Management Theory and Practice

Answer 1

Henri Fayol was one of the pioneers who emphasized the difference between managerial and
technical skills. He promotes the idea that "manager" is a profession in and of itself - one that needs
to be taught, researched, and developed. Suppose -- a group where everyone has the best technical
skills on earth, but no one has clear management methods. That means that skills without direction
will not produce any efficient results.

Good technical skills do not automatically make you a good manager. You also need a lot of non-
technical skills for planning, forecasting, decision making, process management, organizational
management, coordination, and control. You also need some reliable amount of non-technical skills
for forecasting, planning, decision making, organizational management, process management,
coordination, as well as control. All of these skills are taught in 14 management principles that help
managers understand how to effectively manage an organization.

Fayol 's 14 Management Principles -14 Henry Fayol 's management principles are a top-down
approach to help managers get the most out of employees that enable the business to run smoothly.
Let's take a closer look at them and understand them better.

1. Division of Labor - Among the management principles of Henry Fayol , the first is based on the
theory that says that if an employee is given a specific task to do, he will be sufficiently skilled in it,
and in as the task can be done. more efficient. This is in contrast to a multi-tasking environment,
where an employee is given multiple tasks to do at once. To effectively implement this principle,
look at each employee's current skill sets and assign them specific tasks that they can be proficient
at. In the long run, this will help them demonstrate their productivity, skills, and efficiency.

Fayol 's second principle of management states that a manager must have the necessary authority to
expect his followers to carry out his instructions without any "ifs & buts". If managers do not have
authority, they lack the ability to do any work. However, this authority must come with
responsibility. However Henri Fayol stressed that there must be a balance between responsibility
and authority. If there is more authority and less responsibility, the employees will eventually be
frustrated, vis -a- vis , if there is more responsibility than authority, the manager will fail.

3. Discipline - This principle of Henry Fayol shows that to effectively manage any organization,
discipline is necessary with true spirit. To discipline employees , effective managers must establish
a culture of mutual respect. There should be a set of organizational philosophies, rules, and
structures in place that everyone must follow. Slowing down or bending the rules should not be
tolerated in any organization. There must be good impartial judgment and management to achieve
this.

4. Unity of Command - According to this principle, there should be a clear chain of command in an
organization. Employees must be sure of the rule whose instructions must be followed.

5. Unity of Direction - This principle of management by Henry Fayol means that the work to be
done must be organized in such a way that the employees work together for the same purpose, by
following a plan, under the direction of a manager. Many types of activities should be broken down
for different sub-managers, but all these managers should all work towards a common goal under
the direction of the person who is in charge of the whole. program.
Management Theory and Practice

6. The Collective Interest should dominate the individual interest - According to this principle, the
general interest of the group should come before the personal ones. The interest of the organization
must not be jeopardized by the self-interest of any individual.

7. Remuneration - According to this principle, employees should get fair remuneration for their
work done. Any organization that underpays its workers will fail to motivate, rather the latter will
leave the organization. Also, there should be a structure in place for rewarding good performers and
motivating employees.

8. Centralization - Centralization refers to the proper concentration of power in the hands of the
authority, followed by a top-bottom management approach. No organization, in the modern context,
can be completely decentralized or centralized. Complete centralization means that people at the
bottom have no authority over their responsibilities. By the same logic, complete decentralization
symbolizes that there is no higher authority to control the organization. To effectively apply this
principle today, there must be a balance of decentralization and centralization.

9. Scalar Chain -A scalar chain means a clear chain of communication between superiors and
inferiors. Fayol suggested that in order to implement this in the workplace, it is necessary to create
an organization chart so that employees can see this structure.

10. Order - This principle indicates that there must be an organized placement of resources
(manpower, materials, money, etc.) at the right time and in the right place. It ensures the proper
utilization of resources, which are structured. Misplacement of any of these resources results in
mismanagement and organizational chaos.

11. Equity - This term covers the combination of justice and benevolence on the part of the
manager(s). It creates devotion as well as loyalty among employees towards the organization they
work for.

12. Stability of Personnel & their Tenure - According to this principle, an organization should work
to lower staff turnover instead of increasing their staff efficiency. New and old employees must also
ensure job security , otherwise it will lead to instability and ineffectiveness. There must also be an
effective and clear procedure for managing vacancies when they arise, because it takes time and
money to train new ones.

13. Initiative - This means that all employees should be encouraged to show initiative. When
workers have a say in how they prove themselves, they feel encouraged and respected.

14. Esprit de Corps or "Team Spirit" - The management should strive to bring morality,
cooperation, and unity to the employees.

All these 14 principles are a great source of strength in an organization. More than happy and
motivated employees are more likely to be productive and efficient and thus become an asset to the
organization.
Management Theory and Practice

Answers 2

It is a difficult issue whether Management is an Art or a Science. However, this will be a revealing
discussion to illuminate some points.

