for specialization in work and advocated for clarity in authority positions within organizations.
Criticism:
i. Some scholars criticized Fayol's theory for being based solely on his personal experiences and lacking empirical evidence.
ii. Certain principles proposed by Fayol were deemed contradictory, such as the unity of command conflicting with the division of work.
iii. Critics argued that Fayol's theory did not adequately address the concerns and welfare of workers.
14. Differentiate between Taylorism and Fayolism.
Or
Differentiate between Taylor's scientific management and Fayol's administrative management.
Differentiate between scientific/modern management and administrative/Traditional/ General management.
Ans: The differences between Scientific Management and Traditional/ General Management are:
Differences between Taylor’s Scientific Management and Fayol’s Traditional Management
15. Explain the Bureaucratic Management. What are its features? Also explain the merits and demerits.
Ans: Bureaucratic Management (Max Weber): Max Weber, a German sociologist, introduced the concept bureaucratic management, emphasizing the authority-responsibility relationship within organizations.
of Three Types of Authority Structures: Weber identified three types of authority structures:
(a) Charismatic: Authority based on exceptional innate qualities of a leader.
(b) Traditional: Authority derived from precedent or tradition, often passed down through heredity.
(c) Bureaucratic: Authority derived from clearly defined rules, procedures, and roles within an organization.
Features of Bureaucratic Management:
i. Clear Hierarchy of Authority: A structured hierarchy exists, with clear lines of authority and responsibility between superiors and subordinates.
ii. Division of Work: Work is divided based on specialization, with individuals assigned tasks according to their expertise.
iii. Separation of Personal and Official Matters: Distinction between personal and official matters is emphasized, with official matters taking precedence.
iv. System of Rules and Regulations: Strict rules and regulations govern organizational activities, providing a framework for decision-making and operations.
v. Competence-Based Promotions: Promotions are based on competence and merit, encouraging employees to enhance their performance and efficiency.
Webber illustrated his Bureaucratic model as such :
.png "Bureaucratic model")
Evaluation: Weber's bureaucratic model is suitable for organizations with stable environments and predictable rates of change, commonly found in large businesses and government departments. However, it suffers from rigidity, impersonality, and excessive control costs.
Benefits of Bureaucracy:
i. Consistency: Clearly defined rules and procedures ensure consistency in employee behavior and management processes.
ii. Clarity in Roles: Duties and responsibilities are clearly defined, minimizing overlap and conflicts.
iii. Merit-Based Selection and Promotion: Recruitment and promotions are based on merit, optimizing human resource utilization.
iv. Expertise Development: Division of labor allows employees to specialize, improving their performance.
V. Continuity: The organization remains functional even when personnel change, as roles are clearly defined.
Disadvantages of Bureaucracy:
i. Red Tape: Excessive bureaucracy leads to paperwork and delays.
ii. Lack of Belongingness: Employees may not feel a sense of belonging to the organization.
iii. Inhibited Initiative: Over-reliance on rules stifles employee initiative and growth.
iv. Resistance to Change: Employees may resist new techniques or changes to the system.Despite its drawbacks, bureaucratic management remains valuable in large organizations for its organizational clarity and structure.
16. Discuss the Maslow's Need Hierarchy Theory of Motivation.
Ans: Abraham H Maslow, an eminent U.S psychologist developed a theory of motivation. Basic assumptions
1. Peoples behavior is based on their needs.
2. Peoples needs are in hierarchical order.
3. A satisfied need can no longer motivate a person, only next higher level need can motivate him.
4. A person moves to the next higher level of the hierarchy only when the lower need is satisfied. Maslow's theory suggest that there exists a hierarchy of five human needs.
Pyramid of Self-actualisation 10% Need Satisfaction 40% Egoistic stain.com Human 50% Social Needs 70% Safety 85% Physiological Fig. Need Heirarchy model of Maslow.
1. Physiological needs(Basic needs): These needs are most basic in the hierarchy and corresponds to primary needs. Basic salary can satisfy these needs.
Eg: Hunger, shelter, sleep etc. need for food
2. Safety/security Needs: These include need for protection from physical and emotional harm. Job security and pension plan may satisfy these needs.
3. Affiliation/Belonging Needs(Social Needs): These refer to need for affection sense of belonging, acceptance and friendship. Cordial relations with colleagues can satisfy these needs.
4. Esteem Needs: These include self-respect, recognition, status and autonomy. Job title may satisfy these needs.
5. Self Actualization Needs: It means the desire to become what one is capable of becoming. These are highest level needs. Growth and achievement of goals can satisfy these needs.
