1.

ANSWER
Management can be viewed as an effort made for accomplishing the organizational goals,
objectives and vision through planning, organizing, staffing, directing and controlling all
the business activities accordingly. These principles set the guidelines and standardize the
management’s course of action to run a business organization effectively and efficiently. The
principles of management refer to the fundamental truth which is generally applied to the
everyday business operations for ensuring effective management of the organization.

Features of Principles of Management

The principles of management are identified facts which are developed through individual
experiences and can be applied to all kinds of business entities. To know more about these
principles, let us go through its following characteristics:

 All are Equally Important: Every management principle holds equal importance in the
business organization.
 Universally Applicable: These principles can be applied to any kind of organization,
whether large or small or belongs to any industry.
 Regulates Human Behavior: The application of the management principles helps the
organization to monitor and control the behavior of the personnel.
 Flexible in Nature: The applicability of these principles varies from organization to
organization.
 Develops Cause and Effect Relationship: The principles of management establishes a
relationship between every action and its consequences in the short and long run
One classic theory on the principles of management was written by Henri Fayol in his 1916
book, "Administration Industrielle et Générale”. By placing the focus on managerial
skills over technical skills, these principles give us a foundation for what we call “good
management” Henry Fayol’s 14 principles of management look at an organization from a top-
down approach to help managers get the best from employees and run the business with ease.
Let’s take a look at them and understand them in detail.

1. Division of work:
It refers to dividing the work into different individuals. Fayol recommended that work of all
kinds must be divided and allocated as per competence, qualification, and experience of
individuals. According to Fayol, “Division of work intends to produce more and better work
for the same effort. Specialization is the most efficient way to use human effort.”

For example, a bank has several operations, like collection and payment of cash, issue of
cheque books, etc. All those activities are divided and allocated to a different person in the
bank. This method of doing work also improves their efficiency and makes them experts in
their field.

2. Authority and Responsibility:

According to this principle, there should be a proper balance between authority and
responsibility. Authority is the duty, which a subordinate is expected to perform. Authority
and responsibility go hand in hand. Authority without responsibility leads to irresponsible
behavior, while responsibility without authority will make a person ineffective. According to
Fayol, “Authority is the right to give orders and obtain obedience, and responsibility is the
corollary of authority. The two types of authority are official authority, which is the authority
to command, and personal authority, which is the authority of the individual manager.”

For example, if a foreman is given the responsibility to produce 50 units per day, then he must
be given the required authority to achieve this target. If he is not given authority to draw raw
material from the stores, then he cannot be blamed.

3. Discipline:
Discipline refers to the obedience to the rules and regulations of the organization. Discipline
requires good supervision at all levels of management. According to Fayol, good supervision
at all levels, clear and fair rules, and a built-in system of penalties will help to maintain
discipline. It is a must for all levels of management.

For example, employees must be disciplined to work effectively and efficiently to meet their
promises of bonuses, increments, and promotions. Its smoothness systemizes the functioning
of an organization by providing better relations between management and employees.

4. Unity of Command:

According to this principle, each subordinate should receive orders and be accountable to only
the superior. No person can serve several masters at the same time. If an employee gets orders
from two superiors at the same time, then the principle of unity of command is violated, and
he will find it very difficult to decide who he has to obey first. So, to avoid confusion,
employees should receive an order from one superior.

For example, there is a salesperson who is asked to clinch a deal with a buyer and he is
allowed to give 12% discount by the marketing manager. But the finance department tells him
not to offer more than a 6% discount. In this case, there is no unity of command, which will
lead to confusion and delay.

5. Unity of Direction:
It implies that there should be one head and one person for proof of activities having the same
objectives. According to this principle, all the activities should be carried under the direction
of one head, and there should be effective coordination in all the activities. This principle
ensures unity of action and avoids unnecessary duplication of work.
For example, if an organization has four departments for different activities, then each
department must be directed by one superior, and its employees should give their whole
efforts to achieving the plan of the organization. Each division should
have its in charge, plans, and execution resources. There should not be an unnecessary
duplication of efforts and a waste of resources.