Management as Science - Science means a systematic body of knowledge related to a specific field
of study, which contains general facts and explains a phenomenon. It establishes a cause and effect
relationship between two or more variables. It also emphasizes the principles that govern their
relationship. Many scientific methods of observation and verification have been developed through
testing to arrive at these principles which have been further developed. Science is characterized by
the following main areas:

I) Generally accepted principles - Scientific principles reflect some fundamental truth about a
particular field of inquiry. These principles can be applied in all situations, in all places, and at all
times. For example -- the law of gravitation applies to all countries regardless of time and zone.
Management also follows some basic principles that apply to everyone. Example - Principle of
Unity of Command ie one person, one boss. This principle applies to all types of entities – neither
business nor business.

II) Experiment and Observation - Scientific principles are derived through research and scientific
investigation ie they are based on logic. This means that the principle that the earth revolves around
the sun has been scientifically proven. The principles of management are also based on scientific
observation and inquiry and not entirely in the opinion of Henry Fayol . They were developed
through the practical experiences and experiments of many managers. For example -- it has been
observed that fair remuneration of staff helps to create a satisfied workforce.

III) Cause and Effect Relationship - Scientific principles establish a cause and effect relationship
between different variables. Example- When metals are heated, they expand. Heating is the cause
and expansion is the result. Management decides on many plans according to their cause and effect,
so it also establishes a cause and effect relationship. For example-- if workers are given fair wages
and bonuses, they will work hard otherwise, like, if they are not treated fairly and equitably, the
result will be seen in the reduction of productivity in the organization.

IV) Validity & Predictability Test - The principles of scientific validity can be tested any number of
times or at any time. All of them have stood the test of time. Each time these tests yielded the same
result. Furthermore, by applying any scientific principles, future events can be predicted with
reasonable accuracy. Example -- Mixing oxygen and hydrogen always produces water. In
management, the principle of unity of command can be tested by comparing two people - one with
2 bosses and one with one boss. The performance of the 2nd case is better than the 1st case.
Management is a behavioral science. That's why, Ernest Dale called it a Soft Science.

Management as an Art - Art refers to the application of skill as well as knowledge to attempt about
the desired results. Art can be defined as the personal application of general theoretical principles
for achieving the best results. The following characteristics are essential to Art:

I) Practical Knowledge -- Every art commands practical knowledge, therefore, theory of learning is
not enough. It is very important to know the practical application of theoretical principles. For
example -- to be a good painter, one must not only have the idea of different brushes and colors but
different situations, designs, dimensions, etc. to use them with full appropriation. . A manager
Management Theory and Practice

cannot be successful only by obtaining the required academic management degrees/diplomas; he

should also know how to apply various principles in real situations by acting as a manager.

II) Personal Skills - Undoubtedly, the theoretical base may be the same for each artist, however,
each one has his method and style in his work and responsibility. That is why the level of quality
and success of the performance varies from one person to another. For example --. There are many
famous painters, but MF Hussain is known for his style statement. Similarly, some managers have
personalized their ability to manage as an art and have successfully carved their names. Every
manager has his way of handling things based on his experience, personality, and knowledge so
some managers are known as path breakers (like Steven Jobs, Aditya Birla, Rahul Bajaj, and other
luminaries to be named) while others are their followers.

III) Creativity - Every artist is blessed with some kind of elements of creativity in the line. That is
why he is constantly creating new or innovative pieces of art, which require a combination of
imagination and intelligence. It combines non-human and human resources in a beneficial way for
achieving the desired results.

IV) Practice for Perfection - Practice makes a person perfect. Every artist shines through constant
practice. Similarly, managers, initially, learn through the art of trial and error but applying the
principles of management for some time makes them perfect in managing work.

V) Goal Oriented - Every piece of art is result based, as it tries to achieve concrete results from
different inputs. Similarly, management is aimed at achieving predetermined goals. Managers use
various resources such as materials, men, money, methods and machinery to promote the growth of
an organization. Management also deals with shaping the behavior and attitude of people at work
and achieving the desired goals, because of which the company runs successfully.

VI) Effective working - Managers not only handle and manage all problems in every environment
so it is not a science, it is an art to manage every organizational problem in every environment.

Management as Art and Science: Management is not only an art it is also a science. All the points
given above establish that management combines aspects of both arts as well as science.

Management is considered a science because it has an organized body of knowledge with certain
categories of universal truth. While it is considered an art, management requires certain skills that
are possessed by the credibility of managers. Art deals with the application of knowledge and skills,
while science provides knowledge. To be successful in his profession, a manager must acquire the
knowledge of science and the art of applying it.

