UNIT-1 Management Science
UNIT-1 Management Science
Management Science
Concept of management
the objective of any enterprise accomplished through the efforts of its personnel.
Wherever and whenever objectives are to be achieved through organized and co-
operative endeavor, management becomes essential for directing and unifying the
group efforts towards a common purpose. As human aims and beliefs are mostly
Furthermore, the greatest and the most comprehensive of our social organizations,
viz., the Government of all types’ needs management as others require, perhaps more
Management is the only activating element of any enterprise for getting things done
combines the productive but passive resources into a fruitful organization. Not only
does it adapt itself to existing opportunities, restrictions and pressures, but it exercises
a positive influence as well as to make the future events favorable for the enterprise
people and their work, directs the operation an controls the performance, and thus
result that is bigger than the sum total of efforts put in by the group. Management
adds real plus value to the operation of any enterprise by enlisting as little extra value
out of each person. It provides new ideas, imaginations and visions to the group
working an integrates its efforts in such a manner as to account for better results. It
Management strives to secure the maximum result by the use of minimum resources.
Management in all business areas and human organization activity is the act of
organization (a group of one or more people or entities) or effort for the purpose of
human action, including design, to facilitate the production of useful outcomes from a
system.
Planning: Deciding what needs to happen in the future (today, next week, next
month, next year, over the next 5 years, etc.) and generating plans for action.
Staffing: Job Analyzing, recruitment, and hiring individuals for appropriate jobs.
Leading/Directing: Determining what needs to be done in a situation and getting
people to do it.
Function of management:-
Planning
The first component of managing is planning. A manager must determine what the
organizations goals are and how to achieve those goals. Much of this information will
come directly from the vision and mission statement for the company. Setting
objectives for the goal and following up on the execution of the plan are two critical
components of the planning function. For example, a manager of a new local
restaurant will need to have a marketing plan, a hiring plan and a sales plan.
Organizing
Managers are responsible for organization of the company and this includes
organizing people and resources. Knowing how many employees are needed for
particular shifts can be critical to the success of a company. If those employees do not
have the necessary resources to complete their jobs, organization has not occurred.
Without an organized workplace, employees will see a manager as unprepared and
may lose respect for that particular manager’s supervisory techniques.
Leading
Managing and leading are not the same activity. A manager manages employees; this
person makes sure that tasks are completed on time and policies are followed.
Employees typically follow managers because he or she is the supervisor and in-
charge of employees. Employees see a leader as someone that motivates them and
guides them to help meet the firm’s goals. In an ideal situation, the manager also
serves as the leader. Managers who want to lead effectively need to discover what
motivates their employees and inspire them to reach the company objectives.
CONTROLLING
Controlling involves ensuring that performance does not deviate from standards.
comparing actual performance against standards, and taking corrective action when
necessary. Performance standards are often stated in monetary terms such as revenue,
costs, or profits, but may also be stated in other terms, such as units produced, number
The managerial function of controlling should not be confused with control in the
behavioral or manipulative sense. This function does not imply that managers should
their subordinates. Instead, this function of management concerns the manager's role
are consistent with and contributing toward the accomplishment of organizational and
departmental objectives.
Effective controlling requires the existence of plans, since planning provides the
traditional control techniques are the budget and the performance audit. Although
compliance with company policies, and many other activities within the organization.
The management functions of planning, organizing, leading, and controlling are
widely considered to be the best means of describing the manager's job as well as the
Although there have been tremendous changes in the environment faced by managers
and the tools used by managers to perform their roles, managers still perform these
essential functions
Classical organization theory was the traditional theory and remains to be the
foundation upon which other schools of organization theory have built. Therefore
many subsequent analyses presume an understanding of it.
Influenced by the industrial revolution in the 1700s and related to the professions of
mechanical and industrial engineering, the principles were developed under
fundamental assumptions as follows:
We must also keep in mind that the beliefs of early management theorists, including
Henri Fayol, about how organizations worked or should worked were a direct
reflection of social values of that period. The evolution of this theory was in the era
which workers were viewed as parts of machine, not as individuals. Besides, the
equipment was expensive and hardly affordable. As a consequence, the use of workers
with their own tools to replace power-driven machines was prevailing.