17. Discuss the various Managerial Functions.
Ans: In understanding the functions of management, it's crucial to differentiate between operational tasks like sales, manufacturing, and accounting, which vary from one enterprise to another, and the overarching managerial functions common to all organizations. Managerial functions can be broadly categorized into two types:
a. Operative Functions: These include specific operational areas such as production, marketing, finance, and personnel management. Each area has its own set of tasks and responsibilities.
b. Managerial Functions: These are the fundamental functions performed by managers across all areas of business. Regardless of the specific operational focus, managers are responsible for certain common functions.
Luther Gulick coined the functions of Management into a word "POSDCORB" indicating the following functions of Management:
P=Planning; O=Organizing; S=Staffing; D=Directing; C=Coordinating; R=Reporting B=Budgeting Harold Koontz and O'Donnel classified management functions into five parts namely Planning, Organizing, Staffing, Directing and Controlling.
Planning: Planning is the first and foremost function of management which refers to deciding in advance what to do, how to do, when to do and who is to do it. It builds the gap between where we are in today and where we want to be in future.
Organizing: Organizing refers to organize the activities and establishing an organizational structure to execute the plan. The process of organizing consists division of activities, grouping of activities, assigning duties and responsibilities and delegating authority or power.
Staffing: Human resource is the biggest asset of an organization. Organization can only succeed if it locate right person on right job. Staffing is the process of recruiting, selecting, appointing and assigning duties to employees.
Directing: Directing is the process of giving instruction to the employees by motivating them, supervising their activities and creating leadership qualities by communicating with them.
Controlling: Controlling and planning are simultaneously performed. It is the end function of management consisting of the following four steps
a. Setting the standard of performance
b. Comparing actual performance with the standard performance
c. Finding out the causes of deviation
d. Taking corrective action
Controlling can be of both Negative and Positive in meaning.
18. What are the various functional areas of management OR operating functions of manager?
Ans: Operative Functions or Functional Areas of Management: Operative functions, also known as functional areas of management, includes key aspects of organizational operations that are essential for achieving business objectives. These functional areas include Financial Management, Production Management, Marketing Management, and Personnel/Human Resource Management.
i. Financial Management: Financial management entails the planning, organizing, directing, and controlling of financial activities within a business enterprise. It involves the strategic procurement and wise utilization of funds to achieve organizational goals. Financial managers are responsible for various activities such as estimating capital requirements, managing working capital, evaluating investment proposals, deciding on funding sources, negotiating financing arrangements, administering income, and providing financial information for management control.
ii. Production Management: Production management focuses on decision-making related to production processes to ensure the efficient production of goods or services according to specifications, demand, and at minimum cost. It encompasses functions such as designing production systems, production planning and control, and the execution of production plans to meet targets effectively.
iii. Marketing Management: Marketing management involves planning, organizing, directing, and controlling activities related to the marketing of products and services. This includes functions such as product planning, market research, advertising, sales promotion, and distribution management. Marketing managers are responsible for creating and developing markets, attracting new customers, and meeting customer requirements to achieve organizational objectives.
iv. Personnel/Human Resource Management: Personnel or Human Resource Management encompasses planning, organizing, directing, and controlling activities related to the procurement, development, compensation, integration, and maintenance of personnel within an organization. The primary objective is to contribute to organizational, individual, and societal goals. Functions of personnel management include employment (recruitment, selection, placement), training and development, compensation management, integration (reconciling individual and organizational interests), working conditions, and welfare services provision.
Each of these functional areas plays a critical role in the overall management of an organization, and effective coordination and integration of these functions are essential for achieving organizational success.
19. What are the functions of Personnel/Human Resource Manager ?
Ans: The functions of a Personnel/Human Resource Manager encompass various aspects of managing the workforce within an organization. These functions include:
i. Employment: This involves the recruitment, selection, and placement of personnel. It encompasses identifying sources of labor supply and designing methods to select suitable candidates for different job roles.
ii. Training and Development: Every enterprise requires specialized skills for various roles, and it's the responsibility of HR managers to ensure that employees receive adequate training to perform their tasks effectively. This function also involves developing existing skills and capabilities to align with organizational objectives.
iii. Compensation: HR managers are tasked with developing a fair and equitable compensation system that rewards employees based on their contributions to organizational goals. This includes determining salaries, bonuses, benefits, and other forms of remuneration.
iv. Integration: Integration involves aligning the interests of individual employees with those of the organization. HR managers play a crucial role in fostering a positive organizational culture and ensuring that employees are engaged and committed to achieving company objectives.