6. Subordination of Individual Interests to General Interests:

According to this principle, the interest of the organization as a whole must prevail ov er the
interest of the individual. It must be the interest of the organization that should be placed
above the interest of employees. It is the duty of the manager to reconcile them. If
reconciliation is impossible, then general interest must supersede individual interest. A
manager must sacrifice his interest. Manager can achieve their objectives when the
organization recovers from financial crises.

For example, there is a company that wants maximum output from its employees by providing
less salary. There are employees on the other hand who want to get the maximum salary while
working the least. In both situations, the interests of the company will supersede the interest
of any one individual. As the interests of the workers and stakeholders are have more
importance than the interests of any one person.

7. Remuneration of Employees:
According to this principle, remuneration should be fair and satisfactory to both employees
and the organization. This principle leads to harmonious relations in the organization. Fair
remuneration should be determined based on government rules related to wages, financial
position of the organization, nature of work, and cost of living. Employees should be paid
reasonable wages for their service, which should provide them with a moderate standard of
living.

For example, if an organization earns higher profits, then it should share some of its part with
the employees in the form of bonus.

8. Centralization and Decentralization:

Centralization refers to the concentration of authority at the top level, and decentralization
means distribution at all levels of management. According to this principle, there should be a
proper balance between centralization and decentralization. The degree of centralization and
decentralization depends on various factors, such as experience of the employees, ability of
subordinates, size of the organization, etc. Too much centralization lead to loss of control of
top management. Therefore an optimum balance should be maintained according to the need
of the organization.

For example, Authority to take vital decisions must be given to the top management, whereas
authority related to operational activities must be given to the middle and lower level.

9. Scalar chain:
According to this principle, there is a scalar chain of authority and communication that moves
in a straight line from the superior to the lowest subordinate. Henri Fayol permitted a shortcut
of chain in case of urgency known as gang plank. Gang plank allows direct communication
between two employees of the same level.

.
For example, E wants to communicate with I for some important work. The message should
orderly move from E to D, then to C, B, A, and then down from A to F then to G, H and
finally to I. This will take lots of time so to avoid this delay in work; Fayol suggested this
concept of Gang Plank. In this concept ‘E’ can communicate directly with ‘I’ on an urgent
matter, the gang plank allows two employees of the same level to communicate directly with
each but each must enforce to its superior.

10. Order:
According to this principle, there should be a proper place for everything and everyone. Henri
Fayol emphasized on two types of order: material order and social order. In material order,
there must be a plan for everything. It ensures fix a place for various material tools. Where as
in social order, there must be an appointed place for every employee, which ensures a proper
and fixed place/cabin for each employee.
For example, there should be specific place for foremen in a factory so that the work can be
done easily.

11. Equity:
According to this principle, there should not be any discrimination amongst the employees
based on religion, caste, language, or nationality. Equity ensures coordinated relations
between superior and subordinate. It leads to the smooth and successful working of the
enterprise. It improves satisfaction and motivation of the employee, creating relation between
manager and employees.

For example, workers doing similar jobs in the same organization should be paid same wages
irrespective of their sex, caste, religion and language.

12. Stability of personnel:

According to this principle, there should be proper effort to achieve stability and continuity of
employment. Fayol said that employees should be kept in their position for a reasonable time
to show result stability creates a sense of belonging, and workers are encouraged to improve
their quality of work. This will increase the efficiency of employees, and it will also increase
the reputation of the organization. Unnecessary labor turnover creates an atmosphere of
disbelief. Continuous changes in employees disturb the working environment.
For example, new employees must be given ample time to adapt to new culture and
environment of the workplace.

13. Initiative:
According to this principle, workers should encourage and should be given an opportunity to
take initiative in making and executing the plan. Henri Fayol suggested that employees at all
levels should be encouraged to take initiative in work. It motivates employees to work better
and to take more interest in the organization. The initiative is a powerful motivator of human
behavior and a source of strength for the organization. This increase the mental growth and
feeling of belongingness in employees. It increases the commitment of employees toward the
organization. Lack of initiatives may create an atmosphere of non-cooperation.

For example, organizations must have an employee suggestion system so that they have
feeling of belongingness.