Answer 3a

Sometimes it appears that certain types of conflict are always with us at work. Any person in a
business who does not complete a deadline, the person is likely to face conflict with his boss. Next,
any employee turns against a colleague who he feels always undermines the former, and the issue
ends in conflict. And also, if someone disagrees with his co-manager about whether to represent a
client whose values s/he despises, conflict is also likely to arise. Three types of conflict are
commonly seen in organizations: 1) task conflict, then 2) relationship conflict, and 3) value conflict.
Harvard Education shed some light on this.
Management Theory and Practice

1) Task Conflict -- Usually this conflict involves concrete issues connected to employees' work
tasks and may include disputes related to management of work expectations, allocation of
resources, policies , differences of opinion on methods, and interpretation and judgments of facts.

Task conflict, of these 3 types , is probably the simplest to resolve. But this conflict often happens
to have deeper roots and is more complicated than it looks at first glance. In this example, co-
workers arguing over which of them gets the chance to attend an out-of-town conference may lead
to a deeper conflict based on a sense of rivalry.

Organizational leader intervention often resolves task conflict, benefiting the organization.
Managers can focus on how to identify deeper interests beneath party positions, by serving as de
facto mediators. This is done through active listening, which is repeating what you understand
through listening, just to confirm your understanding, engage in questioning, and asking deeper
questions to explore deeper concerns.

2) Relationship Conflict -- This conflict stems from differences in matters of taste, personality,
style, and even conflict styles. People who don't usually meet 'in real life' in their organizations
often come together and therefore try to understand each other. Therefore, it is not surprising that
relationship conflict would be common in the organization in this situation. Let's say you feel a
long-term simmering tension with a partner, it could be like a difference in personality, work
assignments, or some other issue. You can invite the colleague to lunch or set up such a place and
try to get to know him better, before turning to a manager.

3) Value Conflict -- This conflict can arise from fundamental differences in values and identities,
which can be any differences in behavior, ethics, politics, religion, and other deeply held beliefs. As
usual, discussing religion and politics is often prohibited in organizations, decisions, and policies,
such as dealing with a client who has ties to a corrupt government or whether to implement an
affirmative action program, and other elements of contention/ values may arise in the work context.

If all of the above has been discussed, it can be concluded that different types of conflicts may arise
in an organization because of which the correct and timely decisions are not made. Example -
Lemon Tree, the case study organization here.

Answer 3b

Before explaining what strategies Lemon Tree can use to solve their conflicts, let me mention the
last 3 years financial situation of the Hotel chain. According to the consolidated financial results
(Value Stocks nd ), the total revenue of the Hotel Chain decreased from 203.47 crores (October
2019–December 2019) to 177.28 crores (January 2020–March 2020). LTH should be able to ride
out the difficulties that have been hit by the COVID. The hotel chain must keep in mind the
different types of stakeholders that will be affected by the scenario. Considering the overall
uncertainty, LTH is not at all certain about the severity of COVID and its severity.

The above scenario forced Keswani and the rest of the top management team to do some scenario
planning. A conflict is a situation where two parties have conflicting or conflicting opinions or
views. In general, conflicts are disagreements between individuals or groups. There are many
projects, employees, departments, or even many methods of doing a task in any business
organization. Sometimes, this diversity can lead to situations where there is a kind of contradiction,
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and this is known as organizational conflict. The conflict in the organization can arise due to
different reasons such as - different opinions, opposing goals, or incompatibility in working style.

In the current case study of the company, Lemon Tree is going through some issues due to
organizational conflicts. In this hotel chain, the possible conflicts should be -

1) Misunderstanding of the task - This indicates that there may be different views among the
employees related to how the task should be done or the goal of the task. Another common type of
conflict can be conflicts due to unclear job roles that make it difficult to understand who is
responsible for what role and also how the organization holds any person accountable for anything.
work. Unclear responsibilities not only create confusion among workers but also affect their overall
performance.

2) The conflict between Management and employees -- If the management and employees here are
not on cordial terms between them, instead, there will be differences between them, which will lead
to interpersonal conflicts in Lemon Tree. Apart from this, the ineffective coordination between
them can also be a reasonable reason for the delayed decision-making process in the organization.

3) Departmental differences - As the hotel chain Lemon Tree has many departments and on some
occasions, there may be a situation where two or more departments have conflicting interests and
objectives. This proves that the business is trying hard to solve internal issues.

While concluding, it is relevant to discuss one of their many claims about their incompetence, as
published in Point no26, Page no 28. Our inability to effectively manage our expansion and
implement our strategy in growth could harm our business, results of operations, and financial
condition. And the publisher is none other than SEBI. And in closing, it is worth mentioning that
the company claimed, in 2017 when the hotel group was ranked the fourth "Best Company to Work
For" in India and was the only hotel company in the top 10.