1.

Elements of Scientific Management

Scientific management is a theory
of management that analyzes and synthesizes workflows. Its main objective is
improving economic efficiency, especially labor productivity. Scientific management is
sometimes known as Taylorism

 Taylor Advocated the following elements of scientific management. : 1.

Work Study, 2. Standardisation of Tools and Equipment, 3. Scientific
Selection, Placement and Training, 4. Development of Functional
Foremanship, 5. Introducing Costing System, 6. Mental Revolution!

2. Differences Between Management and Administration

The major differences between management and administration are given below:

1. Management is a systematic way of managing people and things within the

organization. The administration is defined as an act of administering the
whole organization by a group of people.
2. While management focuses on policy implementation, policy formulation is
performed by the administration.
3. Administration takes all the important decisions of the organization while
management makes decisions under the boundaries set by
the administration.
4. Management is all about plans and actions, but the administration is
concerned with framing policies and setting objectives.
5. Management plays an executive role in the organization. Unlike
administration, whose role is decisive in nature.

3. What is Planning?
Planning is ascertaining prior to what to do and how to do. It is one of the primary managerial
duties. Before doing something, the manager must form an opinion on how to work on a specific
job. Hence, planning is firmly correlated with discovery and creativity. But the manager would
first have to set goals. Planning is an essential step what managers at all levels take. It needs
holding on to the decisions since it includes selecting a choice from alternative ways of
performance.

Importance of Planning
Planning is definitely significant as it directs us where to go, it furnishes direction and decreases
the danger of risk by making predictions. The significant advantages of planning are provided
below:
  Planning provides directions: Planning assures that the objectives are certainly asserted
so that they serve as a model for determining what action should be taken and in which
direction. If objects are well established, employees are informed of what the company
has to do and what they need do to accomplish those purposes.
 Planning decreases the chances of risk: Planning is an activity which permits a manager
to look forward and predict changes. By determining in prior the tasks to be completed,
planning notes the way to deal with changes and unpredictable effects.
 Planning decreases overlapping and wasteful activities: Planning works as the
foundation of organising the activities and purposes of distinct branches, departments,
and people. It assists in avoiding chaos and confusion. Since planning guarantees
precision in understanding and action, work is conducted on easily without delays.
 Planning encourages innovative ideas: Since it is the primary function of management,
new approaches can take the form of actual plans. It is the most challenging project for
the management as it leads all planned actions pointing to growth and of the business.
 Planning aids decision making: It encourages the manager to look into the future and
make a decision from amongst several alternative plans of action. The manager has to
assess each option and pick the most viable plan.

4. The Charismatic authority is an authority based on the special personal qualities

claimed by and for an individual in order to make the person attractive so that he could
influence a large number of people. Charismatic leadership is found in a person with
extraordinary characteristics of an individual who is different from others by his vision
and mission through which he can inspire many people around. Therefore, such leaders are
made the heads of social and political movements.

This authority depends on the extent to which such a charismatic leader can be able to
preserve the prosperity of his followers and influence them. The charismatic leadership
varies considerably between democratic and non-democratic politics.

Examples of some of the charismatic leaders are Gamal Abdul Nasser (Middle East),
Saddam Hussein, Houari Boumediene, Yassar Arafat, Ayatolah Khumeini, etc.

7. “Budgetary control is a system of controlling costs which includes the preparation

of budgets, coordinating the departments and establishing responsibilities,
comparing actual performance with the budgeted and acting upon results to achieve
maximum profitability.” 

Budgetary control is the process of determining various actual results with budgeted
figures for the enterprise for the future period and standards set then comparing
the budgeted figures with the actual performance for calculating variances, if any.
Budgetary control involves the use of budget and budgetary reports, throughout the
period to co-ordinate, evaluate and control day-to-day operations in accordance
with the goals specified by the budget.