Henri Fayol, a French executive engineer and a Managing Director of a large French
local mining firm, developed the first comprehensive theory of management,
Administration Industrielle et Generale (published in France in 1916), was almost
ignored in the United States until English translation, General and industrial
Management, appeared in 1949. Since then, his contributions have been widely
recognized as a foundation and significant piece of work.
Fayol proposed that management was a common activity to all human beings who
involve in organization. His principles consist of the elements as follows:
4. Unity of Command. Each subordinate should receive orders from one superior.
5. Unity of Direction. Organizational activities that have the same objective should
be guided by one manager, using one plan.
9. Scalar Chain. The line of authority from top to the lowest ranks of management.
10. Order. Materials and people should be in right place at right time.
13. Initiative. The power of thinking out, proposing and executing. Management
should encourage employees to originate and carry out plans. This urging tends to
boost levels of effort.
14. Esprit de Corps. Fostering team spirit is the way to construct harmony and unity
among employees.
Throughout the world, wherever business enterprises are carried on, there are to be
found three basic forms in which the ownership of these enterprises is held.
1. The individual owning outright his own business and usually managing it himself
3. The impersonal owner - the corporation - standing between the business and the
individuals who have various kinds and degrees of claims upon the business.
These three basic forms are combined and recombined in many different ways under
the' laws and customs of the various commercial countries, but analysis always
One of the most widely mentioned theories of motivation is the hierarchy of needs
theory put forth by psychologist Abraham Maslow. Maslow saw human needs in the
form of a hierarchy, ascending from the lowest to the highest, and he concluded that
when one set of needs is satisfied, this kind of need ceases to be a motivator.
These are important needs for sustaining the human life. Food, water, warmth, shelter,
sleep, medicine and education are the basic physiological needs which fall in the
primary list of need satisfaction. Maslow was of an opinion that until these needs
were satisfied to a degree to maintain life, no other motivating factors can work.
These are the needs to be free of physical danger and of the fear of losing a job,
property, food or shelter. It also includes protection against any emotional harm.
Since people are social beings, they need to belong and be accepted by others. People
try to satisfy their need for affection, acceptance and friendship.
According to Maslow, once people begin to satisfy their need to belong, they tend to
want to be held in esteem both by themselves and by others. This kind of need
produces such satisfaction as power, prestige status and self-confidence. It includes
both internal esteem factors like self-respect, autonomy and achievements and
external esteem factors such as states, recognition and attention.
Maslow regards this as the highest need in his hierarchy. It is the drive to become
what one is capable of becoming, it includes growth, achieving one’s potential and
self-fulfillment. It is to maximize one’s potential and to accomplish something.
As each of these needs are substantially satisfied, the next need becomes dominant.
From the standpoint of motivation, the theory would say that although no need is ever
fully gratified, a substantially satisfied need no longer motivates. So if you want to
motivate someone, you need to understand what level of the hierarchy that person is
on and focus on satisfying those needs or needs above that level.
Maslow’s need theory has received wide recognition, particularly among practicing
managers. This can be attributed to the theory’s intuitive logic and ease of
understanding. However, research does not validate this theory. Maslow provided no
empirical evidence and other several studies that sought to validate the theory found
no support for it.
Leadership Styles
Leaders carry out their roles in a wide variety of styles, e.g., autocratic, democratic,
participatory, laissez-faire (hands off), etc. Often, the leadership style depends on the
situation, including the life cycle of the organization. The key styles, includes
autocratic, laissez-faire and democratic style
The Autocrat
from team-members and requires continual pressure and direction from the leader in
order to get things done. Generally, an authoritarian approach is not a good way to get
There are, however, some instances where an autocratic style of leadership may not be
inappropriate. Some situations may call for urgent action, and in these cases an
autocratic style of leadership may be best. In addition, most people are familiar with
autocratic leadership and therefore have less trouble adopting that style. Furthermore,
The Laissez-Faire manager exercises little control over his group, leaving them to sort
out their roles and tackle their work, without participating in this process himself. In
general, this approach leaves the team floundering with little direction or motivation.
