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Department of Automobile Engineering,  GE5552 ENGINEERING MANAGEMENT

MIT‐Campus, Anna University, Chennai‐44
COURSE OBJECTIVES:
The main learning objective of this course is to prepare the 
students for:
1. Explaining basic concepts of management; approaches to
management; contributors to management studies; various
forms of business organization and trade unions function in
professional organizations.
2. Applying various functions of management in professional
organization.
3. Applying organizational theory in professional organization.
4. Applying the principles of productivity and operations
management in professional organization.
5. Applying modern concepts and marketing in management in
professional organization.
Mr. M. Balaguru, 
Teaching Fellow

GE5552 ENGINEERING MANAGEMENT
COURSE OUTCOMES:
The main learning objective of this course is to prepare the
students for:
1. Explain basic concepts of management; approaches to
management; contributors to management studies; various
forms of business organization and trade unions function in
professional organizations.
2. Apply various functions of management in professional
organization.
3. Apply organizational theory in professional organization.
4. Apply the principles of productivity and operations
management in professional organization.
5. Apply modern concepts and marketing in management in
professional organization.
TEXT BOOKS:
1. Koontz. H. and Weihrich. H., Essentials of Management: An 
International Perspective, 8th Edition, Tata McGrawhill, New 
Delhi, 2010.
2. M. Govindarajan and S. Natarajan, Principles of Management, 
Prentice Hall of India, New Delhi, 2009.
REFERENCES:
1. Joseph J, Massie, ‘Essentials of Management’ Prentice Hall of
India Pvt. Ltd., 1985.
2. M.Govindarajan, Marketing Management, Prentice Hall of
India, New Delhi, 2010.
3. R.Panneerselvam, Operations Research, Prentice Hall of
India, New Delhi, 2013.
4. S.Chandran, Organizational Behaviours, Vikas Publishing
House Pvt. Ltd., 1994.
5. Saxena, P.K., Principles of Management: A Modern Approach,
Global India Publications, 2009.

UNIT I INTRODUCTION TO MANAGEMENT Introduction to Management
Management –Meaning / Introduction
• Definition and functions of Management  • Management is becoming the essential part of everyone in our
• Approaches to the study of Management day to day life.
• Mintzberg’s Ten Managerial Roles • Management is essential not only for business concerns but
• Principles of Taylor; Fayol; Weber; Parker  also for banks, schools, colleges, hospitals, hotels, religious
bodies, charitable trust, etc.,
• Forms of Organization: 
• Management is the integrating force in all organized activity.
• Sole Proprietorship;  Whenever two or more people working together to attain a
• Partnership;  common objective, they have to co‐ordinate their activity,
• Company (Private & Public);  obviously management exist there…
• Cooperative Public Sector Vs Corporate Organization  • Management is a global and universal concept.
• Business Environment: Economic; Social; Political; Legal • Management is an act of getting people together to accomplish
desired goals and objective using available resources
• Trade Union: Definition; Functions; Pros and cons.
effectively and efficiently.

1

Efficiency (completing the work at low cost)  Effectiveness (completing the work in Time)
• Efficiency means doing the task correctly at minimum
cost through optimum utilization of resources
• Example: Ms. X prepared a well‐documented and
factual report on company’s performance but she could
not present it in Board Meeting as she could not
complete it on time.
• Here; Ms. X is efficient but not effective.
Management Meaning
• Management is the process of dealing with or
controlling things or people.
• Management is an art of getting things or work
done by people.
• Management is the coordination and
administration of tasks to achieve a goal. Such
administration activities include setting the
organization’s strategy and coordinating the efforts
of staff to accomplish these objectives through the
application of available resources.
Management –Definitions:
• According to Knootz and O’ Donnel,
“Management is the creation of an internal
environment in an enterprise where individuals,
working in groups, can perform effectively and
efficiently towards the attainment of group of goals.
It is the art of getting the work done through and
with people in formally organized groups”.
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• Effectiveness is concerned with end results means
completing the task correctly within stipulated time.
• Example: Mr. Y agreed to deliver a goods in time and
charged extra money from the company, but the goods
were delivered on time, & good quality also not
satisfactory…
• Here; Mr. Y is effective but not efficient.
Solution
• Although efficiency and effectiveness are different yet
they are interrelated. It is important for management
to maintain a balance between both efficiency and
effectiveness.
Management –Definitions:
• According to Peter. F. Drucker, “ Management is an
Organ; Organ can be described and defined only
through their functions”.
• According to the Mc Farland, “ Management is defined
for conceptual, theoretical and analytical purpose as
that process by which managers create, direct,
maintain and operate purposive organization through
systematic, coordinated, cooperative human effort”.
• According to Kimball and Kimball, “ Management
embraces all duties and functions that pertain to the
initiation of an enterprise, its financing, the
establishment of all major polices , the provision of all
necessary equipment, the outlining of general form of
organization under which the enterprise is to operate
and the selection of the principal officers”.
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Functions of Management
 Managerial functions are time specific, institution specific and country specific.
 The management functions of industrial revolution may differ from the 19th
Century and followed by 20th Century.
 Management functions are called managerial process, because, non‐stop for 
24x7 hours to attain the objectives.
Functions of Management
Basic

Main Functions  Subsidiary Functions
(POSDCO2RB) / (POSD, MCC) IRDC

1. Planning 1. Innovation
2. Organizing 2. Representation
3. Staffing 3. Decision –Making
4. Directing 4. Communication
5. Motivation
6. Controlling
7. Co‐ordination

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Main Functions  1. Planning :
1. Planning :
 It is the basic function of management.
“Think before you Act “  or “Look before you Leap”‐ Proverbs
 It deals with chalking out a future course of action &
 Thinking & Deciding in advance ISRO 2021 deciding in advance the most appropriate course of actions
 What to do for achievement of pre‐determined goals.
 How to do Inclusive of all W, H?  It is an exercise in problem solving & decision making.
 When to do  Planning is determination of courses of action to achieve
 Who is going to do it desired goals.
 Thus, planning is a systematic thinking about ways &
 Planning is a Primary function means for accomplishment of pre‐determined goals.
Example:   Planning is necessary to ensure proper utilization of
1. Preparing for Exam. human & non‐human resources.
2. Arrangement for Programme.  It is all pervasive, it is an intellectual activity and it also
helps in avoiding confusion, uncertainties.
 Bridges a gap between where we are 
today and where we want to reach.
 Sets the goal of an organization.
quote

2. Organizing:
Establishing the framework of working:
 Assigning work to employees (Utilizing the Internal Resources)  How many units or sub‐units or departments are needed.
 It is the process of establishing harmonious relationship   How many posts or designations are needed in each 
among the member of the organization & create network of  department.
relationship among them.
 How to distribute authority and responsibility among 
 Example: Bringing everything together.
employees.
 It is the process of bringing together physical, financial and Once these decisions are taken, organizational structure gets 
human resources and developing productive relationship set up.
amongst them for achievement of organizational goals.
 According to Henry Fayol, “To organize a business is to Organizing as a process involves:
provide it with everything useful or its functioning i.e. raw  Identification of activities.

material, tools, capital and personnel’s”.  Classification of grouping of activities.

