Management theory and practice

Q1 You are hired as a trainer by Sachin Ethanol, a newly setup organization dealing in
manufacturing Ethanol from Sugarcane residue. The CEO wants you to train the newly
recruited management trainees about the Principles of Management. Explain the
principles of Management to these newly recruited employees by taking the help of Henri
Fayol's 14 Principles of Management?
Introduction
According to EW Taylor : Management is the art of knowing what you want to do and
then seeing that it is done in the best and cheapest way.
The relevance and complexity of management has grown along with the size and scope of
organised groupings across time. Organizations nowadays are increasingly global,
employee groupings are more diverse, and organisational structures are more focused on
collaboration than on huge hierarchies. Organizations are implementing novel
management techniques and philosophies to address these fresh issues. Let's examine the
idea, significance, and development of management.
Henry Fayol, referred to as the "father of modern management theory," changed how
people thought about management. He established a broad idea that is applicable to every
division and level of management. The administrators of an organisation use the Fayol
theory to plan and control its internal operations. He focused on getting things done.
Fayols 14 principles of management guides us for developing management practices.
Henri Fayol identified 5 functions of management, which are  planning, organizing,
commanding, coordinating and controlling
Concept and application
The Principles laid down by Fayol are explained below:

1. Principle of Division of Work: This idea states that the overall work should be broken down
into manageable chunks. According to their talents, skills, and interests, different
employees should be given the divided task. According to Fayol, specialisation results
from work division
.
2. Principle of Authority and Responsibility: - When someone is given a task, they should be
given the necessary authority to complete it. For instance, a manager should always be
given authority together with accountability. A person should be held accountable for the
same task once given the authority. Responsibility and authority are inextricably linked.
The manager should be held accountable if he fails to fulfil the work by the deadline if he
has been granted the authority to do so.

3. Principle of Discipline: Discipline, in the opinion of Fayol, is the most important factor in
the organisation. The rules that govern the company must be followed and respected by all
employees. The organisational objectives are more easily attained with discipline.
Effective leadership yields results in terms of good discipline. For it, there needs to be a
clear understanding of the organization's rules between management and employees.
4.Priciple of unity of command ; The boss should be the sole one to give orders to other
employees in any organisation, according to the principle of unity of command. From top
management to bottom management, this is relevant. The unit of command principle aims to
reduce confusion

5. Principle of Unity of Direction:: The Unity of Command Principle explains how a single
person receives directives from a single person. However, unity of direction describes how a
team works toward the same goal while being led by a single person. This idea states that
every group within the organisation ought to share the same goals. One manager, employing
one plan, should lead the team. Thus, this idea clarifies how groups work inside an
organisation

6 .Principle of subordination of individual interest to general interest Individual interest must

be subordinated to organisational interest, according to this idea. The manager should
constantly take the interests of the entire group into account while making decisions in the
organisation.

7. Principle of Remuneration: According to this principle, workers must receive fair

compensation for their services. The employee's talent, expertise, knowledge, tenure, and
other factors should be considered while determining compensation. Fair compensation
encourages employees to work more productively and produce more.
8. Principle of Centralization:the term "centralization" describes the concentration of
authority or power. This authority is placed in one or a small number of hands in some
organisations. this idea states that there should be an appropriate balance of centralization and
decentralisation within the organisation.
9.   Principle of Scalar Chain: typically, a company has a specific communication system in
place. It follows a chain, for example, the manager will inform the department head about a
decision, the department head will inform the supervisor, and the supervisor will inform the 
workers
10. Principle of Order: The appropriate people and the right materials should be where they
need to be at the right moment, according to the idea of order. It implies that the material
must be arranged properly. It must be in the proper spot. The right personnel placement is
also necessary
11. Principle of Equity: This notion calls for treating all employees fairly and equally.
Managers should treat their staff members with respect and fairness. There shouldn't be any
prejudice among the workers. For instance, workers at the same level but in different
departments should receive the same pay.
12. Principle of Stability of Tenure: While appointing an employee the manager should
assure the stability of tenure or job security to the employee. This creates a sense of
belonging among the employees. There should not be any uncertainty in the mind of the
employees regarding the stability of the job
13. Principle of Initiative: Taking the lead is referred to as initiative. It also entails
formulating fresh concepts. This rule states that the manager should support initiative among
 the staff. New ideas should be generated by the staff, and the management should be open to
them.
14. Principle of Esprit de Corps -Esprit de corps means union is strength. Management is a
collective endeavour. The organization's greatest asset is its human resources. The manager is
responsible for instilling a sense of teamwork among the workers. The manager should foster
a sense of camaraderie among the staff. If everyone works together, the goal can