SECTION – B
9. What are contribution of Elton Mayo

Contribution of Elton Mayo to Management Thought George Elton Mayo was one of the
few theorists who considered the human relations issues and their impact on work
performance. George Mayo and his other colleagues conducted experiments, called as
Hawthorne experiments. Hawthorne experiments are acknowledged all over the world,
as these experiments have changed the viewpoint of managers towards workers of the
organisation. Hawthorne experiments gave a positive turning point in the history of the
human relations movement. These experiments gave a different perspective to the
concept of human behaviour and its function in an organisation. Mayo was mainly
responsible for executing these studies and spreading the importance of these studies.
Thus, he is known as the "Father of Human Relations Movement”.

Elton Mayo's contribution to management theory helped pave the way for modern
human relations management methods.

Based on his well-known Hawthorne experiments, Mayo's management theories grew

from his observations of employee productivity levels under varying environmental
conditions. His experiments drew a number of conclusions about the real source of
employee motivation, laying the groundwork for later approaches to team building and
group dynamics. Mayo management theory states that employees are motivated far
more by relational factors such as attention and camaraderie than by monetary rewards
or environmental factors such as lighting, humidity, etc.

These experiments were quite similar to the scientific management school of thought
that gave emphasis to scientific research for improving the efficiency of processes with
the help of better methods and equipment. In case of Hawthorne studies, the major
emphasis was on improving the lighting of the working area. The National Research
Council conducted experiments to study the relationship between lighting and
productivity.

Elton Mayo developed a matrix which he used to illustrate the likelihood that a given
team would be successful. His matrix demonstrates the role that varying combinations
of group norms and group cohesiveness play in team effectiveness.
The following are the four combinations of Mayo theory and the effect of each on
team dynamics:

1. Groups with low norms and low cohesiveness are ineffective; they have no impact,
since none of the members are motivated to excel, according to Mayo's theory.

2. Groups with low norms and high cohesiveness have a negative impact, since fellow
members encourage negative behavior (e.g., gangs).

3. Groups with high norms and low cohesiveness have some degree of positive impact
through individual member accomplishments.

4. Groups with high norms and high cohesiveness have the greatest positive impact,
Mayo's theory predicts, since group members encourage one another to excel.

Some of the major contribution of mayo in developing management

thought are as follows: 1. Human Relations Approach 2. Non-
Economic Awards 3. Social Man 4. Organisation as a Social System.

10. Types of Policies

The term policy is derived from the Greek word “Politicia” relating to
policy that is citizen and Latin work “politis” meaning polished, that
is to say clear. These policies which are generally formulated at top
level helps managers sufficient freedom to make judgments and helps
to achieve the organizational goals and objectives.

The term “Policy” is defined by koontz and O ‘Donnel as “policies

are general statements or understandings which guide
mangers thinking in decision making”. They ensure that
decisions fall within certain boundaries. They usually don’t require
action but are intended to guide managers in their commitment to the
decision they ultimately make.

Type of Policies:
Policies may be divided into different types of policies from different
approaches.

A. On the Basis of Source:

(i) Originated Policy.

(ii) Appealed Policy.

(iii) Implied Policy.

(iv) Externally imposed policy.

B. On the Basis of different Levels:

Policies are divided into the following types on the basis of
levels:
1. Basic Policies.

2. General policies.

3. Departmental Policies

C. On the Basis of Managerial Functions:

Policies arise from decision pertaining to fundamental managerial
functions are called managerial policies.

These includes the following policies:

1. Planning policies.

2. Organisation policies.

3. Motivation and control policies.

D. On the Basis of Dissemination:
Policies can be classified into two types on the basis of
dissemination:
1. Written statements—Explicit policies.

2. Oral dissemination—Implicit policies.

E. On the Basis of Functions:

Functional policies can be classified as follows:

1. Marketing Policies:
Basically marketing policies relate to each of the “four Ps in
marketing” namely.

(a) Product,

(b) Pricing,

(c) Promotion, and 

(d) Physical distribution.