 To organize a business involves determining & providing
human and non‐human resources to the organizational
structure.
 Assignment of duties.
 Delegation of authority and creation of responsibility.
 Coordinating authority and responsibility relationships.

3. Staffing  It is the function of managing the organization structure and

 Selecting the Right Person at Right Job at the right time. keeping it manned.
 Staffing has assumed greater importance in the recent years
due to advancement of technology, increase in size of business,
complexity of human behavior etc.
 The main purpose of staffing is to put right man on right job i.e.
square pegs in square holes and round pegs in round holes.
 HR‐ Recruitment & Selection Staffing involves:
 Example: For the Post of sales executive 
(starting from recruitment till Induction Programme.)  Manpower Planning (estimating man power in terms of
 Recruiting, selecting, appointing the employees, assigning duties,
searching, choose the person and giving the right place).
maintaining cordial relationship and taking care of grievances of  Recruitment, selection & placement.
employees.
 Training & development.
 Training and Development of employees, deciding their
remuneration, promotion and increments.  Remuneration.
 Evaluating their performance.  Performance appraisal.
 Promotions & transfer.

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4. Directing:  4. Directing: 
 “ It denotes motivating, Leading, guiding and communicating with 
 Supervision‐ implies overseeing the work of subordinates by their superiors.
subordinates to achieve goals”.
 Communication through circular, notice board, meeting, etc., It is the act of watching & directing work & workers.
 Giving direction or instruction to employees to get the job done.  Motivation‐ means inspiring, stimulating or encouraging the sub‐ordinates
 Leadership qualities are required. with zeal to work. Positive, negative, monetary, non‐monetary incentives
 Motivating employees by providing monetary and non‐monetary may be used for this purpose.
incentives.
 Communicating with them at regular intervals.  Leadership‐ may be defined as a process by which manager guides and
 It is that part of managerial function which actuates the organizational  influences the work of subordinates in desired direction.
methods to work efficiently for achievement of organizational purposes. 
 Communications‐ is the process of passing information, experience,
 It is considered life‐spark of the enterprise which sets it in motion the 
action of people because planning, organizing and staffing are the mere  opinion etc from one person to another. It is a bridge of understanding
preparations for doing the work. 
 Direction is that inert‐personnel aspect of management which deals 
directly with influencing, guiding, supervising, motivating sub‐ ordinate 
for the achievement of organizational goals.

5. Controlling:  The purpose of controlling is to ensure that everything occurs in

 It is performed to evaluate the performance of the employees &
deciding increments and promotion decisions.
 Controlling is required to avoid the negative deviations.
 Matching actual performance with the planed goal.
 If problem, tries to find out the reasons of deviation.
 Suggesting corrective measures come on the path of plan.
 It implies measurement of accomplishment against the standards
and correction of deviation if any to ensure achievement of
organizational goals.
conformities with the standards.
 An efficient system of control helps to predict deviations before they
actually occur.
 According to Theo Haimann, “Controlling is the process of checking
whether or not proper progress is being made towards the
objectives and goals and acting if necessary, to correct any
deviation”.
Therefore controlling has following steps:
 Establishment of standard performance.

 Measurement of actual performance.

 Comparison of actual performance with the standards and finding

out deviation if any.
 Corrective action.

Subsidiary Functions
6. Co‐ordination: 1. Innovation:
 It refers to the preparation of personnel and organizational to 
 It is the synchronization of all functions bring into action.
face the changes made in the business world.
 It is applicable to all function.  Customers are satisfied through innovation. 
 Example: New materials, new products, new technology in 
7. Motivation: production, new package, new design of a product and cost 
 It helps to increase the work performance, speed &  reduction.
employees willingness towards the work. 2. Representation: 
 This is done by a resourceful leader  Managers as a representative.
 Satisfying all the need of workers.  It deal with customers, suppliers, government officials, banks, 
 Example: favourable working environment, fair treatment,  financial Institutions, etc.
monetary & non‐monetary benefits, effective communication,   To maintain the good relationship is important. 
equal treating. 3. Decision Making :
 So many decisions, every day.
 D.M. help in smooth functioning of an Organization.

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4. Communication:
 It is the Transmission of Human thoughts, Views or Opinion 
from one person to another.
 Workers are informed with all W,H?
 Communication helps the regulation of job and coordination 
of all activities.

Approaches of Management

Historical background
• The historical background and the practice of management is as
old as human civilization.
• In traditional period when the human started to settled their life
in the group. The concept of “ Management” was developed
more or less.
• The ancient civilization of Egypt (the great pyramids), Greece
(leadership and was tactics of Alexander the great) and Rome
displayed the marvelous result of good management practices
through Roman catholic church, military organizations, a group
of German and Australian public administration and
intellectual during 16th to 18th centuries.
Continue…
• The Industrial revolution of about 1750 A.D.(anno domini) has
a great impact on the development of management thought.
• The origin of management as a discipline was developed in the
late 19th Century. Since 1950s, the academicians have
contributed significantly to the theoretical aspects of
management.
• The variety of approaches to management analysis has been
called as “ The management theory Jungle”.
• Management thinkers have sought ways to organize and clarify
the voluminous information about management that has been
collected and disseminated.

Approaches of Management
1. Classical approach / Theory / Thought
1. Classical approach / Theory / Thought
• The classical approach is the oldest formal approach of
2. Behavioral approach / Theory / Thought
management thought.
3. Quantitative approach / Theory / Thought
• It roots pre‐date the twentieth century. The classical
4. Systems approach / Theory / Thought
approach of thought generally concern ways to manage
5. Contingency approach / Theory / Thought
work and organization more effectively.
Quantitative 
Classical Theory 
(1880‐1930)
Neo‐ Classical Theory 
(1930‐1950)
Modern Theory 
Approach • Three areas of study that can be grouped under the classical
approach are scientific management, administrative
Bureaucratic  Human  Behavioral  System  Contingency  Management 
Scientific  Administration  TQM
Relations  Science  Approach Approach Science
Management  Model  theory
Approach Approach management and bureaucratic management.

