Management Theory and Practice

1. You are hired as a trainer by Sachin Ethanol, a newly set up 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.

SOLUTION

Introduction

Henri Fayol was one of the pioneers who emphasized the difference between managerial and
technical skills. He stressed the idea that "manager" is a profession in itself, one that is taught,
studied and developed. For example, a team where everyone has the best technical skills on the
planet, but no one has a clear management style. This means that undirected skills do not produce
efficient results.
Great technical skills don't automatically make you a great manager. You will also need some non-
technical skills for planning, forecasting, decision making, process management, organizational
management, coordination and control. It also requires reliable non-technical forecasting, planning,
decision-making, organizational management, process management, coordination, and control
skills. All of these skills are taught in 1
Management Principles that help managers understand how to run their organizations effectively.
14 Principles of Henry Fayol’s Management

Principles of Management by Henry Fayol is a top-down approach designed to help

managers bring out the best in their employees to keep their businesses running smoothly.
Let's take a closer look at them and fully understand them.

1. Division of Labor -- The first of Henry Fayol's principles of management is that when an
employee is assigned a particular task, he or she should be properly qualified for that task
and perform the task more efficiently. It is based on the theory that the success of This is in
contrast to a multitasking environment where one employee is given too many tasks at once.
To effectively apply this principle, examine each employee's current skills and assign them
specific tasks that they can perform well. In the long run, this helps them demonstrate their
productivity, dexterity, and efficiency.
2. Authority - Henry Fayol's second principle of leadership states that managers must have
the necessary authority to tell employees to carry out instructions without "ifs and buts." If
managers lack authority, they lack the ability to get the job done. However, with that power
comes responsibility. But Henri Fayol stresses that there should be a balance between
responsibility and authority. Ultimately, more authority and less responsibility irritates
employees, and more responsibility than authority irritates managers.

3. Discipline - This principle of Henry Fayol reflects that effective organization requires
discipline with a true spirit. To maintain employee discipline, effective managers must build a
culture of mutual respect. There must be a set of organizational philosophies, rules and
structures that everyone must follow. Relaxing or bending the rules should not be allowed in
any organization. Achieving this requires fair and unbiased evaluation and oversight.
4. Unity of Command -- This principle requires an organization to have a clear chain of
command. Employees usually need to know whose instructions they should follow.
5 Unity of Direction – Henry Fayol's management principle is to organize the work to be
done so that by sticking to a plan and being under the auspices of one manager, employees
can work in synchronicity toward the same goals. says it needs to be transformed. Some types
of activities should be broken down into various sub-managers, but all these managers should
work toward a common goal under the direction of only the person responsible for the overall
program.Collective
6 Interest must reign over individual interest -- According to this principle, the overall
interest of the team needs to take precedence over personal ones. The interest of the
organization should not be jeopardized by any individual's self-interest.

7. Compensation - According to this principle, employees should receive fair wages for their work.
Organizations that do not pay their employees well are unable to motivate their employees and
leave them. You also need mechanisms to reward good performance and motivate your employees.
8 Centralization - Centralization means concentrating appropriate authority in the hands of power
followed by a top-bottom management approach. In modern conditions, no organization can be
completely decentralized or centralized. Full centralization means that the lowest level people have
no authority over their responsibilities. Using the same logic, full decentralization symbolizes the
absence of higher powers controlling the organization. To be able to use this principle effectively
today, we need a balance of decentralization and centralization.
9. Scalar Chain -- A scalar chain means a clear communication chain between a superior and
subordinates. Fayol suggests that you should create an organizational chart to implement it in your
workplace so that your employees understand this structure.

10. Order - This principle states that resources (personnel, materials, funds, etc.) must be made
available organizationally at the right place at the right time. This ensures the correct use of
structurally designed resources. Misplacement of any of these resources can lead to mismanagement
and organizational disruption.
11. Fairness - This term describes a combination of fairness and kindness on the part of
management. This creates dedication and loyalty to the organization to which the employee
belongs.
12. Staff Stability and Tenure – According to this principle, organizations should work to
reduce staff turnover rather than maximizing staff efficiency. Job security must also be
guaranteed for both new and old employees. Training new talent is time-consuming and
costly, so you also need an effective and clear way to deal with vacancies when they arise.
13. Initiative - This means that all employees should be motivated to show initiative. When
workers have a say in how best to prove themselves, they feel empowered and respected.