Again, there are situations where the Laissez-Faire approach can be effective. The
motivated and skilled people, who have produced excellent work in the past. Once a
leader has established that his team is confident, capable and motivated, it is often
best to step back and let them get on with the task, since interfering can generate
resentment and detract from their effectiveness. By handing over ownership, a leader
The Democrat
The democratic leader makes decisions by consulting his team, whilst still
maintaining control of the group. The democratic leader allows his team to decide
how the task will be tackled and who will perform which task.
A good democratic leader encourages participation and delegates wisely, but never
loses sight of the fact that he bears the crucial responsibility of leadership. He values
group discussion and input from his team and can be seen as drawing from a pool of
his team members' strong points in order to obtain the best performance from his
team. He motivates his team by empowering them to direct themselves, and guides
However, the democrat can also be seen as being so unsure of himself and his
relationship with his sub-ordinates that everything is a matter for group discussion
and decision. Clearly, this type of "leader" is not really leading at all.
2. Task structure - Extent to which the task is structured and defined, with clear goals
and procedures.
High levels of these three factors give the most favorable situation, low levels, the
least favourable. Relationship-motivated leaders are most effective in moderately
favourable situations. Task-motivated leaders are most effective at either end of the
scale.Fiedler suggests that it may be easier for leaders to change their situation to
achieve effectiveness, rather than change their leadership style.
Path Goal Theory :Path Goal Theory This theory was developed by Robert House.
Here the leader provides the necessary support and guidance to his followers and help
them achieve organizational goals. Leader defines the individual(or groups) goals and
help them achieve them. As per the theory – Leaders are accepted by the subordinates
when They find that the satisfaction of their needs depend upon their effective
performance. They are provided with guidance ,support, and rewards needed for
effective performance. Robert House suggested 4 types of leadership by this model
Directive leadership Supportive leadership Participative leadership Achievement-
oriented leadership.
Managerial Grid
A conceptual framework combining a concern for task accomplishment and a concern
for people was created by Robert Blake and Jane Mouton called the Managerial Grid.-
represented along the horizontal dimension, while the vertical dimension measures an
individual’s concern for people, again using a nine-point scale. Blake and Mouton
assume that the most effective leadership style is a 9,9 style, demonstrating both
developed by Blake and Mouton, individuals can place themselves in one of the
Five different grid positions are typically used to illustrate different leadership styles.
A 9,1 leader is primarily concerned with production and task accomplishment and
unconcerned about people; This person wants-to get the job - -done and wants a
schedule followed at all costs. The 1,9 leadership style reflects a maximum concern
for people with minimum concern for production. This individual is not concerned
whether the group a small produces anything, but is highly concerned about the
leadership style reflects minimal concern for both production and people and is
leadership style reflects a moderate concern for both people and production, while the
9,9 leadership style reflects a maximum concern for both production and people. A 9,9
leader wants to meet schedules and get the job done but at the same time is highly
Additional
Function of management:-
Planning
The first component of managing is planning. A manager must determine what the
organizations goals are and how to achieve those goals. Much of this information will
come directly from the vision and mission statement for the company. Setting
objectives for the goal and following up on the execution of the plan are two critical
components of the planning function. For example, a manager of a new local
restaurant will need to have a marketing plan, a hiring plan and a sales plan.
Organizing
Managers are responsible for organization of the company and this includes
organizing people and resources. Knowing how many employees are needed for
particular shifts can be critical to the success of a company. If those employees do not
have the necessary resources to complete their jobs, organization has not occurred.
Without an organized workplace, employees will see a manager as unprepared and
may lose respect for that particular manager’s supervisory techniques.
Leading
Managing and leading are not the same activity. A manager manages employees; this
person makes sure that tasks are completed on time and policies are followed.
Employees typically follow managers because he or she is the supervisor and in-
charge of employees. Employees see a leader as someone that motivates them and
guides them to help meet the firm’s goals. In an ideal situation, the manager also
serves as the leader. Managers who want to lead effectively need to discover what
motivates their employees and inspire them to reach the company objectives.
Controlling
The controlling function involves monitoring the firm’s performance to make sure
goals are being met. Managers need to pay attention to costs versus performance of
the organization. For example, if the company has a goal of increasing sales by 5%
over the next two months, the manager may check the progress toward the goal at the
end of month one. An effective manager will share this information with his or her
employees. This builds trust and a feeling of involvement for the employees