14. Esprit De Corps:

According to this principle, management should take reasonable steps to develop a sense of
belongingness and a feeling of team spirit amongst employees. In order to achieve the best
possible result, individual and group efforts need to be integrated. Production is teamwork and
it requires the full support of all members. For this purpose, a manager should replace ‘I’ with
‘We’ in his conversations to bring a team spirit among the employees. This will develop an
atmosphere of mutual trust. It will help in achieving group goals, leading to cordial relations
between management and workers.

For example, authority and responsibility meant empowering managers, but now it means
empowerment of employees because of flat organizational structures that are gaining ground.

Henri Fayol highlighted the difference between technical and managerial skills. He proposed that
“manager” is a profession in and of itself one that needs to be researched, taught, and developed.
Imagine a team where everyone has the best technical skills in the world, but no clear
management practices. Surely, skills without direction won’t produce any efficient results. Good
technical skills don’t necessarily make you a good manager. You would also need a number of
non-technical skills for planning, forecasting, decision-making, process management,
organization management, coordination, and control. Short insight on all these skills are taught in
the 14 principles of management to understand how to effectively run an organization

2. ANSWER
Management is the process of planning and organising the resources and activities of a business
to achieve specific goals in the most effective and efficient manner possible. Efficiency in
management refers to the completion of tasks correctly and at minimal costs. Effectiveness in
management relates to the completion of tasks within specific timelines to yield tangible results.
The controversy with regard to the nature of management, as to whether it is an art or a science,
is very old. This controversy, however, is not very much in the air now though the controversy is
yet to be settled. It is to be noted that the learning process in art differs from that of science.
Learning of art involves its continuous practice while learning of science basically involves the
assimilation of principles.

Much of the controversy of management being as art or science is on account of the fact that the
earlier captains of industry and managers have used intuition, hunches, commonsense, and
experience in managing organizations. They were not trained professional managers, although
they were very brilliant and had developed commonsense through which they managed well.
However, commonsense and science differ considerably in solving the problems.

Management as an Art
Art is defined as the use of skills to bring a desired result. Skills refer to one’s proficiency to do a
specific work. Thus, art has the following features:

1. Practical Knowledge
Knowledge refers to possession of facts and techniques of a particular field. Knowledge can be
acquired through study and/or practical experience. Generally, in art, more emphasis is given on
acquiring knowledge through practical experience. In management, knowledge is acquired both
through study and experience. Thus, management is an art.
2. Personalized Application of Knowledge
In art, there is personalized application of knowledge to achieve the desired results. This is
possible because the same set of results can be achieved through a number of alternative ways.
This is done in management too; each manager has his own way of achieving results. Thus,
management is an art.

3. Improvement through Continuous Practice

In art, improvement is made through continuous practice. This practice eliminates those activities
which are not relevant for achieving the desired results and improving those activities that are
relevant. Through this way, the person engaged in any art tends to move towards perfection. This
is exactly done in management.

4. Situational Application
Art has situational application. This implies that an art which is appreciated in one situation may
not be appreciated in another situation. This is true for management too. Thus, a particular
management practice which is quite effective in an organization may not be effective in another
organization because of change in situational context. Further, in the same organization,
management practices may change over the period of time because of change in contextual
variables.

5. Emphasis on Creativity
Art puts emphasis on creativity through which new things or ways of working are created. This
is done in management too; managers create new products, new ways of working, new means of
financing, new ways of marketing and so on.

All of this indicates that management is an art.

Management as a Science

Science is a body of systematized knowledge generated through logical consistency, critical

evaluation and experimental study. Thus, science has the following features
1. Systematized Body of Knowledge
Science is a systematized body of knowledge. Its principles are based on cause-effect
relationship, that is, a particular factor has been caused by what factor can be explained in a
definite way. For example, if you throw a ball up, after going upward the ball will ultimately
come back on the ground because of earth’s gravitational force. In management, there is lack of
such a cause-effect relationship; cause-effect relationship is defined in flexible way, not in
definite way. Thus, management is not a true science.

2. Principles Based on Experimentation

In science, principles are evolved on the basis of experiments conducted in laboratories. Such
principles are tested again and again for final approval. In management, this is not done in all
cases; in many cases, management principles are based on personal observations and
experiences. Though experiments are conducted under controlled conditions, their findings are
not tested like science. From this point of view, management is not a true science.