Conclusion
The 14 management concepts are helpful tools for decision-making, coordination,
forecasting, planning, process management, and control in businesses. These principles, in
the opinion of Henri Fayol, act as a lighthouse that adjusts bearings, but they are only useful
to those who know how to get to the harbour. Many of these issues, despite being self-
evident, are nonetheless applied in modern management practises in firms on the basis of
common sense. It is still a useful list with focal areas based on Henri Fayol's research, which
still holds true today because of a number of logical principles. The notion that employees
should put the interests of the company ahead of their own personal interests is one of Fayol's
most enduring notions. This is a fundamental principle of the team concept, which has gained
enormous popularity in small organisations. Many businesses combine individuals with
various skills and talents into a team rather of having them work on tasks alone. Because
employees with different strengths complement one another and fill in for each other's
limitations, this strengthens any weaknesses. For instance, a modern team might have a
person who is gregarious, someone who is introverted and analytical, and someone who can
come up with a tonne of brilliant ideas. Fayol also prized "esprit de corps," or "body spirit,"
or group cohesiveness.

Q2. The newly set up management team is divided in their deliberation on a certain topic
and require your help. The core area of this discussion is whether Management is an Art
or a Science. As the chairman of the forum, can you throw some light on whether
Management is an art or a science or both and Why?
ANSWER
Introduction
Management  is the administration of an organization, whether it is a business, a non-
profit organization, or a government body. It is the art and science of managing resources of
the business.
Setting an organization's strategy and managing employee (or volunteer) efforts to achieve
goals through the use of available resources, such as financial, natural, technological, and
human resources, are included in management. The terms "run the business" and "change the
business" are used in management to distinguish between the continuation of the delivery of
goods or services and the adaptation of those same goods or services to accommodate
changing client demands - see trend. The term "management" can also refer to managers,
who are responsible for running a company. The question of whether management is an art or
a science is one that is up for debate. Management experts have offered several perspectives
on the essence of management.

Concept and application

Management as Science
The reason management is referred to as a science is because it has universally applicable
principles. For instance, the specialisation and division of labour principles are applicable
everywhere. A person develops expertise in a task if it is assigned to them regularly, whether
it be in their personal or professional lives, according to the principle. Luther Guelick claims
that management is already an area of knowledge and is evolving into a science because the
interrelationships at play are being methodically described, and new ideas are being put to the
test and enhanced by reason and real-world data. According to management professionals that
view management as a science, there are ideal managing techniques for different
circumstances. Additionally, they think that choosing the best course of action may be done
in a logical and impartial manner. These experts also promote the idea that in order to solve a
specific problem, managers should generate and test hypotheses in addition to adhering to
broad principles and ideas. For instance, if there is an issue with an employee's poor work
performance, specialised performance improvement strategies might be used, such as training
programmes and one-on-one interaction. In addition, early management researchers like FW.
Taylor, Frank and Lillian Gilberth, and numerous more offered scientific ways to manage
work.

Management as a Art
An organised way of doing anything is what is referred to as art. It takes skill to comprehend
how a given task can be completed. There is no one way to study management, according to
management professionals who see it as an art. They contend that personality and aptitude are
the sources of an individual's managerial skills. So it follows that managers are supposedly
born, not created. Additionally, specialists who viewed management as an art form argued
that when choosing a course of action, managers should consider the social and political
climate as well as their own body of knowledge. Let's take a look at the example from the
management as science instance, where there was an issue with a worker's subpar
performance at work. According to the artistic viewpoint, managers can resolve this issue by
depending on their own judgements and experiences. Reputable management gurus have
expressed their opinions on management as art.
The most prominent proponent of the idea that management is an art is Henry Mintzberg. He
claimed that management is an art because managers don't always respond in a predictable
way; instead, they employ their own social and political abilities to address issues and choose
the best course of action.
David E. Lilienthal: In a series of lectures titled Management: A Humanist Art, which were
published in 1967, he expressed his viewpoint on management as an art. He claims that
managers are artists because they must encourage and react to each person differently in
order to get the job done.