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3. Quantitative approach / Theory / Thought
2. Behavioral approach / Theory / Thought • The Quantitative approach of management thought focusses on
• The Behavioral approach of management thought developed improving decision‐making via the application of quantitative
in part, because of perceived weaknesses in the assumptions techniques.
of classical approach. • Its roots can be traced back to scientific management.
• The classical approach organized efficiency, process and
a) Management Science:
principles. Some felt that this emphasis disregarded • management science also called operations research uses
important aspect of organizational life, particularly as it mathematical and statistical approaches to solve management
related to human behavior. problems.
• Thus, the behavioral approach focused on trying to • It developed during world war II as strategists tried to apply
understand the factors that affect human behavior at work. scientific knowledge and methods to complex problem of war.
• Industry began to apply management science after the war.

b) Production and operations management: Systems approach / Management Practices

• This approach focusses on the operation and control of Internal / External Resource
production process that transforms the resources into *Govt. *Competitors
finished goods and services. *Economy *Advocacy groups
• It has its root in scientific management but became and
identifiable area of management study after world war II. It Suppliers Customers End user
uses many of the tools of management science.
• Operations Management emphasizes productivity and
quality of both manufacturing and service organizations.
4. Systems approach / Theory / Thought
• The systems approach focuses on understanding the
organization as an open system that transforms inputs into
outputs. Costs + Profits
• The systems approach began to have a strong impact on
management thought in 1960, as a way of thinking about
managing techniques.

5. Contingency  approach / Theory / Thought

• The contingency approach focus on applying management Henry Mintzberg

principles and processes as dictated by the unique Researcher of Business Administration
& Economics
characteristics of each situation.
• It emphasizes that there is no one best way to manage and
that it depends on various situational factors, such as the  Henry Mintzberg OC OQ FRSC (born September 2, 1939) is a
external environment, technology, organizational Canadian academic and author on business and management.
 He is currently the Cleghorn Professor of Management Studies
characteristics, characteristics of the manager and at the Desautels Faculty of Management of McGill University in
characteristics of the subordinates. Montreal, Quebec, Canada,
 where he has been teaching since 1968.

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The Manager and his Job
• Management performs the function of management (planning,
organizing, staffing, directing and controlling) for the
accomplishment of organization goals.
• Any person who perform these functions is a manager. 
• Every manager is concerned with ideas, things and people.
Role Performed By Manager
• To meet the many demand of performing their functions,
managers assume multiple roles. A role is an organized set of
behaviors.
• Henry Mintzberg has identified ten roles common to the work of
all managers the ten roles are dividend into three groups.
• The performance of managerial roles and the requirement of
these roles can be played at different times by the same manager
and to different degrees depending on the level and function of
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management.
a) Interpersonal Roles:
• Interpersonal roles link all managerial work together. The three
interpersonal roles are primarily concerned with interpersonal
relationship.
1. Figurehead Role:
• The manager represents the organization in all matter of
formality.
• The top level manager represent the company legally and socially
to those outside of organization.
• The supervisor represents the workgroup to higher management
and higher management to the work group.
• Manager has to perform some duties of a ceremonial nature,
such as greeting the touring dignitaries, taking an important
customer to lunch and so on.
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b) Informational Roles:
• It ensure that information is provided. The three informational
roles are primarily concerned with the information aspect of
managerial work.
1. Monitor Role:  C) Decisional Roles:
• The manger receives and collects information about the
operation of an enterprise.
2. Disseminator Role:
• The manager passes some of his privileged (special) information
directly to his subordinates who would otherwise have no access
to it.
3. Spokes Person Role:
• In this role, the manager informs and satisfy various group and
people who influence his organization.
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• The ten roles are described individually, but they form an
integrated as whole
Communicate/
Convey/ 
deploy
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2. The leader Role:
• It defines the relationship between the manager and employees.
• As a leader, every manager must motivate and encourage his
employees. He must also try to reconcile their individual needs
with the goal of the organization.
3. The liaison Role:
• Every manager must cultivate contacts outside his vertical chain
of command to collect information useful for his organization.
• Interacts with pears and people outside the organization.
• The top level manager use the liaison role to gain favor and
information, while the supervisor uses it to maintain the routine
flow of work.
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• He advises shareholders about financial performance, Assures
consumer groups that the organization is fulfilling its social
responsibilities and satisfies government that the origination is
abiding by the law.
• This role make significant use of the information in decision
making aspects.
1. Entrepreneur Role:
• The manager initiates change, new projects, identify new ideas,
delegate idea, responsibility to other.
2. Disturbance Handler Role:
• The manager deals with threats to the organization. The manager
takes corrective action during disputes or crises; resolve conflict
among subordinates, customer issues, adapt to environmental
crises.
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3. Resource Allocator Role:
• The manager decides who gets resources; schedule, budget set
priorities and choose where the organization will apply its efforts.
4. Negotiate Role: “The Father of Scientific Management”
• The manager negotiate on behalf of the organization. The top
level manager makes the decisions about the organization as a And
whole, while the supervisor makes decision about his or her
The Evolution of Management Theory
particular work unit.

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 Frederick Winslow Taylor, was born on March

20, 1865, into an upper class liberal
Philadelphia family.
 His father a lawyer and his mother a feminist
both believed in high thinking and plain living.
 Taylor was always counting and measuring
things to figure a better way of doing
something.
 At age twenty-five, Taylor earned an
engineering degree at the Stevens Institute of
Technology in New Jersey.
Industrial Revolution
 Worked as a machinist and pattern maker in
Philadelphia at the Enterprise Hydraulic Works,
then became a common laborer at the
Midvale Steel Company.
 He started as shop clerk and quickly
progressed to machinist, foreman,
maintenance foreman, and chief draftsman.
 Within six years he advanced to research
director, then chief engineer.

But, along with this great leap in technology, there was an overall downfall in the
socioeconomic and cultural situation of the people. Growth of cities were one of
the major consequences of the Industrial Revolution.
 The Industrial Revolution was
widespread replacement of manual
labor by machines that began in
Britain in the 18th century with the
introduction of steam power and
powered machinery (mainly in textile
manufacturing).
 It created a specialized and
interdependent economic life and made
the urban worker more completely
dependent on the will of the employer
than the rural worker had ever
been.
 It changed our societies from a mainly
agricultural society to one that in which
industry and manufacturing was in
control. Many people were driven to the cities to look for work, in turn the ended living in
the cities that could not support them. With the new industrial age, a new
quantitative and materialistic view of the world took place. This caused the need
for people to consume as much as they could. Living on small wages that required
small children to work in factories for long days.

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Principle of Scientific Management:
• Origin starts to deal with management in practice since last
 After the Civil War (1861–1865) industry begin to century.
change. • In early 1900s, large organization and production also
 National industries grew out of local trades -- steel, glass,
managed, at that time only few external management tools,
textiles, and shoes and what were small factories became models and methods were available.
large plants. • Mr. Frederick Winslow Taylor (F. W. Taylor), done an
 Owners of capital became wealthier with mass experiment in a coal field in England.
production, and workers received little for their efforts. • To find result of harmony in workplace for overall
 Problems: productivity of the organization.
 carelessness,
 safety,
 inefficiencies,
 soldiering (worker foot dragging) on the job.