3. Verifiable Principles
Scientific principles can be verified by any one. Such verification will give the same results
again and again. Management principles are not verifiable in many cases. In fact, in many cases,
it is difficult to appreciate the bases on which management principles have been evolved. Thus,
management is not a true science.

4. Universal Application
Principles of science have universal application, that is, they remain true irrespective of the
conditions in which these are applied. As against this, management principles are situation
bound. It implies that a management principle which works well in one country may not work
equally well in another country. This is because of situational differences between the two
countries. Further, a management principle which works effectively in one organization may not
work effectively in another organization of the same country. Thus, management cannot be
called ‘true science’. The above discussion shows that management is not a true science.
Therefore, management is called an ‘inexact science‘ or ‘pseudo-science‘.
Management: Both Art and Science
Thus, to be a successful manager, a person requires the knowledge of management principles and
also the skills of how the knowledge can be utilized. Absence of either will result in inefficiency.

A comparison between art and science is presented in the below table which suggests that a
manager requires both aspects of management to be successful.

Comparison between art and science as used in management

Art Science
Advances by practice Advances by knowledge
Feels Proves
Guesses Predicts
Describes Defines
Opines Measures
Expresses Impresses

It can be seen that management uses both scientific knowledge and art in managing an
organization. As the science of management increases so should the art of management. A
balance between the two is needed. Neither should be over-weighed or slighted.

Some feel that further gains in science of management will restrict art more and more. This is
true to a limited extent only. The fact remains that to be useful, knowledge of science must be
applied, that is, art must be present. Therefore, the old saying that ‘knowledge is power‘ is
partially true.
The correct saying should be ‘applied knowledge is power‘. People having abundant knowledge
may have little use if they do not know how to use knowledge. This is particularly true for
management which is a situational phenomenon.

3.a. ANSWER
Conflict is defined as a disagreement that results in negativity between two or more people. This
disagreement or dispute may be related to anything. The important part is both of the parties do
not agree with each other on a certain point and start to prove how they are correct. This is what
gives rise to conflict. We encounter conflicts every day in our lives. The intensity of those
conflicts varies. A small disagreement between two people related to a single topic is a
widespread phenomenon. In an organization, individuals belonging to different cultures come
together and engage in dialogue with each other. Various cultures bring different beliefs,
ideologies, values, and perceptions. This may result in conflicts and makes it difficult for
individuals to work together.It is often observed that the culture of individuals shapes their
personality and is reflected in their behaviour. The culture also influences the organization's
policies and its attitude toward employees. Therefore, it becomes imperative for the organization
to develop such a corporate culture that people from different backgrounds can gel with each
other works harmoniously.

A very common example of conflicts arising in organizations is due to discrimination on the

basis of colour, sex, and caste. Sometimes managers become biased for employees who belong
to the same cultural background. As a result, other employees may feel victimized and lose
morale, which is detrimental to the growth of the organization in the long term. Moreover,
employees may begin to look for other opportunities.

Apart from this, there are many other types of conflicts that may arise in organizations due to
cultural differences.
Types of Conflicts in an Organization

1) Interpersonal conflicts

Interpersonal conflict means the conflicts between two individuals. Interpersonal conflicts
happen when people have a different personality, opinion, and even cultural background. In a
large organization, there are high chances of the occurrence of interpersonal conflicts, because of
the large number of people working together.
However, interpersonal conflict can take place because of misunderstanding and
miscommunication also. In the work environment, it has been usually seen that elder people find
it difficult to get along with the people of the new generation. Moreover, their way to work and
to approach any problem is quite contrasting, which causes conflicts among them

One another common example is when employees become friends at the workplace, and a crack
in their personal relationship creates conflicts in the work environment. Another potential
example of conflicts between two individuals is that when a male employee has to take orders
from a female supervisor.

They always find it difficult to get along with each other, Because a male employee does not
believe in the capabilities of the female supervisor. Evidently, these types of conflicts are natural
to happen and resolving them correctly can help in the personal growth of the employees.

These types of conflicts must be resolved as soon as possible because they can get too critical.
There are various ways to alleviate these types of conflicts such as sitting with the human
resource manager and settling the issue, by providing diversification training to staff or by
imposing certain “standard of conduct” at the work environment.