V. Working Conditions: HR managers are responsible for maintaining safe and conducive working environments for employees. This includes implementing health and safety measures to protect employees from workplace hazards and ensuring that working conditions contribute to employee morale and well-being.
vi. Welfare: The HR department provides various welfare services aimed at enhancing the quality of work life for employees. This may include amenities such as cafeteria facilities, restrooms, group insurance plans, recreation facilities, and other employee assistance programs.
20. Discuss in brief Mintberz management role model.
Ans: Henry Mintzberg's management role model is a framework that outlines the various roles and responsibilities of managers within organizations. Mintzberg, a renowned management expert and academic, developed this model to simplify the complexities of managerial positions and to provide guidance on how managers can effectively carry out their duties. The model categorizes managerial roles into three main groups: Interpersonal Roles, Informational Roles, and Decisional Roles.
I. INTERPERSONAL ROLES: These roles focus on the social aspect of management and involve interactions with people both inside and outside the organization. Mintzberg identifies three Important interpersonal roles:
(a) Figurehead: Managers act as symbolic leaders and representatives of the organization, performing tasks related to social or ceremonial matters.
(b) Leader: Managers provide guidance, motivation, and direction to their team members to ensure that organizational objectives are met effectively.
(c) Liaison: Managers establish and maintain relationships with internal and external stakeholders to facilitate smooth communication and collaboration.
II. INFORMATIONAL ROLES: These roles revolve around the management of information within the organization. Managers are responsible for gathering, analyzing, and disseminating information to support decision-making processes. Mintzberg identifies three key informational roles: (a) Monitor: Managers collect and analyze information from various sources to stay informed about internal operations and external developments that may impact the organization.
(b) Disseminator: Managers share important information and insights with relevant individuals or groups within the organization to ensure that everyone is well-informed.
(c) Spokesperson: Managers represent the organization externally and communicate its goals, policies, and achievements to stakeholders, such as clients, investors, or the public.
DECISIONAL ROLES: These roles involve making decisions and taking action to address organizational challenges and opportunities. Mintzberg identifies four key decisional roles: (a) Entrepreneur: Managers identify new opportunities and develop innovative solutions to drive organizational growth and success.
(b) Disturbance Handler: Managers address unexpected challenges or conflicts that arise within the organization and take action to resolve them promptly.
(c) Resource Allocator: Managers allocate resources, such as budget, personnel, and equipment, to different departments or projects based on organizational priorities and objectives.
(d) Negotiator: Managers engage in negotiations with internal or external parties to reach agreements that benefit the organization and its stakeholders.
Thus, Mintzberg's management role model provides a comprehensive framework for understanding the multifaceted nature of managerial roles and emphasizes the importance of effective communication, decision-making, and interpersonal skills in managerial effectiveness.
21. What is meant by Indian Ethos for Management in India? Write its features and Principles?
Ans: Indian ethos for management is deeply rooted in the rich cultural and philosophical heritage of India. It consist of a set of values, principles, and beliefs derived from ancient scriptures and texts like the Ramayana, Mahabharata, Bhagavad Gita, Vedas, Upanishads, as well as other religious and spiritual teachings.
Features of Indian ethos for management:
(a) Cosmic or Pure Consciousness: Indian ethos emphasizes the existence of an innate inner self, often referred to as the divine element or pure awareness. This cosmic consciousness serves as the foundation for coordination, collaboration, and the pursuit of the common good. It encourages individuals to delve deeper into self-awareness and understand the interconnectedness of all beings.
(b) Whole Man Approach: Indian philosophy adopts a holistic perspective that integrates spiritual and worldly aspects of life. It views individuals as multidimensional beings and emphasizes the interconnectedness of the cosmos, creation, and human existence. This holistic approach is reflected in ancient texts such as the Gita, Upanishads, and Puranas.
(c) Human Divinity: Indian ethos regards human life as a sacred journey towards self-realization and spiritual fulfillment. It recognizes the inherent divinity within each individual and emphasizes the pursuit of excellence and self-improvement.
(d) Maintaining Balance and Equilibrium: Indian thought emphasizes the importance of maintaining harmony and balance in all aspects of life. It advocates for a balanced approach to various dichotomies such as need and lack of need, religious and secular principles, and subjective and materialistic realities.