His principles are, a) Sharing a part of surplus with workers
1. Science, Not rules of Thumb: b) Training of employees
In order to increase organizational efficiency, the “ Rule of  c) Division of work
Thumb” Method should be substituted by method developed  d) Team spirit
through scientific analysis of work. e) Positive attitude
Rule of Thumb: It means decisions taken by manager as per their  f) Sense of discipline
personal judgements. g) Sincerity etc.
• According  to Taylor, each and every single work in organization  Full cooperation & hard work to achieve organization goal.
should be scientifically planned. Example:
• That helps to save time and human energy • Japanese companies‐ Paternalistic style of management.
• Work assigned should be observed & Analysed. • Complete openness between Management and Employees.
2. Harmony, Not Discord: • Won’t do strike ‐ instead wear a black badge & work.
• Taylor stated that there should be a complete harmony (no  3. Mental revolution:
misunderstanding) between the workers and management. • It involves change in attitude of worker and management.
• Both management & employees should understand the  • Both should  realize the importance of each other.
importance of each other. • Full cooperation and aim to increase the profit
• Spirit of togetherness.

4. Cooperation, Not individualism: Techniques of Scientific Management
• Extension of 2nd Principle (Harmony, not discord)
• Cooperation between workers and management.
Factory Manager
• Mutual confidence, good will, etc.
• Important 
• Allowing workers to take part in decision making Planning In charge  Production In charge 
• Also workers should resist from going on strike.
• Management should always guide, encourage and help the workers.
5. Development of each and every person to his or her greatest  Instruction  Route  Time & Cost  Disciplin Speed  Gang  Repair  Inspector
Card Clerk Clerk Clerk arian Boss Boss Boss
efficiency and prosperity:
• Efficiency of every organization depends on skill & capabilities of 
employees.
Workmen
• Providing Training to workers
• To attain efficiency steps should be taken right from the process of  It implies development of competencies of all persons of an
selection of employees. organization after this scientific selection and assigning work suited
• Employees should be scientifically selected to their Temperament and abilities. This will increase the
• Works assigned according to his/her physical, mental and individual  productivity by utilizing the skills of worker to the fullest possible
capabilities. extent.

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1. Functional Foreman‐ship: b) Production In Charge:
it is a technique in which planning and execution are 1. Gang Boss:
separated. There are eight types of specialized professionals, four It is responsible for keeping tools and machines ready for 
each under planning and execution who keep a watch on all workers operation.
to extract performance. 2. Speed Boss:
It is responsible for timely and accurate completion of work.
a) Planning In charge: 3. Repair Boss:
1. Route Clerk: It is to ensure proper working conditions of tools and 
To specify the exact sequence and route of production. machines.
2. Instruction Card Clerk: 4. Inspector: 
It is responsible for drafting instructions for the workers. It’s to check the quality of work.
3. Time and Cost Clerk:
It is to prepare the time and cost sheet for the job.
4. Shop Disciplinarian: 
It’s to ensure discipline and enforcement of rules and 
regulation among the workers.

2. Standardisation and simplification of work: 5. Time Study:
it refers to developing the standards for every business  It determines the standard time taken to perform a well‐
activity where as, simplification refers to eliminating superfluous  defined job. The objective of time study is to determine the
varieties of product or service.  number of workers to be employed, frame suitable incentive
It results in saving of cost of labour, machines and tools. It  schemes and determine labour cost.
leads to fuller utilization of equipment and increase in turnover. 6. Fatigue Study:
3. Method Study: It seeks to determine time and frequency of rest intervals in 
The objective of method study is to find out one best way of  completing a task. The rest interval will enable workers to regain 
doing the job to maximize efficiency in use of materials, machinery,  their stamina thereby avoiding accidents, rejections and industrial 
manpower and capital. sickness.
4. Motion study: 7. Differential Piece Wage System:
It is the science of eliminating wastefulness resulting from  The system links wages and productivity. The standard
using unnecessary, ill‐directed and inefficient motion by works and  output per day is established and two piece rates are used, higher
machines to identify best method of work. for those, who achieve up to and more than standard output i.e.,
efficient workers and lower for inefficient and flow workers will be
rewarded and inefficient will be motivated to improve their
performance.

For Example: Principle of Modern Management:
standard task is 10 Units. Rates are Rs.50 per unit for  • The father of Modern Management is 
producing 10 units or more and Rs.40 per unit for producing less  Mr. Henry Fayol (1841‐1925)
than 10 units. • French mining engineer, 
Worker A Produces‐11 Units; he gets Rs.550 (11 Units X 50 per unit)   • Mining executive, 
Worker B Produces ‐9 Units; he gets Rs.360 (9 Units X 40 per unit)  • Author and director of mines ,
• He developed a general theory of business administration (fayolism)
This difference of Rs.190 (550‐360) will motivate B to perform  • According to him there are 14 major principles of management
better. which every manager has to practice for the success of the
organization.

1. Division of Work:
 Whole work is divided into small tasks
 Specialization, skill to increase the product.

66

11

2. Authority & Responsibility:
• Authority means the right of a superior command his  Sl.  Basis
subordinates.  No
• Responsibility is the responsibility of a subordinate  1.
to complete the task assigned to him by his superior.
3. Discipline:
• Essential for smooth functioning of organs.
• Obedience, Proper conduct
4. Unity of Command:
• Each subordinate receives order from superior.
• One to one
• If more than one superior, chance for  the employee.  main objective of that department.
confusion & conflict.
5. Unity & Direction:
All related activities should be put under one group,
these should be one plan of action for them and they
should be under the control of one manager. 67
6. Subordination of Individual Interest to mutual interest:
• The management must put aside personal
considerations and put company objectives firstly.
• Therefore the interest of goal of the organization
must prevail over the personal interest of individuals.
7. Remuneration:
• Workers must be paid sufficiently as this is a chief
motivation of employees and it greatly influences
productivity.
• Remuneration payable should be fair reasonable
and rewarding of effort.
8. Degree of centralization:
• The amount of power with central management
depends on company size.
• Centralization implies the concentration of decision
making authority at the top management.
69
12. Stability of Tenure of Personnel:
• It is a principle starting that in order for an organization to
run smoothly.
• Personnel (especially managerial personnel) must not
frequently enter and exit the organization.
13. Initiative: • Using the initiative of employees can add
strength and new ideas to an organization.
• Initiative on the part of employees is a source of
strength for organization because it provides new
and better ideas.
• Employees are likely to take greater interest in
the functioning of the organization.
14. Esprit De corps/ Team spirit:
• This refers to the need of managers to ensure and develop
morale in the workplace; individually and communally.
• Team spirit helps to develop an atmosphere of mutual
trust and understanding.
• Team spirit helps to finish the task on time. 71
19‐09‐2022
Unity of Command Vs Unity of Direction
Unity of command Unity of Direction
Meaning • It means that a subordinate  • It advocates “one head and one 
should receive orders and  plan” for a group of activities 
instruction form one BOSS  having the same objectives. 
only • The activities should be directed 
towards the common goals.
2. Scope The principle is related to the  This principle is related to the 
functioning of personnel. functioning of a department or the 
organization as a goals.
3. Purpose The main purpose of unity of  The purpose of unity of direction is 
command is to avoid confusion  to direct the effort of employees of 
and fix up the responsibility of  one department in achieving the 
 