2) Intrapersonal conflicts

These types of conflicts occur within an individual. Intrapersonal conflicts are more complex and
difficult to identify than interpersonal conflicts. Because these types of conflicts take place in an
individual’s mind due to his \ her values, emotions, principle and thoughts.

The complexity of these types of conflicts varies from easy decisions such as deciding the lunch
menu to major life decisions choosing the career path. The person who suffers from intrapersonal
conflict finds it very difficult to concentrate on the work.
Therefore, lack of concentration and lack of zeal to participate in work place’s activities lead to
reduced productivity, which is destructive for the progress of an organization. Moreover,
intrapersonal conflicts cause anxiety and restlessness in an individual.

A person who is suffering from this conflict should seek professional help before wasting any
time. Otherwise, the person should share his/ her feeling with friends or colleagues.
Communication is a supported solution to solve such a situation. Organizations should provide
psychological aid to all of its employees to deal with these types of conflicts.

3) Intragroup conflicts

These types of conflicts take place among team members. Discordancy and misunderstanding
between these individuals are the main causes of intragroup conflicts. Tension arises in the team
when team members have different personalities, values or idea.

For example, intragroup conflicts arise when one team member gets the promotion or get
recognized and others don’t accord with the decision. This kind of situation may cause
uneasiness in the group. Sometimes, conflicts are beneficial to get better results within a group
which is the only objective of the team.

In case of serious conflicts, the team leader should seek the help of different parties. However,
these types of conflicts can be avoided by selecting team members carefully and by providing a
fair chance to each team member.

Having a one-on-one conversation with an individual team member is one of the ways used to
settle this conflict. Alternatively, the entire team can interact with the team leader to express their
dissatisfaction. As long as it is done cordially and formally and care is taken that this discussion
does not turn into verbal arguments, these types of conflicts can be easily solved.
4) Intergroup conflicts

These types of conflicts happen among the two different groups within an organization. These
types of conflicts take place because of the different goals, interests or opinion among the
different departments. For instance, conflicts can occur between marketing and customer support
department. These types of conflicts can arise enmity among the people.

Hence, the office becomes an unsuitable place to work in. Management should take strict actions
to handle such situations. In addition to this, a special committee should be established to sort
such conflicts among the staff members. Moreover, an organization should organize some inter-
departmental fun competition, so that, employees from different departments get a chance to
interact with one another out of the workplace. Other than that, role- switch is also an effective
method to tackle intergroup conflicts.

To do so, a random person from one department should be sent to other departments to work for
a week or more once in six months. This method will give chance to employees to come out of
their comfort zone and they will also learn the methods, conditions and more importantly the
problems of the employees of that department.

This will make employees become compassionate towards one another. A common example
which is seen in real life is when sales achievement awards are to be given. While the individual
contributor who has worked in the area and achieved his numbers deserves the award, the
marketing team may also claim the award saying it was they who came up with an
excellent strategy which brought results. This will cause a conflict in the Sales and Marketing
team, which will be an intergroup conflict.

Conflicts are inevitable to take place when a group of people works together. However, conflicts
are not always damaging, but the inability to resolve them is damaging for the organization. Care
should be taken that conflicts are to be solved at the first stage, immediately when it pops up.
Unresolved conflicts can be very damaging to everyone involved.
b. Explain what strategies can be used by Lemon Tree to resolve these conflicts? (5 Marks)

Conflicts cause anxiety and tension in the workplace, which makes the workplace an unsuitable
place to work at. Whenever conflict happens between different staff members or between
manager or staff members productivity reduces. Reduction in productivity is not good for an
organization, therefore, it is very important for a manager or leader to understand the conflicts
and take suitable actions to settle them and make a workplace a peaceful and
healthy environment for everyone. Whatever the reason for conflict, conflict management is
essential not only in personal life but also in your workplace. Conflicts are prevalent in the
workplace, whereby colleagues and bosses argue with each other or everyday matters. It is
crucial to resolve them at the first stage itself so that the situation does not get aggravated.