(e) Balance between Personal and Work Life: Indian culture promotes the idea of harmony and reciprocity, believing that good behavior towards others will be reciprocated. It teaches individuals how to effectively manage and balance their personal and professional lives, emphasizing the importance of integrity, ethics, and compassion in all interactions.
(f) Focus on Duties and Responsibilities: Indian ethos places a strong emphasis on fulfilling one's duties and responsibilities towards oneself, society, and the universe. This principle is deeply ingrained in Indian scriptures and literature, including the Bhagavad Gita and Upanishads, which emphasize the importance of righteous action and selfless service.
Principles of Indian Ethos for Management:
(a) Holistic Approach: Indian ethos for management advocates for a holistic perspective that integrates the divine, human self, and the cosmos. It emphasizes the spiritual principles of unity, oneness, and non-dualism, considering every particle in the universe as interconnected. This holistic approach forms the foundation for management practices that prioritize the interconnectedness of all beings and the pursuit of harmony.
(b) Presence of Divine Spirit: According to Indian ethos, every human being possesses a divine spirit, which is a spark of the divine residing in their heart. This divine spirit imbues individuals with immense power and potential for self-development. By aligning their efforts with the divine, individuals can achieve seemingly unattainable objectives through self-realization and self-actualization.
(c) Based on Cooperation: Cooperation is emphasized as a potent tool for teamwork and success in Indian ethos. Unlike the competitive notions of "struggle for existence" and "survival of the fittest," Indian ethos promotes collaboration as the royal way for humans. It recognizes the power of human reasoning and judgment in fostering cooperation and collective achievement.
(d) Excellence Through Motivation and Development: Indian ethos promotes excellence in work through self-motivation and self-development, as outlined in the philosophy of "Karma Yoga" in the Bhagavad- Gita. Leaders are encouraged to make choices without being ruled by emotions, maintaining composure under all circumstances. Success is attributed to divine grace, and leaders are urged to remain humble and detached from the outcomes of their actions.
(e) Prioritizing Inner Resources and Awakening the Third Eye: Indian ethos emphasizes the primacy of inner resources over external ones. While external resources such as money and material possessions are important, inner resources such as wisdom, insight, and foresight are considered more potent. The cultivation of inner resources, including spiritual awakening and the activation of the Third Eye, is essential for achieving success and fulfilling one's divine potential.
22. Explain basic principles of value oriented Holistic management.
Ans: Value-Oriented Holistic Management is a comprehensive approach that acknowledges the interconnectedness of all elements within an organization and integrates core values into every facet of management. It adopts a holistic perspective that considers ethical, social, environmental, and economic factors alongside mere profit-making endeavors.
Basic Principles:
(a) Value-Based Decisions: This management style prioritizes values when making decisions. Rather than solely focusing on profitability or efficiency, a set of fundamental principles guides decision-making to ensure moral, equitable, and beneficial outcomes for all stakeholders. For example, a company might opt for a slightly more expensive supplier known for sustainable practices, prioritizing environmental responsibility over short-term financial gains.
(b) Stakeholder Inclusivity: Unlike traditional management, which often prioritizes shareholders, value- oriented holistic management emphasizes the importance of all stakeholders, including the environment, local communities, employees, and customers. Decision-making processes may involve input from various stakeholders, such as local communities, when establishing facilities in their areas.
(c) Holistic Viewpoint: Taking a holistic approach means considering the organization as a unified whole rather than as separate silos. Every decision made in one area or department impacts other areas of the organization, as well as the external world and society at large. For instance, decisions made by the production department regarding raw materials affect supply chain management, marketing strategies, consumer perception, environmental sustainability, and societal welfare.
(d) Emphasis on Long-Term Sustainability: Value-oriented holistic management prioritizes the long-term sustainability of the organization over short-term gains. This involves making decisions that ensure the company's viability and positive impact over time. For example, investing in renewable energy sources promotes long-term energy sustainability and reduces the organization's carbon footprint.
(e) Personal and Organizational Growth: This management approach emphasizes the growth and development of individuals alongside organizational growth. Personal development, ethical training, and spiritual growth are valued alongside professional training. Companies may offer workshops on ethics, meditation sessions, or opportunities for personal reflection and growth.
(f) Ethical and Social Responsibility: Organizations are viewed not merely as profit-driven entities but as entities with a responsibility to society and the environment. They are expected to give back, uphold ethical standards, and make positive contributions to society and the environment. Initiatives may include community development projects, educational programs, or environmental conservation efforts.
