1.

2 DEFINITION OF MANAGEMENT
It is difficult to define management. In fact, no definition of management has been universally accepted.
One popular definition is by Mary Parker Follett. Management, she says, is the "art of getting things done
through people. This definition calls attention to the manager and oth-
fundamental difference between a

er personnel of an organisation. A manager is one who contributes to the organisation's goals indirectly by
who is not a
directing the efforts of others-not by performing the task himself. On the other hand, person
a

manager makes his contribution to the goals directly by performing the task himself.
organisation's
Sometimes, however, a person in an organisation may play both these roles simultaneousiy. For example, a
sales manager is performing a managerial role when he is directing his sales force to meet the organisation's goals,
but when he himself is contacting a large customer and negotiating a deal, he is performing a non-managerialrole.
In the former role, he is directing the efforts of others and is contributing to the organisation's goals indirectly, in
the latter role, he is directly utilising his skills as a salesman to meet the organisation's objectives.
Two weaknesses of Mary Parker Follett's definition are
1. It uses the word "art" in defining management. To say that management is merely an art is to state
a half-truth. Art deals with the application of knowledge. Management is not merely application of
knowledge. It also involves acquisition of knowledge i.e., science. Management based on rules of
thumb or intuition is not correct management.
2. This definition does not throw light on the various functions of a manager.
A somewhat more elaborate definition of management is given by George R. Terry. He defines management
as a process "consisting of planning, organising, actuating and controlling, performed to determine and
accomplish the objectives by the use of people and resources. According to this definition, management
is a process-a systematic way of doing things. The four management activities included in this process are:
planning, organising. actuating and controlling. Planning means that managers think of their actions in ad-
vance. Their actions are usually based on some method, plan, or logic, rather than on a hunch.
Organising
means that managers coordinate the human and material resources of the
organisation. Actuating means that managers motivate and direct subordi- Box 11
nates. Controlling means that managers attempt to ensure that there is no
deviation from the norm or plan. If some part ot their organisation 1s on Management, then, could be
understood as a process of
the wrong track, managers take action to remedy the situation. (We will
choosing and attaining the
expand our discussion of these activities later in this chapter.)
This definition also indicates that managers use people and other
right organizational goals and
employing the right method
resources, such as finance equipment, etc. in attaining their goals. For
that correctly utilizes the scarce
example, a manager who wishes to increase sales might try not only to resources through apt perfor-
motivate the sales force but also to increase the advertising budget. mance of managerial functions.

2 Claude S. George, Jr., The History of

Management
Thought (New Delhi: Prentice-Hall, 1974), p. 1.
3 H.C. Metcalf and L. Urwick (Eds), Dynamic Administration: the Collected
Pupers of Mary Parker Follett (N. I..
Harper &Row, 1941).
4 George R. Terry, Principles of Management (Homewood, Il1: Richard Irwin, 1953).
 1. Mary Parker Follett: "Management is the art of getting things
done through people.
2. Harold Koontz: "Management is the art of getting things done
through andwith people in formally organised groups. It is
the art of creating an environment in which people can perform
and individuals could co-operate towards attaining of group
goals."

3 Joseph Massie: "Management is defined as the process by

which a co-operative group directs action towards common
goals."
American Society of Mechanical Engineers: "Management
is the art and science of preparing, organising and directing
human efforts to control the forces and utilise the material of
nature for the benefit of men."
5. Michael H. Mescon: "Management is the process of planning.
organising, leading and controlling the eff rts of organisational
members and of using all other organisational resources to
achieve the stated organisational goals."
6. Frederick W. Taylor: "Management is the art of knowing
what you want to do... in the best and cheapest way."
7. John F. Mee: "Management may be defined as the art of
securing maximum prosperity with a minimum of effort so as
to secure maximum prosperity and happiness for both
employer and employee and give the public the best possible
service.
8. Lawrence A. Appley: "Management is the development of
people and the direction of things. Management is personnel
administration."

9. Rose Moore: "Management means decision-making

10. Stanley Vance: "Management is simply the process of
decision-making and control over the action of human beings
for the express purpose of attaining predetermined goals."
11. Donald J. Clough: "Management is the art and science of
decision-making and leadership."
12. George R. Terry: "Management is a distinct process,
consisting of planning, organising, actuating and controlling8
performed to determine and accomplish stated goals by the
use of human beings and other resources."
MANAGEMENT: SCIENCE OR ART b 2ode rat hbne pone d
Management as Science
Science is a systematic body of knowledge pertaining to a specific field of study that contains general
facts which explains a phenomenon. It establishes cause and effect relationship between two or more
variables and underlines the principles governing their relationship. These principles are developed through
scientific method of observation and verification through testing.
Science is characterized by following main features;
1. Universally acceptance principles: Scientific principles represent basic truth about a particular
field of enquiry. These principles may be applied in all situations, at all time and at all places, e.g.,
Law of Gravitation which can be applied in all countries irrespective of the time

Management also contains some fundamental principles which can be applied universally like the
Principle of Unity of Command, i.e. ,one man, one boss. This principle is applicable to all type of
organization-business or non business.
2. Experimentation and observation: Scientific principles are derived through scientific investigation
and researching, i.e., they are based on logic, e.g., the principle that earth goes round the sun has
been scientifically proved.
Management principles are also based on scientific enquiry and observation and not only on the
opinion of Henry Fayol. They have been developed through experiments and practical experiences
of large number of managers, e.g., it 1s observed that fair remuneration to personnel, helps in

creating a satisfied work force.

 Cause and Effect Relationship: Principles of science lay down cause and effect relationship
3.
between various variables, e.g., when metals are heated, they are expanded. The cause is heating

and result is expansion.