2. Production Policies:
Production policy decisions involves with the following:
a) The size of the run,

b) Automation,

c) Production stabilisation,

d) Extent of making or buying component, and 

e) Inventory levels.

3. Financial Policies:
Financial policies related to the following:
(a) Sources of capital

(b) Working capital

(c) Profit distribution.

(d) Depreciation allowances.

4. Personnel Policies:
This policy decisions have to be taken in connection with personnel
administration.

These relate to the following.

(a) Personnel selection.

(b) Training and promotion.

(c) Remuneration and benefits.

(d) Industrial relations.

12. Effective Communication

Definition: Effective communication is a process of exchanging ideas,
thoughts, knowledge and information such that the purpose or intention is
fulfilled in the best possible manner. In simple words, it is nothing but the
presentation of views by the sender in a way best understood by the
receiver.
Effective Communication

1. Characteristics
2. Skills
3. Significance
4. Barriers
Characteristics of Effective Communication

Just delivering a message is not enough; it must meet the purpose of the
sender. These are the elements which make communication effective:

 Clear Message: The message which the sender wants to convey

must be simple, easy to understand and systematically framed to
retain its meaningfulness.
 Correct Message: The information communicated must not be vague
or false in any sense; it must be free from errors and grammatical
mistakes.
 Complete Message: Communication is the base for decision making.
If the information is incomplete, it may lead to wrong decisions.
 Precise Message: The message sent must be short and concise to
facilitate straightforward interpretation and take the desired steps.
 Reliability: The sender must be sure from his end that whatever he is
conveying is right by his knowledge. Even the receiver must have trust
on the sender and can rely on the message sent.
 Consideration of the Recipient: The medium of communication and
other physical settings must be planned, keeping in mind the attitude,
language, knowledge, education level and position of the receiver.
 Sender’s Courtesy: The message so drafted must reflect the
sender’s courtesy, humbleness and respect towards the receiver.

Effective Communication Skills

Conveying a message effectively is an art as well as a skill developed after

continuous practice and experience. The predetermined set of skills
required for an influential communication process are as follows:

 Observance: A person must possess sharp observing skills to gain

more and more knowledge and information.
 Clarity and Brevity: The message must be drafted in simple words,
and it should be clear and precise to create the desired impact over
the receiver.
 Listening and Understanding: The most crucial skill in a person is
he must be a good, alert and patient listener. He must be able to
understand and interpret the message well.
 Emotional Intelligence: A person must be emotionally aware and
the ability to influence others from within.
  Self-Efficacy: Also, he/she must have faith in himself and his
capabilities to achieve the objectives of communication.
 Self-Confidence: Being one of the essential communication skills,
confidence enhances the worthiness of the message being delivered.
 Respectfulness: Delivering a message with courtesy and respecting
the values, believes, opinions and ideas of the receiver is the essence
of effective communication.
 Non-Verbal Communication: To connect with the receiver in a
better way, the sender must involve the non-verbal means
communication too. These include gestures, facial expressions, eye
contact, postures, etc.
 Selection of the Right Medium: Choice of the correct medium for
communication is also a skill. It is necessary to select an appropriate
medium according to the situation, priority of the message, the
receiver’s point of view, etc.
 Providing Feedback: Effective communication is always a two-way
process. A person must take as well as give feedback to bring forward
the other person’s perspective too.
Significance of Effective Communication in Business

Following are importance of effective business communication:

Employee Management: Effective communication ensures self-discipline

and efficient management since the employees are heard by the top
management, and there is open communication in the organisation.

Team Building: People in the organisation work as a team to accomplish

common goals, thus effective communication boosts the morale of the
whole team.

Growth of the Organization: It ensures better decision making,

intensifies public relations and enhances problem-solving ability. All this
leads to corporate growth and development.

Build Strong Relationships: Interactions often simplify things; they

positively motivate the employees to perform better and maintain long-term
relations with others in the organisation.