Thus, we can conclude that Value-Oriented Holistic Management ensures that every decision and action aligns with the organization's core values. This approach promotes sustainable and responsible growth, economic success, and positive contributions to society and the environment.
23. Write about the ethics/ethos of Indian Management including Bhagavad Gita and Upanishads, Kautilya, Budha, Jainism, Vivekananda and Mahatma Gandhi.
Ans:
Ethics of Bhagavad Gita and Upanishads: The teachings of the Bhagavad Gita and Upanishads provide profound insights into ethics and moral conduct, guiding individuals not just in their personal lives but also in their business endeavors.
a. Every person has immense potential, energy, and talent: The Bhagavad Gita emphasizes the divine nature of every individual, highlighting the limitless potential inherent in each person. This principle encourages individuals to recognize and harness their inherent abilities to excel in all aspects of life, including business.
b. Perform without attachment: The Bhagavad Gita advocates performing one's duties without attachment to the outcomes. This principle encourages individuals to focus on the task at hand, striving for excellence and perfection in their work without being swayed by desires for personal gain or recognition.
c. Emphasis on sacrifice and overall welfare of mankind: Sacrifice and selflessness are core values promoted in the Bhagavad Gita and Upanishads. Business endeavors should be conducted with a focus on the well-being of all stakeholders, including employees, customers, and society at large. Cooperation and mutual help are emphasized as means to achieve the highest human welfare.
d. Character as the real power and wealth: The teachings of the Bhagavad Gita underscore the importance of character and integrity in business and life. A manager with enriched qualities of mind and heart can effectively lead with honesty, compassion, and ethical conduct.
e. Work is worship: The Bhagavad Gita teaches that work performed with dedication, sincerity, and without ego can be a form of worship. Individuals are encouraged to serve others selflessly, recognizing the inherent dignity and value in every task and every individual's contribution. f. Distribution of duties based on merit and aptitude: Fairness and meritocracy are emphasized in the allocation of responsibilities and tasks within organizations. Employees should be assigned roles that align with their skills, abilities, and interests, fostering a harmonious and productive work environment.
g. Control of emotions and fostering interpersonal relations: Effective management involves controlling one's emotions and fostering positive relationships based on equality, respect, and effective communication. Good interpersonal relations are considered invaluable assets in business and life.
h. Self-management and continuous improvement: The Bhagavad Gita encourages self-reflection, self- discipline, and continuous self-improvement. Managers are urged to analyze their strengths and weaknesses, cultivate virtuous qualities, and strive for personal and professional growth.
i. Utilization of wealth for the greater good: Wealth and resources should be utilized not just for personal enjoyment but for the benefit of society as a whole. Business leaders are encouraged to engage in acts of charity, philanthropy, and social responsibility, contributing to the welfare of communities and the less fortunate.
j. Avoidance of greed and pursuit of righteous objectives: Rather than solely focusing on profit maximization, business policies should prioritize the maintenance of societal order and the common good. Greed should be eschewed in favor of ethical conduct and responsible business practices.
Additional points:
i. The Bhagavad Gita and Upanishads advocate a holistic approach to life, integrating spiritual principles with practical conduct in business and society.
ii.These ancient texts emphasize the importance of individual responsibility, moral integrity, and adherence to principles of truth, non-violence, and compassion.
iii. The teachings of the Bhagavad Gita and Upanishads provide timeless wisdom that continues to inspire ethical conduct and righteous behavior in modern-day business practices.
II. Ethics of Kautilya (Chanakya): Kautilya, also known as Chanakya, offers insights into statecraft and governance, which can be applied to ethical business practices.
a. Active, efficient, and prudent management: Kautilya emphasizes the need for active, efficient, and prudent management of resources and affairs. Strong bureaucratic structures and well-trained officials are essential for effective governance and administration.
b. Prevention of oppression and exploitation: Traders and officials should be prevented from oppressing the people or engaging in exploitative practices. Strict regulations and penalties are recommended to deter unethical behavior and ensure fair treatment of individuals.
c. Maintenance of integrity and accountability: Proper maintenance of accounts, transparency, and accountability are vital for good governance. High officials are responsible for rendering accurate accounts of their activities, and dishonesty or corruption should be met with severe penalties.
d. Ethical principles in trade and commerce: Kautilya advocates for ethical principles in trade and commerce, such as fair pricing, availability of goods for the public benefit, and the prohibition of fraudulent practices. Traders are urged to prioritize the welfare of society over personal gain.
e. Objective and impartial administration of justice: Justice should be administered objectively and impartially, without favoritism or bias. Punishments should be fair and proportionate, reflecting the severity of the offense and the principles of dharma.