14. Esprit de Corps or “Team Spirit” -- Management should strive to instill morale,
cooperation and unity among its employees.
Conclusion -- All these 14 principles are a great source of strength in an organization. Over &
above happy and motivated employees are more likely to be productive and efficient and thus
become an asset to the organization.
2. The newly set up management team is divided in their deliberation on a certain topic and
requires 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?

SOLUTION

Introduction
It is a tricky issue whether Management is an Art or a Science. Still, it would be a revealing
discussion to enlighten some points.

Management as Science - Science means a systematic body of knowledge related to a particular

field of study, containing general facts and explaining phenomena. Establish causal relationships
between two or more variables. It also highlights the principles that govern their relationship. To
realize these principles, several scientific observation and verification methods have been tested and
further developed. Science is characterized by the following key characteristics:
I) Generally Accepted Principles - Scientific principles reflect some fundamental truth about a
particular field of research. These principles can be applied in any situation, anywhere, anytime. For
example, the law of universal gravitation applies to all countries regardless of time or location.
Management also follows some universally applicable basic principles. Example – Principle of
Unity of Command i. H. Man, boss. This principle applies to all types of businesses, not to
businesses or businesses.
II) Experimentation and Observation - Scientific principles are derived through research and
scientific investigation. So it's based on logic. This means that the principle that the earth revolves
around the sun is scientifically proven. The Governing Principles are also based on scientific
observations and research, and not solely on the opinion of Henry Fayol. They were developed
through the practical experience and experimentation of numerous managers. For example, it has
been observed that paying employees fairly can help create a happy workforce.
I) Causality – The principles of science establish causality between various variables. Example:
Metal expands when heated. Warming is the cause, expansion is the result. Causality is also
established because management makes many planning decisions based on causality. For example,
if workers are given fair wages and bonuses, they will work hard otherwise. For example, if we are
not treated fairly and equitably, we see organizational productivity decline as a result.
II) Testing Validity and Predictability – Principles of scientific validity can be tested at any time
and again. They all stand the test of time. These tests give the same results every time. Moreover,
future events can be predicted with reasonable accuracy by applying scientific principles. Example -
A mixture of oxygen and hydrogen will always produce water. In management, the unit of
command principle can be tested by comparing two people. The performance of the second case is
better than the first case. Management is a behavioral science. This is why Ernest Dale called it soft
science.
Management as Art -- Art means the application of skill and knowledge to achieve desired results.
Art can be defined as the personal application of general theoretical principles to achieve the best
possible result.
I) Practical Knowledge - Learning theory is not enough, because all art requires practical
knowledge. Knowing the practical application of theoretical principles is very important. For
example, to be a good painter, you need to fully appropriate and use different situations, designs,
dimensions, etc., as well as different brushes and color ideas. A manager can never be successful
just by having the required academic management degree/diploma. He must also have known,
acting as a manager, to apply different principles to real situations.
II) Personal Skills -- While the theoretical underpinnings are undoubtedly the same for all artists,
each has their own approach and style to their work and responsibilities. As such, service quality
and success varies from person to person. example - . There are several famous painters, but M.F.
Hussein is characterized by his style statement. Similarly, some managers have succeeded in
shortening their names by personalizing their executive acumen as an art. Every manager has their
own way of managing things based on experience, personality and knowledge. As such, some
managers are known as trailblazers (such as Steven Jobs, Aditya Birla, Rahul Bajaj and a few other
celebrities).
III) Creativity -- All artists are endowed with some element of creativity. So he/she is always
creating something new or innovative artwork that requires a combination of imagination and
intelligence. Combine non-human and human resources in useful ways to achieve desired results.
IV) Practice for Perfection -- Practice makes a person perfect. All artists shine through constant
practice. Similarly, managers initially learn through trial-and-error techniques, but over time apply
management principles that make them perfect for job management.
V) Goal Oriented -- All works of art are goal oriented because they strive to produce tangible
results from various inputs. Similarly, management aims at achieving pre-set goals. Managers use
various resources such as materials, people, money, methods and machines to help the organization
grow.
Effective working- Management is also concerned with shaping people's behavior and attitudes in
the workplace to achieve the desired goals that make the company successful. This is not a science,
but the art of managing organizational issues in any environment, as well as managing all issues on
your behalf.
I)
Management as an art and science
 Management is not only an art, it is also a science. All of the above show that management
combines features of both art and science.
Conclusion
Management is considered a science because it has an organized body of knowledge containing
several categories of universal truth. Though considered an art, management requires certain skills
with managerial credibility. Art deals with the application of knowledge and skills, science
provides knowledge. To be successful in business, leaders must master the knowledge of science
and the art of applying it.