Ascertain Transparency and Develops Trust: Effective communication is

considered to be a base for building trust and assures sharing of complete
information.
Facilitates Creativity and Innovation: It creates an environment where
employees are free to share their ideas by exploring their creative and
innovative side.

Reduces Misunderstanding: Effective communication eliminates the

possibility of confusion and misunderstanding by conveying the message
clearly and appropriately.

Organisational Growth: By maintaining cordial relations between the

employees and the management, it enhances the functioning and leads to
the achievement of corporate goals and objectives.

Barriers to Effective Communication

There are certain obstacles which sometimes hinder the process of

communication, making it less useful for the sender as well as the receiver.
These barriers are categorised under three groups. Let us understand
these in detail below:
Barriers Involving Words

Words play an essential role in the process of communication. Any

disturbance or distraction in the way a message is presented may lead to
miscommunication. Following are the different types of communication
barriers related to words:

 Language: It is a medium of communication. If the sender is making

excessive use of technical terms, it will become difficult for the receiver
to understand the message clearly.
 Ambiguity and Overuse of Abstractions: Even if the message is
presented in a non-realistic or vague context involving a lot of notions,
the receiver won’t be able to connect with the idea properly.
 Disorganised Message: When the words are not organised
systematically to form a powerful message, it loses its efficiency and
meaning.
 Information Overload: The effectiveness of communication reduces
when a person keeps on speaking for an extended period. Thus,
leading to the receiver’s exhaustion, who won’t be able to keep track
of everything that is conveyed.
Barriers Involving People’s Background

People belong to different backgrounds, i.e., culture, education level,

gender, etc. These attributes majorly affect the efficiency of the
communication process. It involves the following related obstacles:

 Attitudinal Differences: At times, people are resistant to understand

or change their mind when they have set their views about a particular
topic. Their attitude obstructs meeting the purpose of the
communication.
 Demographic Differences: The difference in age, generation,
gender, status, tradition, etc., creates a lack of understanding among
people and thus, hinders the process of communication.
 Lack of Common Experience or Perspective: The experiences of a
person develops their perspective of seeing things in a particular way.
This perspective varies from person to person. Therefore, it becomes
difficult for a receiver to relate with the sender’s experience or views
as he might have never gone through it himself.
 Jumping to Conclusions: Some people lack the patience of
listening to others and often jump to conclusions between the
communication, thus neglecting the motive of the message.

SECTION – C

15. Decision-making is an integral part of modern management. Essentially,

Rational or sound decision making is taken as primary function of management.
Every manager takes hundreds and hundreds of decisions subconsciously or
consciously making it as the key component in the role of a manager. Decisions
play important roles as they determine both organizational and managerial
activities. A decision can be defined as a course of action purposely chosen from a
set of alternatives to achieve organizational or managerial objectives or goals.
Decision making process is continuous and indispensable component of managing
any organization or business activities. Decisions are made to sustain the activities
of all business activities and organizational functioning.
Decisions are made at every level of management to ensure organizational or
business goals are achieved. Further, the decisions make up one of core functional
values that every organization adopts and implements to ensure optimum growth
and drivability in terms of services and or products offered.

As such, decision making process can be further exemplified in the backdrop of the
following definitions.

Definition of Decision Making

According to the Oxford Advanced Learner’s Dictionary the term decision making
means - the process of deciding about something important, especially in a group
of people or in an organization.

Trewatha & Newport defines decision making process as follows:, “Decision-

making involves the selection of a course of action from among two or more
possible alternatives in order to arrive at a solution for a given problem”.

As evidenced by the foregone definitions, decision making process is a

consultative affair done by a comity of professionals to drive better functioning of
any organization. Thereby, it is a continuous and dynamic activity that pervades all
other activities pertaining to the organization. Since it is an ongoing activity,
decision making process plays vital importance in the functioning of an
organization. Since intellectual minds are involved in the process of decision
making, it requires solid scientific knowledge coupled with skills and experience in
addition to mental maturity.