Additional points:
i. Kautilya's teachings highlight the importance of integrity, transparency, and accountability in governance and business affairs.
ii. His pragmatic approach to statecraft emphasizes the need for ethical conduct and adherence to principles of justice, fairness, and public welfare.
III. Ethical Views of Buddha: The ethical teachings of Buddha emphasize compassion, non-violence, and the pursuit of spiritual enlightenment.
a. Morality of Ahimsa (Non-violence): Buddha's philosophy revolves around the principle of Ahimsa, or non-violence, which extends to all living beings. This principle encourages individuals to refrain from harming others physically, verbally, or mentally.
b. Practice of compassion and goodwill: Buddha teaches the importance of compassion, goodwill, and empathy towards all beings. Individuals are urged to overcome anger and hatred through acts of kindness, forgiveness, and understanding.
c. Endurance of suffering and patience: Buddha teaches the virtue of patience and the endurance of suffering with equanimity. Rather than retaliating with anger or violence, individuals are encouraged to respond with patience, tolerance, and inner strength.
d. The Four Noble Truths and Eightfold Path: Buddha's ethical teachings are encapsulated in the Four Noble Truths and the Eightfold Path. These principles provide a framework for living a virtuous and meaningful life, guiding individuals towards the cessation of suffering and the attainment of enlightenment.
Additional points:
i. Buddha's ethical teachings emphasize the cultivation of inner virtues such as compassion, wisdom, and mindfulness.
ii. The practice of mindfulness and meditation is central to Buddha's teachings, promoting self- awareness, mental clarity, and spiritual growth.
iii. Ethics of Jainism: Jainism advocates principles of non-violence, truthfulness, and self-discipline as the foundation of ethical conduct.
a. Five Great Vows: Jainism prescribes five great vows, including non-violence, truthfulness, non-stealing, celibacy, and non-possession. These vows guide individuals in leading a life of ethical integrity and spiritual purity.
b. Cultivation of virtues and restraint: Jainism emphasizes the cultivation of virtues such as forgiveness, humility, purity, and self-restraint. Restraint of body, speech, and mind is considered essential for purifying the soul and attaining spiritual liberation.
c. Principles of non-violence and compassion: Non-violence (Ahimsa) is a fundamental principle of Jain ethics, extending to all forms of life. Compassion and empathy towards all living beings are encouraged, fostering a sense of interconnectedness and reverence for life.
Additional points:
i. Jainism promotes a lifestyle of simplicity, non-attachment, and non-possession, encouraging individuals to minimize their material desires and cultivate inner peace.
ii. The ethical teachings of Jainism emphasize the importance of self-discipline, moral purity, and respect for all forms of life.
iii. Ethical Views of Swami Vivekananda: Swami Vivekananda's teachings emphasize the principles of love, service, and self-realization as the foundation of ethical living.
a. Universal love and service: Vivekananda advocates for the practice of universal love and service as the essence of spirituality. Love is seen as the underlying principle of all religions, transcending boundaries of caste, creed, and nationality.
b. Self-realization and selflessness: Self-realization, or the realization of one's divine nature, is the ultimate goal of human life according to Vivekananda. True spirituality involves selflessness, humility, and the recognition of the divinity within oneself and others.
c. Ethics of work and duty: Vivekananda teaches that work should be performed as an offering to the divine, without attachment to the fruits of action. Duty (Dharma) is emphasized as the guiding principle of life, leading individuals towards self-fulfillment and spiritual growth.
Additional points:
i. Vivekananda's ethical teachings emphasize the importance of individual empowerment, self- confidence, and self-reliance.
ii. He encourages individuals to cultivate positive qualities such as courage, perseverance, and resilience in facing life's challenges.
iii. Ethics of Mahatma Gandhi: Mahatma Gandhi's ethical principles revolve around truth, non-violence, and selfless service to humanity.
a. Satyagraha and Ahimsa: Gandhi's philosophy of Satyagraha (truth-force) and Ahimsa (non-violence) forms the cornerstone of his ethical teachings. Non-violent resistance and moral courage are seen as powerful tools for social and political transformation.
b. Sarvodaya and Trusteeship: Gandhi advocates for the concept of Sarvodaya, or the welfare of all. He believes in the equitable distribution of resources and the principle of trusteeship, wherein wealth is held in trust for the benefit of society as a whole.
c. Simple living and high thinking: Gandhi promotes a lifestyle of simplicity, emphasizing the importance of non-possession, frugality, and self-restraint. He encourages individuals to lead a life of voluntary poverty and self-discipline.