3. Lemon Tree, a famous hotel chain in India is losing its market share to its peers. The major
reason 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. (5 Marks)

SOLUTION

Introduction
At work, some kind of conflict can always seem to be around us. Anyone who doesn't meet
deadlines in a company can get into trouble with their boss. Each employee then lashes out at
a colleague who, in his opinion, is constantly undermining the former, and the matter ends in
conflict. Again, conflicts can also arise when someone disagrees with a colleague about
representing a client who disregards their values. His three types of conflicts are commonly
found in organizations: 1) task conflicts, 2) relationship conflicts, and 3) value conflicts.
Harvard education sheds light on this.
1) Task Conflicts – These conflicts often involve specific issues related to employee work
assignments, including disagreements regarding workplace expectations management,
resource allocation, policies and procedures. , and disputes relating to the interpretation and
determination of facts. Of these three types, the
task conflict is probably the easiest to resolve. But this conflict is often deeper-rooted and
more complex than it seems at first glance. For example, colleagues arguing over who gets the
chance to attend an out-of-town meeting may capitalize on deeper conflicts rooted in rivalry.
 Organizational leader intervention can often resolve task conflicts to the benefit of the
organization. The administrator can act as a de facto mediator and focus on identifying the
deeper interests behind the parties' positions. This is achieved through active listening. H.
You can explore deeper concerns by repeating what you heard and recognized just to check
understanding, asking questions, and asking deeper questions.
2) Relationship Conflict -- This conflict arises from differences in tastes, personalities, styles,
and even conflict styles. People who would not normally meet in a real-life organization are
often thrown together to get along. It is therefore not surprising that relationship conflicts in
this context are common in organizations. Let's say you've been feeling tense with a colleague
for a long time because of personality differences, job duties, or other issues. You can take a
colleague out to lunch or lay a foundation for a colleague and try to get to know him or her
better before approaching your manager.
3) Value Conflict - This conflict can arise from fundamental differences in values and
identities, such as differences in ethics, norms, politics, religion, and other deep-seated beliefs.
As usual, discussion of religion and politics in organizations, decisions, and policies is often
taboo. Values can arise in the context of work.
Conclusion
After considering all the points above, we can conclude that there are many types of conflicts
that can arise within an organization. Example – Lemon Tree, a case study organization.

b. Explain what strategies can be used by Lemon Tree to resolve these conflicts. (5 Marks)

SOLUTION

Introduction

Before I explain what strategies Lemon Tree can use to resolve conflicts, let me quote the hotel
chain's financial situation over the past three years. According to its consolidated financial results
(Value Stocks n.d.), the hotel chain's total revenue fell from 20.3
7 billion (October 2019 - December 2019) to 17.728 billion (January 2020 - March 2020). LTH has
had to overcome the challenges faced by COVID. The hotel chain had to consider different types of
stakeholders affected by the evolving scenario. Given the general uncertainty, LTH was completely
unsure of the severity of COVID and its severity.
 The above scenario required Keswani and the rest of the top management team to develop a
scenario plan. A conflict is a situation in which two parties have conflicting or conflicting opinions
or views. Conflicts are generally disagreements between individuals or teams. Business
organizations have multiple projects, people, departments, or even multiple ways to accomplish
tasks. This diversity can lead to situations where some kind of disagreement exists, known as
organizational conflict. Organizational conflicts can arise for many reasons, including: B. -
Differing opinions, conflicting goals, or incompatibility of working styles.
In this company's current case study, Lemon Tree has some problems due to organizational
conflicts.
1) Task Discrepancies - This means that staff may have different views on how to accomplish a
task or what the task is for. is shown. Another prominent type of conflict can be due to job
ambiguity, understanding who has what role and how the organization holds individuals
accountable for each job. becomes difficult. Ambiguous responsibilities not only create confusion
among employees, but also negatively affect overall performance.
2) Conflicts between management and employees -- When management and employees are not
friendly, instead disagreements arise, leading to relationship conflicts at Lemon Tree. Apart from
that, ineffective coordination between them can also be a reasonable cause of delays in the
decision-making process within the organization.
3)Because of divisions, two or more divisions may have competing interests and goals. This shows
that the company is working hard to solve internal problems.
Conclusion
In conclusion, it is important to refer to her one of many confessions of her incompetence,
contained in item 26 on page 28. Our inability to effectively manage our expansion and execute our
growth strategy could adversely affect our business, operating results and financial condition by
h. And the publisher is none other than SEBI. And finally, it should be mentioned that in 2017 the
hotel group was ranked as the
th best place to work in India and claimed to be the only hotel company in the top 10. There is.