Further, decision making process can be regarded as check and balance

system that keeps the organisation growing both in vertical and linear
directions. It means that decision making process seeks a goal. The goals are pre-
set business objectives, company missions and its vision. To achieve these goals,
company may face lot of obstacles in administrative, operational, marketing wings
and operational domains. Such problems are sorted out through comprehensive
decision making process. No decision comes as end in itself, since in may evolve
new problems to solve. When one problem is solved another arises and so on, such
that decision making process, as said earlier, is a continuous and dynamic.
A lot of time is consumed while decisions are taken. In a management setting,
decision cannot be taken abruptly. It should follow the steps such as

1. Defining the problem

2. Gathering information and collecting data
3. Developing and weighing the options
4. Choosing best possible option
5. Plan and execute
6. Take follow up action

Since decision making process follows the above sequential steps, a lot of time is
spent in this process. This is the case with every decision taken to solve
management and administrative problems in a business setting. Though the whole
process is time consuming, the result of such process in a professional organization
is magnanimous.

When decision making, there are many steps that can be taken; but when making
good decisions there are really only five steps that need to be considered. These
steps are as follows:
‍
Step 1: Identify Your Goal
One of the most effective decision making strategies is to keep an eye on your
goal. This simply means identifying the purpose of your decision by asking
yourself what exactly is the problem that needs to be solved? And why does this
problem need to be solved?

Figuring out what's most important to you will help you make good decisions.
When you know the reason why you have making a particular decision; it will
better serve you in staying with it, and defending it.
‍
Step 2: Gather Information for Weighing Your Options
When making good decisions it is best to gather necessary information that is
directly related to the problem. Doing this will help you to better understand what
needs to be done in solving the problem, and will also help to generate ideas for a
possible solution.
When gathering information it is best to make a list of every possible alternative;
even ones that may initially sound silly or seem unrealistic. Always seek the
opinions of people that you trust or speak to experts and professionals, because it
will help you to come up with a variety of solutions when weighing all your
options for a final decision. You will want to gather as many resources as possible
in order to make the best decision.
‍
Step 3: Consider the Consequences
This step can be just as important as step one because it will help you determine
how your final decision will impact yourself, and/or others involved. In this step,
you will be asking yourself what is likely to be the results of your decision. How
will it affect you now? And how will it affect your future?

This is an essential step because it allows you to review the pros and cons of the
different options that you listed in the previous step. It is also important because
you want to feel comfortable with all your options and the possible outcome of
whichever one you choose.
‍
Step 4: Make Your Decision
Now that you have identified your goal, gathered all necessary information, and
weighed the consequences, it is time to make a choice and actually execute your
final decision.  Understanding that this step can cause some people a lot of anxiety
is important because this is where you have to trust your instincts.

Although you may still be slightly indecisive about your final decision, you have to
take into account how this makes you feel. Ask yourself, does it feel right? And
does this decision work best for you now, and in the future? When you answer
those questions back, you should feel good about the result.
‍
Step 5: Evaluate Your Decision
Once you have made your final decision and put it into action, it is necessary to
evaluate the decision and the steps you have taken to ensure that it works. This
final step is probably just as important as step one, if not more important, because
it will help you to further develop your decision making skills for future problems.
This step is also fundamental because it may require you to seek out new
information and make some changes along the way.

Evolution of Management Thought 

The evolution of management thought is a process that started in the early
days of man. It began since the period man saw the need to live in groups.
Mighty men were able to organize the masses, share them into various
groups. The sharing was done accord to the masses’ strength, mental
capacities, and intelligence.