4. Result In Systematic working and improved  Co‐ordination within a particular  
efficiency by removing confusion  department and overall ; by 
and characteristic conditions. preventing overlapping of various 
activities.
68
9. Line of Authority/ Scalar Chain:
• This refers to the chain of superiors ranging from
top management to the lowest rank.
• The principle of suggest that there should be a
clear line of authority from top to bottom linking
all managers at all levels.
10. Orders:
• Social order ensures the fluid operation of a
company through authoritative procedure.
• Material order ensures safety and efficiency in
the workplace. Order should be acceptable and
under the rules of the company.
11. Equity:
• Employees must be treated kindly and justice
must be enacted to ensure adjust workplace.
• Managers should be fair and impartial when
dealing with employees, giving equal attention
towards all employees. 70
72
12
 19‐09‐2022

Introduction
Max Weber's Bureaucratic Theory
• Bureaucratic Theory was developed by a
Bureaucracy
German Sociologist and political • Bureaucracy refers to a specialized system and
economist Max Weber (1864-1920). process of maintaining uniformity or authority within
• According to him, bureaucracy is the
an organization.
most efficient form of organization.
• Bureaucratic processes are most common in Large 
• The organization has a well defined
Organizations & Government Sectors.
line of authority.
• It has clear rules and regulations which
are strictly followed.
• He was the first to give a systematic
theory of bureaucracy. 73 74

Bureaucratic Management
Max Weber 1. Traditional authority:
• Power is the ability to force people to obey. • In traditional authority, the legitimacy of the
authority comes from tradition or custom; people
• On the other hand authority is the legal power to give
order (formal position). obey this because they are influenced by tradition.
2. Legal‐Rational Authority:
• Weber distinguishes three types of authority 
‐ • Weber identified "rationally‐created rules“ as the
1. Traditional authority
central feature of this form of authority.
2. Legal‐Rational Authority • Obedient under this system is owed to the legally
3. Charismatic Authority established order which is rational in character.
3. Charismatic Authority:
• Charismatic authority is found in a leader whose
mission and vision inspire others. It is based upon the
extraordinary characteristics of an individual.
75 Examples‐Lenin, Gandhi, Mao, Martin Luther king. 76

Bureaucratic Management Max Weber

• Bureaucracy is an administrative body of officials. Principles of Bureaucratic theory

• In his conception, bureaucracy is a particular type of
administrative structure, developed in association with the Job specialization
rational‐legal mode of authority.
Authority hierarchy
• Bureaucracy refers to a type of organizational structure characterized Formal selections
by
1. division of labor, Formal rules and regulations
2. A well‐defined Authority Hierarchy,
Impersonality
3. High formalization ,
4. Impersonal relations, career orientation
5. Employment decisions based on merit,
6. Career tracks for employees and distinct separation of members'
organizational and personallives.(Max Weber)
77 78

13
 19‐09‐2022

The bureaucratic form has six major principles: 2. Authority Hierarchy

• Each lower office is controlled and supervised by a higher
1. Job specialization/ Division of Labor one. vertical division of levels.
• Each person's Jobs are divided into simple, routine, fixed and • Authority and its flow subordination “Such a system offers the
well-defined tasks category based on competence and governed the possibility of appealing the decision of a lower
functional specialization. office to its higher authority”
• Specialization Separation of roles and duties “higher authority Highest Office
[is not] authorized to take over the business of the lower”
Executive
High Office High Office
Policy & 
Operations
Planning

Strategic  Policy  Regional Low Office Low Office Low Office

Planning Development Management

Special  Legislative 
Office Staffing Maintenance 79 Lowest Office Lowest Office Lowest Office Lowest Office
Projects Relations 80

3. Formal selection/ Qualification 4. Formal rules & Regulations/documentations:

• All organizational members are to be selected on the basis of • To ensure uniformity and to regulate actions of employees,
technical qualifications and competence demonstrated by managers must depend heavily upon formal organizational rules
training, education or formal examination. and regulations. Decisions are recorded in personal files.
• Thus, rules of law lead to impersonality in interpersonal
• Performance is measured by formal, impersonal rules.
relations.
• Rules regulate all matters abstractly. i.e. no one is special
• Training and qualification is the number one requisite.
Management Duties. The “Governed”
• How to manage
• How to carry out duties PhD Not Special
• Knowledge of the rules
Master’s Master’s Not Special Not Special

Bachelor’s Bachelor’s Bachelor’s Not Special Not Special Not Special

Not Special Not Special Not Special Not Special

Associate’s Associate’s Associate’s Associate’s
81 82

5. Impersonality
6. Career orientation/ Careerism:
• Rules and controls are applied uniformly, avoiding
• Career building opportunity is offered. Promotions and salary
involvement with personalities and preferences of employees.
hikes are strictly based on technical competence.
Biasness and favoritism are not preferred. • They work for a fixed salaries and pursue their career within the
• Devotion is to your work and role, not to person above you. organization.
“[official] is not considered the personal servant of a ruler”
Promoted here 6 months ago
Devotion to  Devoted to Bureau  (and don’t know what the  Advancement and 
Management
Purpose/Duty Hell I’m doing) Seniority
Devoted to  Devoted to  Promoted 
Division  Division 
here 7 years 
Management Management
ago

Devoted to  Devoted to  Devoted to  Promoted here 

Planning Policy Region 17 years ago

Devoted to  Devoted to  Devoted to  Devoted to  Started here 

Project Schmoozing Office Toilets 83 25 years ago 84

14
 19‐09‐2022

Bureaucratic Management Bureaucratic Management

Max Weber (Criticism) Max Weber (Criticism)

• Too much emphasis on rules and regulations • Its system of control and authority are outdated which

causes displacement of goal. can't work in such a changed environment.

• Crosier describes bureaucracy as a rigid organization • Bureaucracy involves a lot of paper work.

that can't correct its behavior by learning its errors. (wastage of time, effort and money).

• Thompson used the term "Bureau‐pathology" which • Bureaucratic model may be suitable for government

means disease of bureaucracy. organizations, not for business organizations.

• It does not consider the informal relationships between

individuals working in the organizations
85 86

 Mary parker follet was a political philosopher, social critic

and a management thinker. She is regarded as a prophet in
Management circles.
 As Harold Pollard said in the field of managing no one can be 
more deserving of this title than her.
 Whatever she said in 1920 was rediscovered by psychologists 
in 1950 and 1960.
 Follett defined management as: "the art of getting things
done through people".

 She bridged the gap between taylor scientific management

and new social psychology of 1920 and promoted better
human relations i n the industry.
 She was a social worker turned management theorist and
3rd September 1868 – 18th December 1933 consultant and writer.