Additional points:
i. Gandhi's ethical teachings emphasize the values of honesty, integrity, and moral courage in all aspects of life.
ii. He advocates for ethical governance, emphasizing the importance of transparency, accountability, and public service in politics and administration.
In conclusion, the ethical teachings of various spiritual and philosophical traditions offer valuable insights into the principles of morality, integrity, and righteousness in business and life. By integrating these timeless principles into their practices, individuals and organizations can foster a culture of ethical conduct, social responsibility, and sustainable development.
Seven blunders according to Gandhi.
Mahatma Gandhi identified what he called the "Seven Blunders" or "Seven Social Sins," which he believed were the root causes of societal problems and moral decay. These blunders highlight areas where individuals and societies often stray from ethical principles and contribute to the perpetuation of injustice, inequality, and suffering. Here they are:
1. Wealth without Work: Gandhi criticized the accumulation of wealth without honest labor or productive work. He saw the pursuit of wealth through exploitative or unjust means as a moral failing that led to societal inequality and injustice. According to Gandhi, true wealth comes from meaningful work and honest effort, rather than exploitation or greed.
2. Pleasure without Conscience: Gandhi cautioned against seeking pleasure or gratification without consideration for ethical principles or moral consequences. Engaging in activities solely for personal enjoyment, without regard for their impact on others or the greater good, was seen as a form of selfishness and moral neglect. Pleasure, according to Gandhi, should be derived from virtuous actions and a clear conscience.
3. Knowledge without Character: Gandhi emphasized the importance of character development alongside the pursuit of knowledge. He believed that knowledge without moral integrity or ethical values could be dangerous and harmful. Education should not only focus on intellectual growth but also on cultivating virtues such as honesty, compassion, and integrity.
4. Commerce without Morality: Gandhi condemned unethical business practices and commercial activities that prioritized profit over ethical considerations. Engaging in commerce without a sense of morality or social responsibility, such as price gouging, fraud, or exploitation, was seen as detrimental to society and contrary to the principles of truth and fairness.
5. Science without Humanity: Gandhi warned against the misuse of scientific knowledge and technological advancements for destructive purposes or without regard for human welfare. Science should be guided by ethical considerations and used to alleviate human suffering and promote the well-being of all beings. Using science without humanity can lead to harmful consequences and moral dilemmas.
6. Worship without Sacrifice: Gandhi believed that true worship should be accompanied by selfless service and sacrifice for the greater good. Merely performing religious rituals or ceremonies without a commitment to ethical living and social justice was considered hypocritical. Worship should inspire individuals to serve others and make sacrifices for the welfare of society.
7. Politics without Principles: Gandhi criticized the pursuit of political power or influence without adherence to moral principles or ethical values. Engaging in politics without a commitment to truth, non-violence, and integrity can lead to corruption, oppression, and injustice. Politics should be guided by principles of justice, compassion, and service to the people.
Gandhi's "Seven Blunders" serve as a reminder of the importance of ethical conduct, moral integrity, and social responsibility in all aspects of life. By avoiding these pitfalls and striving to uphold ethical principles, individuals and societies can work towards creating a more just, compassionate, and harmonious world.
24. Discuss the contribution of Peter F. Drucker to Modern Management.
Ans: Peter F. Drucker, often hailed as the "father of modern management," revolutionized the field with his profound insights and innovative ideas. His contributions have had a lasting impact on how organizations approach leadership, strategy, and organizational effectiveness.
1. Nature of Management: Drucker advocated for creative and innovative management, opposing bureaucratic approaches. He emphasized that management should focus on achieving results, viewing it as a liberal profession.
2. Management Functions: According to Drucker, management involves a series of tasks, including setting objectives, increasing productivity, managing social impacts, and motivating employees. He identified key areas where clear objectives are essential, such as innovation, productivity, market standing, and social responsibility.
3. Organizational Structure: Drucker emphasized three characteristics of an effective organizational structure: performance orientation, minimal managerial levels, and a focus on training future leaders. He advocated for decentralization to empower employees and foster innovation at all levels of the organization.