There are five different types of conflict management styles, as follows:

1. Accommodating

As the name suggests, one person accommodates the other person by accepting all his needs so
that he can win and get his way. On the other hand, the person does not get anything and simply
ends up accepting everything that the other person proposes. While this may seem like letting the
other person win, it has many advantages. In Accommodation, one person has allowed the other
person to win, and it will result in the first person losing everything. Still, this style resolves the
conflict faster than other methods. This method is also beneficial when you couldn’t care about
the issue, and you want to end the arguing so that you can move on with your life. Sometimes the
conflict is resolved quickly and does not require a lot of effort. This is the primary advantage of
accommodating type of conflict resolution. However, this method’s disadvantage is that the
accepting person is seen as a weak person if he agrees to everything that other person demands.

2. Avoiding

This is a style in which you do not perceive the conflict at all and evade it altogether. Even if you
know about the conflict, you will act as if the concept does not exist, and you will postpone
resolving the conflict again and again whenever it comes up. You ensure that neither you nor
anyone you know is involved in the conflict apart from the other conflicting party. This stage of
conflict resolution is used when the matter of conflict is very insignificant. It may not be trivial
to another person, but it is entirely irrelevant and insignificant to you. Therefore you act as if you
couldn’t care less about the matter. This also happens when you don’t have time to respond to
the negativity of the other person. You either avoid the issue with resentment or with complete
indifference. The advantage of this style is that it gives people time to calm down.

Time has resolved more conflict than anyone else, and therefore the time obtained by avoiding
can be used to resolve the conflict entirely. Sometimes the issue resolves itself with time.
However, the disadvantage of avoiding is that it will make the process of conflict worse than
ever. This also puts you in a bad light, saying that you cannot handle the conflict.

3. Compromising

As the name suggests, in compromising, you resolve the conflict by adjusting both sides. A
solution that is in between the demands of both the conflicting parties is agreed upon. Both of
them involved in the conflict are partially satisfied and unsatisfied. This is very important when
you care about the other person involved in the conflict. Issues are solved faster in compromising
type of conflict resolution

The primary advantage of compromising is that both the parties involved in the conflict will
choose a mature path. The process of conflict resolution itself will be seen as an example for
others to follow. Compromise is a road for long-term future relations. Choosing this method of
conflict resolution itself suggests that both of them are willing to work it out for a long
time.However, this method faces a significant disadvantage that none of the parties are pleased
about the resolution. Both of them are partially satisfied, which is bad for both of them. The
parties’ goodwill for their conflict resolution mediator lessens when they are made to choose this
method of resolving conflict.

4. Competing
In this type of conflict resolution, you reject all the perspectives of the other party entirely. You
want the resolution to end up in your favor. You do not take into consideration anybody else’s
point of view and refuse to consider it altogether. It does not matter if your way is the wrong way
or not.

You simply want the solution to go your way. It even doesn’t matter if your weight is ethically
incorrect and may not be beneficial to a lot of people. Instead, your solution will end up harming
a lot of people.Irrespective of that, you compete for the decision to be delivered in your favor.
The advantage of competing is that managers often make use of this style to show their strength.
An ethical manager will use competing to show that he is not back down on his ethics. There is
no space for discussion in the case of people who compete. For example, the United States uses
this approach wherein they have a firm policy of no negotiation with terrorists.The disadvantage
of a competing style of conflict resolution is that managers may exert unreasonable authority on
their employees. This will not lead to employee productivity and does not give space for appeal,
even if the appeal is ethical.

5. Collaboration

Amongst all the conflict resolution styles, collaboration produces the best results, which last for a
long time. But at the same time, the collaboration method is considered to be very difficult to
implement. Collaboration is considered as one of the positive approaches for conflict resolution.
A midway solution that will be win-win for both parties is formed, and the conflict is resolved.
Both of the parties usually sit down together and state their demands. They negotiate to arrive at
a better solution that hurts them the least and which is a win-win for both of them. Collaboration
is correctly used when the relationship is more important than the dispute.When both parties
want to preserve the relationship rather than solve the difference, this method of conflict
resolution is used. One of the advantages of using this method is it leaves everyone happy. A
proper solution to the conflict is found because of collaboration. On the other hand, the
disadvantage of this method is that it is very long and time-consuming. Production deadlines are
usually shifted because of these.