15
 19‐09‐2022

Constructive Conflict and Coordination:  Mary Parker Follett's

Mary Parker Follett Four Principles of Coordination
• conflict is neither good or bad. i t is the result which is good or bad.
It can be used constructively and destructively.
Coordination 
• There are three ways of dealing w i t h difference: in Early Stage

Mary Parker  Continuous 
Reciprocal  Follett’s  Process of 
Relations 4‐ Principles of  Coordination
Coordination
Situational Authority
Continuity 
• By domination only one side gets what it wants;
• by compromise neither side gets what it wants; Direct 
• by integratio n we find a way by which both sides may get Contact
what they wish.

Based on coordination, she formulated the following four principles

3. Principle of Continuous Process of Coordination:
of management:
1. Principle of Direct Contact:
• In an organization, the managers and others who are involved
in the completion of task must have direct contract with each
other.
• It helps avoid long and time‐consuming communication
channels.
4. Principle of Situational Authority:
2. Principle of Coordination in Early Stages:
• Any attempt of establishing coordination among the
organizational members should start from the earliest stages
of work flow.
• In other words, the members, be the managers or others,
working at the lowest level of work flow should be allowed to
participate in the process of coordination as early as possible
once the activity starts.
• Coordination is not a one time job or drive. In fact, it is an ongoing
process to conduct the on‐going orchestra of organizational activities.
• The process of coordination must begin when the organization starts,
and it must continue until the organization exists.
• Coordination must be done continuously during the management
process. It must be done during planning, organizing, directing and
controlling.
• The decisions and actions of all the people (i.e. of all managers and
employees) and departments of the organization are inter‐related.
• So, the decisions and actions of one person or department will affect
all other persons and departments in the organization.
• Therefore, before taking any decision or action all managers must first
find out the effect of that decision or action on other persons and
departments in the organization. This is called the Principle of
Reciprocal Relations.
• Co‐ordination will be successful only if this principle is followed
properly.

Mary Parker Follett’s Additional Principles of Coordination

Additional Principles of Coordination
• After Mary Parker Follett, modern management experts have extended her

Effective  list by adding four additional principles of coordination.

Communication • These additional or supplementary principles of coordination are explained as
follows :‐
5. Principle of Effective Communication
Mary Parker   Co‐ordination will be successful only in the presence of an effective
Follett’s  communication.
Scalar Chain Mutual Respect
Additional 
Principles of   Good communication must be present between all departments, within
Coordination
employees themselves and even between managers and their subordinates.
 All communication barriers and gaps must be avoided and fixed.
 Good communication helps to avoid misunderstandings in the organization.
Clarity of 
Objectives This overall helps in coordination.

16
 19‐09‐2022

7. Principle of Clarity of Objectives:
6. Principle of Mutual Respect
• Co‐ordination will be successful only if the organization has set its clear objectives.
 Coordination will be successful only if there exist a mutual respect throughout
• Everyone in the organization must know the objectives very clearly.
the organization.
• No one must have any doubts about the objectives of the organization.
 All managers working at different levels (top, middle or lower) must respect
• Clear objectives can be achieved easily and quickly.
each other.
8. Principle of Scalar Chain:
 Similarly, all employees must show a friendly attitude and should respect
• Scalar Chain is a line of authority.
each other during interactions.
• This line joins all the members (managers and employees) from top to bottom.
 There must also exist a feeling of brotherly hood among managers and
• Every member must know who is his superior.
employees.
• He must also know who is his subordinate.
 The managers must respect the feelings and emotions of the employees.
• Scalar Chain is necessary for good communication.
 On the other hand, employees too must understand and acknowledge their
• Scalar Chain must not be broken in norm circumstances.
bosses. Without mutual respect, coordination may not survive, and it will
• However, if quick action is necessary, then this chain can be broken.
eventually fail.
• This is done using "Gang Plank" / "Bridge" / "Direct Contact".

8. Principle of Scalar Chain: Mary Parker Follett’s Contribution
line of authority. 

• Scalar Chain is shown by a double ladder A to G and A to Q.

• A is the head of the organization.
• B and L are the next level, and so on.
• If quick action is necessary, then a "Gang Plank" "FP" is made.
• Now F and P can contact each other directly but they should inform E
and O about their decisions.

: Human Relation Management WHAT IS A BUSINESS ORGANIZATION ?

The term “ Business Organization” refers to how a business 
structured.
It refers to a commercial or Industrial enterprise and the 
people who constitute it.

17
 19‐09‐2022

Business Organization :
• An organization is a place where a group of people
1. Sole Proprietorship:
intentionally organized to accomplish a common or set • These firms are occurred by one person, usually the
of goals. individual who has day‐to‐day responsibility for running
the business sole proprietors own all the assets of the
Types of Business Organization business and the profits generated by it.
• They also assume “complete personal” responsibility
1. Sole Proprietorship for all of its liabilities or debts.
2. Partnership • In the eyes of the law you are one in the same with the
3. Corporations business.
4. Joint‐Stock company
a) Private limited company
b) Public limited company
5. Public Corporations
6. Government companies

2. Partnership:

• In a partnership, two or more people share ownership

of a single business like proprietorship the law does not
distinguish between the business and its owners.
• The partners should have a legal agreement that sets
forth
 how decision will be made,
 profits will be shared,
 disputes will be resolved,
 how future partners will be admitted to the
partnership,
 how partners can be bought out, or
 what step will be taken to dissolve the partnership
when needed.

18
 19‐09‐2022

3. Corporations:

• A Corporations, chartered by the state in which it is

head quarters, & is consider by law to be a unique
“entity”, sperate and apart from those who own it.
• A corporation can be taxed; it can be sued; it can enter
into contractual agreements.
• The owners of corporation are its shareholders. The
shareholders elect a board of directors to oversee the
major policies and decisions.
• The corporation has a life of its own and does not
dissolve when ownership changes.