The point is that management has been practiced in one way or the other
since civilization began. If you want a good example where advance
management principles where applied, consider the organization of the olden
days Roman Catholic Church, military forces as well as ancient Greece.
These are all excellent examples. But the industrial revolution brought drastic
change. And suddenly, the need to develop a more holistic and formal
management theory became a necessity.
Explain the Evolution of Management Thought

Stages of the evolution of management thought

This topic is broad, and it also requires careful explanation and thought
process. One cannot understand what it entails or appreciates how it
happened without looking at the various areas where the said evolution
occurred. For better understanding, the evolution of management thought will
be shared into four different stages. These include:

 Pre-scientific management period

 Classical theory
 Neo-classical theory or behavior approach
 Bureaucratic Model of Max Weber
The Pre-Scientific Management Period

The industrial revolution that took place in the 18th century had a significant
impact on management as a whole. It changed how businesses, as well as
individuals, raised capitals; organize labor and the production of goods.
Entrepreneurs had access to all the factors of production such as land, labor,
and capital. Theirs was to make an effort to combine these factors to achieve
a targeted goal successfully.

However, the new dimension that management took following the industrial
revolution cannot be discussed without mentioning notable personalities who
contributed their quarter. They were able to introduce useful ideas and
approaches to give management a precise and universally acceptable
direction. Here are some of them.

 Professor Charles Babbage – United Kingdom (1729 – 1871)

Prof Babbage, a renowned professor in mathematics at Cambridge University
discovered that manufacturers were relying on guesswork and suggestions
and urged them to utilize mathematics and science to be more accurate and
productive.

 Robert Owens – United Kingdom (1771 – 1858)

Robert was regarded as the father of personnel management because of his
approach and focus on employee welfare. He introduced co-operation and
trade unions. Robert believed that employee welfare could determine their
performance to a large extent. He encouraged the training of workers,
education for their children, canteens in the workplace, shorter working hours,
among others.

Other Contributors to the Pre-Scientific Management Period Include:

 Henry Robson Towne – USA

 James Watt Junior – United Kingdom
 Seebohm Rowntree – United Kingdom
The Classical Theory
Prof Babbage, Robert Owens, and other names earlier mentioned can be
regarded as the pioneers of management. But their contribution to the
evolution of management is little. The beginning of what is known as
the science of management started in the last decade of the 19th century.
Names like Emerson, F.W. Taylor, H.L. Grant, and others, paved the way for
the establishment of what is called scientific management.

During the classical period, management thought was focused on job content,

standardization, the division of labor, and a scientific approach towards the
organization. It also was closely related to the industrial revolution as well as
the rise of large-scale enterprises.

The Neo-Classical Theory

This period of evolution of management thought is an improvement of the
classical theory. In other words, it modified and improved upon the classical
theory. For instance, Classical theory focused more on the area of job
content, including the management of physical resources, while the neo-
classical theory gave more profound emphasis on employee relationships in
the work environment.

The Bureaucratic Model

A German Sociologist called Max Weber proposed this model. And it includes
a system of rules, division of labor hinged on functional specialization, legal
authority, and power, the hierarchy of authority and placement of employees
based on their technical competence.
The Evolution of Management Theories
Organizations have been shaped and through the writings of several writers.
Their write-up consisted of governance of kingdoms and management of
humans. And these formed the literature that helped in the development
of management theories. And these management models were also offered
by the military, political and religious organizations.

For instance, Sun Tzu’s book “The Art of War” was written in the 16th century
BC. Sun was also a Chinese army general. However, the writings in Sun’s
book were also used for managerial purposes.

The book highlights that it’s possible to achieve success by using the strength
of the organization to exploit the weakness of rivals. Another great book was
Chanakya’s Arthashastra. It was written in the third century BC and focused
on the governance of the kingdom concerning the formulation of policies of
governance and management of people.

Conclusion

The evolution of management started from civilization. So, what we have now

is refined and improved management thoughts and theories. But knowing how
this evolution came about is vital. It will help to improve one’s knowledge of
the process and effectively utilize management principles for the betterment of
the organization.