4. Management by Objectives (MBO): Drucker introduced the concept of MBO in his 1954 book, emphasizing the importance of aligning employee objectives with organizational goals. MBO promotes collaboration, accountability, and continuous improvement by involving employees in setting and monitoring objectives.
5. Federalism: Drucker proposed a concept of federalism, combining centralized control with decentralized decision-making. He believed that decentralization fosters employee engagement and enables organizations to adapt more effectively to change.
6. Knowledge Worker: Drucker foresaw the rise of knowledge workers and their importance in the 21st- century economy. He highlighted the value of expertise and information management, advocating for leadership practices that support knowledge workers.
7. Organizational Change: Drucker recognized the rapid pace of technological development and its impact on society. He emphasized the need for dynamic organizations capable of embracing change and adapting to evolving circumstances.
8. SMART Method: Drucker introduced the SMART method for setting objectives, emphasizing specificity, measurability, assignability, realism, and time-bound nature of goals. This method provides a framework for ensuring the validity and effectiveness of organizational objectives.
9. Mission and Customer Focus: Drucker stressed the importance of defining a clear mission statement and understanding customer needs and values. He encouraged organizations to measure their results and develop strategic plans aligned with their mission and customer priorities.
Overall, Peter F. Drucker's contributions to modern management encompass a comprehensive understanding of organizational dynamics, leadership principles, and strategic planning. His timeless insights continue to guide leaders and managers in navigating the complexities of today's business environment with clarity and effectiveness.
25. Discuss the contribution of Michael Porter to Modern Management.
Ans: Michael Porter's contributions to the modern school of management are multifaceted and influential, encompassing strategic frameworks, economic theories, and practical insights that have reshaped the way organizations approach competition and value creation.
1. Five Forces Model: Porter's Five Forces model provides a structured approach for analyzing industry competitiveness by evaluating the bargaining power of suppliers and buyers, the threat of new entrants, the threat of substitute products or services, and the intensity of competitive rivalry. This model, outlined in his seminal book "Competitive Strategy" (1980), remains a cornerstone of strategic analysis, guiding organizations in identifying opportunities and threats in their external environment.
2. Value Chain Analysis: Porter's value chain analysis breaks down the various activities involved in delivering a product or service into primary and support activities. By identifying areas of cost optimization, differentiation, and value creation, organizations can streamline processes and enhance efficiency, ultimately delivering greater value to customers. This concept was introduced in his work "Competitive
Advantage" (1985), offering a systematic approach to understanding and managing internal operations.
3. Competitive Advantage of Nations: In "The Competitive Advantage of Nations" (1990), Porter extends his analysis beyond the firm level to explore factors influencing national competitiveness. He argues that strict environmental regulations can drive innovation and enhance the competitiveness of firms on a global scale. Porter's framework categorizes industries based on their dynamics and suggests that firms must prioritize innovation and adaptability to sustain international success.
4. Expectancy Theory and Employee Motivation: Porter's expectancy theory sheds light on factors influencing employee motivation and performance within organizations. By aligning rewards with effort and outcomes, organizations can foster a supportive work environment where employees are motivated to contribute to organizational goals. This theory underscores the importance of employee engagement and productivity, contributing to organizational effectiveness.
5. Strategic Partnerships and Innovation: Porter emphasizes the importance of strategic partnerships, innovation, and customer-centricity in today's dynamic business environment. By fostering collaborative relationships, embracing innovation, and prioritizing customer needs, organizations can sustain a competitive advantage and drive long-term growth.
Overall, Michael Porter's contributions to modern management encompass a comprehensive understanding of strategic analysis, organizational dynamics, and competitive advantage. His theories and frameworks continue to guide organizations in navigating complexities and achieving sustainable success in today's evolving marketplace.
-00000-
Must Visit: Gauhati University FYUGP BCom 2nd Sem Main Page
![Principles and Practice of Management Unit 1: Introduction Notes [Gauhati University BCom 2nd Semester NEP FYUGP]](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjRUCMVIr2ISZPgjYIs2OFSst095po0QuKt1Mn2rmEiV6SJkVdp70Wwgtpsx3fg8BjGGbRHsMZuQlr-f1LPwNMTo9n_A9PNMXUK7uqc6t3EITOAWKECp3NV6JgP5fnu5AV3Jc2JsYL4hgci1t9GU6WrREa57r6zsftkYzyESBQFuSSDUiTYHsk1ORF1l71Y/w200-h200-p-k-no-nu/Gauhati%20Principles%20and%20Practice%20of%20Management%20Notes.jpg)