19

4. Joint‐Stock company:
• Limited financial resources & heavy burden of risk
involved in both of the previous form of organization
has led to the formation of joint stock companies, these
have limited dilutive.
• The capital is raised by selling share of different values.
• The person who purchase the shares are called share‐
holder.
• The managing body know as board of directors who is
responsible for policy making, important financial and
technical decisions.
5. Public Corporations:
• A public corporation is wholly owned by the
Government central to state.
• It is established usually by a special act of the
parliament.
• Special statute also prescribes its management pattern
power duties and jurisdiction.
• Through the total capital is provided by the
government, they have separated entity & enjoy
independence in matters related to appointment,
promotions, etc.
Classification of Environmental Factors
• On the basis of the extent of intimacy with the firm, the
environmental factors may be classified into 2 aspects
namely internal and external.
a) Internal Environmental factors
• The internal environment is the environment that has a
direct impact on the business.
• The internal factors are generally controllable because
the company has control one there factors.
• It can be altered or modify there factors.
• The internal environmental factors are resources,
capabilities and culture.
19‐09‐2022
• There are two main types of joint stock companies private
limited and public limited company.
a) Private limited company:
• This type of company can be formed by two or more persons.
• The maximum number of the membership is limited to 50.
• In this, transfer of shares is limited to member only.
• The government also does not interface in the working of the
company.
b) Public limited company:
• It is one whose membership is open to general public.
• The minimum number required to form such company is
seven, but there is no upper limit.
• Such company’s can advertise to offer its share to general
public through a prospector.
• These public limited companies are subjected to greater
control supervision.
6. Government companies:
• A state enterprises can also be organized in the form of
a joint stock company;
• A government company is any company in which of the
share capital is held by the central government & party
by one or more state governments.
• It is managed by the elected board of directors. Which
may include private individuals.
• There are accountable for its working to the concerned
ministries or department and its working to the
concerned ministry or department and its annual
report is required to be placed every year on the table
of the parliament or state legislatives along with the
comment of the government to concerned department.
b) External Environment factors: 
• It refers to the environment that has an indirect
influence on the business.
• The factors are uncontrollable by the business.
• The two types of external environment as micro
environment and macro environment.
20
 19‐09‐2022

Components of Business Environment

•
,
Business Environment
•
•'
., J. ꞏ , , ' I •ꞏ,-.•,, . ' ' " , •• '! ', j I ꞏ •

Internal Environment External Environment

• Promoters'/shareholders '
values
• Mission/Objectives
•
• Management structure/ ꞏ
nature
• Internal power Micro (Task/ Macro (General I
relationship Operating) Rem o t e )
• Co. lmage/Brand equity Environment Environment
. • Physical assets/ faci lities • Cust omers • Economic factors
• R&D and technological • Suppliers • Social/ Cultural factors
capabi lities • Competitors • Demographic fact ors
• Human resources • Publics • Political I Govt. factors
• Marketing capabilit ies • Financiers • Natural factors
• Marketing intermediaries • Technological factors
• Global factors

Business Environment
Meaning: Business Environment refers to forces and
institutions outside the firm with which its members must
deal to achieve the organizational purposes.
Forces: Economical, Social, Political, technological etc.
Institution: supplier, customers, competitors, etc.
It include all those constraints and forces external to a
business within which it operates.
Therefore,
• The firm must be aware of the external forces and
institutions and
• The firm must be nagged keeping in mind these forces and
institutions so that the organizational objectives are
achieved.
Features of Business Management:
1. Totality of External forces:
Business Environment is the sum total of all the forces
external to a business firm.
2. Specific and General forces:
Business Environment includes both specific and general
forces.
Specific forces includes investors, competitors, customers,
etc. who influence business firm directly while general forces
includes social, political, economical, legal and technological
conditions which affects a business firm indirectly.

3. Inter‐relatedness:
All the forces factors of a business environment are closely
inter‐related. For Example, increased awareness of health
care has raised the demand for organic food and roasted
snacks
4. Dynamic:
Business Environment is dynamic in nature which keeps on
changing with the change in technology, consumers fashions
and tastes etc.
5. Uncertainty:
Business Environment is uncertainty as it is difficult to predict
the future environmental changes and their impact with full
accuracy.
6. Complexity:
Business environment is complex which is easy to understand
in parts separately but it is difficult to understand in totality.
7. Relativity:
Business Environment is relative concept whose impact
differ form country to country, region to region and firm to
firm. For example, a shift of preference from soft drinks to
juices will be welcomed as an opportunity by juice making
companies while a threat to soft drink manufactures.

21

Importance of Business Environment
1. Identification of opportunities to get first mover
advantages: Understanding of Business environment helps an
organization in identifying advantages opportunities and
getting their benefits prior to competitors, thus reaping the
benefits of being a pioneer.
2. Identification of Threads:
Correct knowledge of Business environment helps an
organization to identify those threats which may adversely
affect its operations. For example, Bajaj Auto made
considerable improvement in it two wheelers when Honda &
other companies entered the auto industry.
Dimensions/ Components of Business Environment:
1. Economic Environment:
It has immediate and direct economic impact on a business Rate
of Interest, Inflation Rate, Change in the income of People,
Monetary Policy, Price levels, etc. are some economic factors
which could affect business firms economic environment may
offer opportunities to a firm as it may put constraints.
2. Social Environment:
It includes various social forces like customs, beliefs, literacy
rate, educational levels, lifestyle, values etc. changes in social
environment affect an organization in the long run. Example,
Now a days people are paying more attention towards their
health as a result of which demand for mineral water, diet coke,
etc. has increased while demand of tobacco, fatty food products
has decreased.
5. Legal Environment:
• It constitutes the laws and legislations based by the
government, administrative orders court judgements,
decisions of various commissions and agencies.
• Business have to act according to various legislations and
their knowledge is very necessary.
• Example: Advertisement of Alcoholic products is prohibited
and it is compulsory to give statutory warning on
advertisement of Cigarette.
19‐09‐2022
3. Tapping useful resources: business environment makes
available various resources such as capital, labor, machine,
raw materials etc., to a business firm.
In order to know the availability of resources and making
them available on time at economical price, knowledge of
business environment is necessary.
4. Coping with Rapid Changes: continuous study/ scanning
of Business environment helps in knowing the changes
which are taking place and thus they can be faced effectively.
5. Assistance in Planning and Policy formulation:
Understanding and analysis of Business environment helps
an organization in planning and policy formulation. For
example: ITC, Hotels planned new hotels in India after
observing boom in tourism sector.
3. Technical Environment:
It provides new and advanced way/ technique of production. A
businessman must closely monitor the technological changes taking
place in the industry as it help in facing competition and improving
quality of the product. For example; Digital watches in place of
traditional watches, artificial silk fabric in place of traditional
cotton and silk fabrics, booking of railway tickets on internet etc.
4. Political Environment:
Changes in political situation also affect business organizations,
political stability builds confidence among business community
while political instability and bad law & order situation of
government towards business, types of government‐Single party or
Coalition government affect the business.
Example: Bangalore and Hyderabad have become the most popular
locations for IT Industry due to supportive political climate.
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Cont..
Meaning
• Trade Union is an organization of workers acting
collectively, who seek to protect and promote their mutual • According to Australian Bureau of Statistics,
interests. " Trade Union is an organization consisting predominantly
• Trade union is an organization of employees who formally join of employees, the principal activities of which include the
together to promote, protect, maintain and improve their negotiation of rates of pay and conditions of employment
social, economic, and political power of its members.
for its members."
• Sydney and Webbs defined a trade union as-
"a continuous association of wage earners for the purpose of
maintaining or improving the condition of their working lives."

Features of Trade Union Why do employees join Trade Union?