Conclusion
However, neither of the two perspectives—that management is a science or an art—can be
totally disproved. This is due to the fact that a substantial corpus of management literature
supports both of these viewpoints. As a result, management can be considered to include
elements of both science and art. Science supports the field of art since it provides the
foundational understanding of that art. Similar to how the application of practical knowledge
(art) to a variety of issues is necessary for science to be considered complete.It should be
recognised, nonetheless, that management is more related to behavioural science than it is a
natural or exact science. This is so that the impacts of any component affecting a
phenomenon can be studied in natural science while maintaining the effects of other elements
constant. The elements of science and art are both present in management. The  above
information make it very obvious that management is both a science and an art. It is regarded
as a science since it has a systematic body of knowledge that includes a variety of universal
truths. Management is also an art because it calls for a particular skill set that managers must
possess personally.Art is the application of information and skills that science provides. So,
the question, "Is Management an Art or Science?" has an answer. Management is both an art
and a science since it requires both scientific and artistic skills in equal measure to produce
the desired results.

Q3. Lemon Tree, a famous hotel chain in India is losing its market share to its peers. The
major reasons contributing to the same is that there is a lot of conflict in the organization
due to which correct and timely decisions are not being taken. The company has hired
you as a consultant to understand and solve this issue

a. Explain the different types of Conflicts that can arise in an organization?

ANSWER
Introducion
Serious disagreement and argument define conflict. Conflict is the result of a significant
dispute between two parties that they have not yet been able to resolve. People from many
cultures come together in an organisation and have conversations with one another. Different
cultures bring with them various perspectives, philosophies, values, and beliefs. Conflicts
could arise as a result, making it challenging for people to cooperate. Discrimination based on
caste, gender, and colour is a fairly common cause of conflicts in organisations. Sometimes
managers develop prejudices towards workers from the same cultural background. As a
result, other workers could experience bullying and morale loss, which is harmful to the
organization's long-term success. Additionally, workers can start looking for different
possibilities.In addition to this, there are numerous other disputes that can develop in
organisations as a result of cultural differences.
Concept and application
Types of conflicts are
1. Interpersonal conflicts: In an organisation, conflicts between two or more people can lead
to this sort of conflict. The people may come from the same department or from another
department. Three categories are used to classify interpersonal disputes, and they are as
follows:
a. Vertical conflicts: These disputes occur between a manager and employees.
and the people under him/her on numerous matters.

b. Lateral conflicts: Conflicts that occur laterally can occur between any two people who
are occupying the same space.
c. Diagonal conflicts:These conflicts happen between persons at different levels any
direct superior-subordinate relationship in different roles

2. Intrapersonal conflicts: These conflicts can occur between two people when their ideas,
values, or ideologies diverge. Conflicting people frequently exhibit irregular or irritated
behaviour. Their ability to function professionally suffers as a result.

3. Intergroup Conflicts: When various groups within an organisation collide, this sort of
conflict results. These groups can be formal or informal.  These disputes primarily involve
humans.within a team or division. Conflicts within a group impact the overall of the
collective group as a whole.
Conclusion
Conflicts, regardless of their nature, can seriously affect how individuals and organisations
perform. However, these confrontations can also have some beneficial effects, including an
improvement in people's performance owing to a competitive spirit, a reduction in
interpersonal distance, the explanation of long-standing issues, and the development of fresh
ideas.

b. Explain what strategies can be used by Lemon Tree to resolve these conflicts?
Ans The effectiveness with which these conflicts are managed will determine whether or not
they have a positive or negative influence. Long-term disregard for disputes by management
may have an impact on employee performance, which would then have an effect on the
effectiveness of the organisation. Organizations utilise a variety of strategies to handle
conflicts.
 The strategies that Lemon Tree can use to resolve these conflicts are
Avoiding: In this strategy, individuals steer clear of disputes by merely shifting the subject or
downplaying any circumstances that can cause a problem. This approach is used in
organisations where individuals or groups do not want to compete or argue with other
members.
Accommodating;In this strategy, a person puts the needs of others before their own, showing
great levels of consideration for those needs. The accommodating approach is used in
organisations where people are eager to build relationships with one another.

Competing: People with this style are naturally quite assertive and stand up for what they
believe in and what they desire. In disputes, these people like dominating the other party.
This approach can be utilised in urgent situations where choices need to be made quickly to
resolve disputes.

Collaborating:Using the collective approach, people or groups are prepared to cooperate in

order to realise shared objectives. This strategy is the most effective method for resolving
problems and frequently produces a win-win situation for an organisation.

Compromise: Using this strategy, people or groups try to partially satisfy themselves. People
who compromise tend to take a give-and-take strategy in an effort to get to mutually
acceptable agreements. Organizations use this approach when the opposing parties are
equally strong and a deadline is approaching.