 Trade union is an association.
 To get economic security
 Association either of employees or employers or
 To improve employer-employee relation
independent workers.
 To oppose management
 It is relatively permanent combination of workers.
 To communicate their views to the management
 It is association of workers engaged in securing
economic benefits of its memoirs.  To secure protection from economic hazard
 It's origin and growth has been influenced by different  To get employment
political ideologies.  To exercise leadership
 It achieves its objectives through collective action  To fall in line with others
and group effort.
 To fulfill basic needs

Functions of Trade Union Functions of Trade Union

Generally, trade unions perform two types of functions:
 Militant or protective
 Ministrant or positive
Militant or protective Functions:
• One set of activities performed by trade unions leads to the
protection of the position of their members in relation to their
employment.
• The aim of such activities is to ensure adequate wages,
secure better conditions of work and employment, get
better treatment from employers, etc.
Contd.
• When the unions fail to accomplish these aims by the method
of collective bargaining and negotiations, they adopt an
approach and put up a fight with the management in the form
of so-slow, strike, boycott, gherao, etc.
• Hence, these functions of the trade unions are known as
militant or fighting functions.
Ministrant or positive Functions
• Trade unions give financial support to members during
strike and lock-out and to provide other benefits to them.

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Functions of Trade Union
There are some other functions of Trade Union-
 Functions relating to the members
 Functions relating to the organization
 Functions relating to the union
 Functions relating to the society
Cont..
• To encourage workers' participation in management.
• To make members conscious about their rights
and duties.
• To raise status of members in the industrial
organization and in the society.
Cont..
• To improve financial position, by fixing higher subscription and
organizing special fund-raising campaigns.
• To preserve and strengthen trade union democracy.
• To train members to assume leadership position.
• To improve the network of communication between trade union
and its members.
• To promote the unity and solidarity within the organization.
19‐09‐2022
1. Functions relating to its members
• To safeguard workers against all sort of exploitation by
employer, union leader and political leader.
• To protect workers from the unfair labour practices of the
management.
• To ensure healthy and safe working conditions.
• To ensure desirable standard of living of workers.
• To remove the dissatisfaction and reduce the day to day
grievances of workers.
Contd.
2. Functions relating to the organization
• To highlight industrial organization as a joint enterprise between
workers and management.
• To increase production quantitatively as well as qualitatively.
• To help in the maintenance of discipline.
• To create opportunities for workers participation in management.
• To help in the removal of dissatisfaction and redress day to day
grievances.
• To facilitate communication with workers.
• To promote cordial and amicable relation between workers and
management.
3. Functions relating to the union
• To continuously review the relevance of union
objectives in the context of change.
• To publicize the trade union objectives, to know
people's reactions towards them and to make
necessary modification.
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 19‐09‐2022

Criticism of Trade Union

4. Functions relating to the society
• To render all sorts of constructive cooperation in the
formulation and implementation of plans and
policies relating to national development.
• Lack of education makes the workers narrow minded, and
prevents them from taking long-term views.
• Thus, anything, which does not result in an immediate reward,
becomes unattractive to them.
• This attitude is responsible for many strikes and lock outs

• To launch special campaigns against the social evils in industrial concerns.

• Trade unions may not welcome rationalization and improved
of corruptions, nepotism, black marketing,
methods of production for the fear that some of the workers
smuggling and illiteracy etc. will be put out of work. Therefore, they resort to go slow
• To create public opinion favourable to trade policy that retards industrial progress.

unions and thereby to raise their status.

Cont..  Problems of Trade Unions

• When labor unions strike because of illogical grounds,
1. Lack of consciousness
incalculable losses occur to producers, community and
The major numbers of members of trade union are not actually
the nation.
completely aware about their legal rights and duties. That is the
• These are harmful to the workers also. They suffer
reason they do not know the favorable characteristics of trade
because of the loss of wages.
unions. That is why in Bangladesh trade unions are not strong
• They create artificial scarcity of labor by demanding that only
enough to complete the need of the economy.
union personnel should be employed.
• By undue insistence on the payment of standard rates of
2.Lack of Unity
wages, they have only leveled down the earnings of the Trade union is actually a unity of the labor force for assuring
their need. But in Bangladesh trade unions are separated for
efficient workers .
political influence. It is a shock that only for difference in political
view, every industry has at least three major parts of a single union.

3. Lack of knowledge Cont..  Cont..

6.Political influence
• I n our country the level of workers is not properly educated.
• The most powerful and deep affecting barrier for the growth of
• They do not have enough knowledge about their rights and duties.
trade union of Bangladesh is its political environment.
• I n this case trade union could be helpful very much to develop workers
• Most of the trade unions of Bangladesh are not free from the
Kingdom of Saudi Arabia (KSA), but the whole level of workers cannot be
political influence.
developed.
• Political leaders use the trade unions for illegal purposes.
• That is why they do not feel the need or contribution of trade unions;
• For this the actual environment of trade union is not seen in Bangladesh.
again trade unions are banged here.
4. Financial Problems • In Bangladesh, trade unions work a part of political parties not as a

• The financial position of the trade unions is weak because their average free right saving association.

yearly income is very low and inadequate.

• The subscription rates are very low. Under conditions of multiplicity of
unions, a union interested in increasing its membership figures keeps
the subscription rate unduly low.

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 19‐09‐2022

Cont.. Suggestions for Trade Union

7.Division of trade union
• Bangladesh is a country where every organization has more trade
unions in name only.
• Those unions are driven by the political leaders of various political
parties.
• So a huge verity of problem arises in the organizations.
• The overall productivity got Moreover down.
• Trade union cannot play its role perfectly.
• That is why disputes are created and more division are created under
different.
• One Union i n One Industry: Multiplicity of unions in the
same plant leads to inter‐union rivalry that ultimately cuts at
the root of the trade union movement. I t weakens the power
for collective bargaining and reduces the effectiveness of
workers in securing their legitimate rights.
• Development of Leadership from Within: I t is of crucial
importance that trade unions are managed by the workers, and
not by outsiders. Leadership should be developed from within
the rank and file of the workers.

Suggestions for Trade Union Pros of Labor Union

Others • Help members with their wages and benefits
• Training
• Be treated fairly by the employers
• Reducing political involvement
• Represent the entire workforce for a bigger chance of
• Financial support success
• Establishing a rapport of trust • Protect minorities from being fired
• Allowing participation • Strikes

LABOR UNIONS:
THE FULKS WHO BRO UG HT YO U THE WUXEJI D.
CHI LD l ABO R l AWS, O VERTI M E. M I NI M UM
WAG E. I I WRY PRO TECTI O N, WO RKM ENS
COM PDISATION INSURANCE.
PENSilN SECURITY, RIGHT TO ORGANIZE ..ITC.

Cons of labor Union Possible Solutions

• Increase wages above the market average level
• Limit the number of labor unions
for corporations to grant
• Disturb the means of production • Investigate death of union leaders
• Chaos • Increase law enforcement
• Long strikes are costly for employees

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