The same is true for management, therefore, it also establishes caise and effect relationship, e.g
lack of parity (balance) between authority and responsibility will lead to ineffectiveness.1f you
know the cause, i.e., lack of balance, the effect can be ascertained easily, ie., ineffectiveness.
if workers are given bonus and fair wages, they will work hard but when not treated in
Similarly,
fair and just manner, reduces productivity of organization.
4. Test of Validity and Predictability: Validity of scientific principles can be treated at anytime o
of time. Each time these tests will give same result
any number of times, i.e., they stand the test
Moreover future events can be predicted with reasonable accuracy by using scientific prínciples,
eg., H, and O, will always give HO.
of command can be
Principles of management can be tested for validity. For example, principle of unity
tested by comparing two persons - one having single boss and one having two bosses. The performance
of 1" person will be better than 2d
It cannot be denied that management has a systematic body of knowledge but it is not as exact as that
of other physical sciences like Biology, Physics and Chemistry etc. The main reason for the inexactness
of science of management is that it deals with human beings and it is very difficult to predict their
behavior accurately. Since it is a social process, therefore it falls in the area of social sciences t is a
flexible science and that is why its theories and principles may produce different results at different
times and therefore it is a behavior science. Ernest Dale has called it is a Soft Science.

Management as Art
Art implies application of knowledge and skill for trying about desired result. An art may be defined as
personalized application of general theoretical principles for achieving best possible results. Art has the
following characters:
1. Practical Knowledge: Every art requires practical knowledge therefore learning of theory is not
sufficient. It is very important to know practical application of theoretical principles. For example,
to become a good painter, the person may not only by knowing different colour and brushes but
different designs, dimensions, situations etc., to use them appropriately. A manager can be never
successful just by obtaining degree or diploma in management; he must have also known how to
apply various principles in real situations by functioning in capacity of manager.
2. Personal Skill: Although theoretical base may be same for every artist, but each one has his own
style and approach towards his job. That is why the level of success and quality of performance
differs from one person to another. For example, there are several qualified painters but M.F.Hussain
is recognized for his style. Similarly management as an art is also personalized. Every manager
has his own way of managing things based on his knowledge, experience and personality, that is
why some managers are known as good managers( like Aditya Birla, Rahul Bajaj).
3. Creativity: Every artist has an element of creativity in line. That is why he aims at producing
something that has never existed before which requires combination of intelligence and imagination
Management is also creative in nature like other art. It combines human and non-human resources
 in Useful way so as to achieve desired results. It tries
chords in an etficient manner.
to produce sweet music by combining
4. Perfection through Practice: Practice makes a man perfect. Every artist becomes more and
more proficient through constant practice.
Similarly, managers learn through an art of trial and
error initially but application of management
principles over the years makes them perfect in the
job of managing.
5. Goal-Oriented: Every art is
result oriented as it seeks to achieve concrete results. In the same
manner, management is also directed towards
accomplishment of pre-determined goals. Managers
use various resources like men, money, material, machinery and methods to promote growth of
an organization.

Thus, we can say that management is an art therefore it requires application of certain principles rather
it is an art of highest order because it deals with moulding the attitude and behavior of people at work
towardsdesired goals.

Management as both Science and Art

Management is both an art and a science. The above mentioned points clearly reveal that management
combines features of both science as well as art. It considered as a science because it has an organized
body of knowledge which contains certain universal truth. It is called an art because managing requires
certain skills which are personal possessions of managers. Science provides the knowledge and art
deals with the application of knowledge and skills.
A manager to be successful in his profession must acquire the knowledge of science and the art of
applying it. Therefore, management is ajudicious
blend of science as well as an art because it proves the
principles and the way these principles are applied is a matter of art. Science teaches 'to know' and Art
teaches 'to do', e.g., a person cannot become a good singer unless he has knowledge about various
ragas and he also applies his personal skill in the art of singing. Same way it is not sufficient for manager
to first know the principlesbut he must also apply them in various
solving managerial that
problems is
each other (like tea and
why, science and art are not mutually exclusive but they are complementary to

biscuit, bread and butter etc.)

The old saying that "Managers are Born" has been rejected in favour of "MANAGERS ARE MADE". It
has been remarked that
aptly is the oldest of art and youngest of science. To conclude, we
management
can say that Science is the root and Art is the fruit.
 MANAGEP M
A mandger is a person who plans, organizes, leads, and controls human,
Jinancial. physical. and information resources in the efficient and effective
pursuit of specified organizational goals.
TYPES OF MANAGERS
Tnere a r e all sorts of manager s, categorize managers a s to their
and it is useful to
managerial level, and then to distinguish between functional and general managers
and between line and staff managers.
 MANAGERIAL LEVELS

It is the normal practice to place managers in a three-tier

middle
hierarchy consisting of
top managers, managers, and first-line managers, as shown in Fig. 1.5.
Top Managers
They include job classifications such as the chief executive officer
(CEO), chief
operating ofticer, president, and vice-president. These top-level
managers, often
called executives have the overall responsibility for the welfare and
survival of the
organization. They analyze the business environment and its implications for the
future of the firm. They establish overall
organizational goals and strategies for their
achievement. They a r e responsible for all the activities of the business and are
accountable for its impact on the greater society. The job of the
top manager is
complex and stressful, demanding long hours and total commitment to the
organization.

Middle Managers
They are, as the name implies, in the middle of the
managerial hierarchy,
subordinate to the top managers and responsible for the first-line managers. Middle

Top
Managers

Middle
Managers

First-line
Managers

Marketing Finance Resources

Human Administration Other
Areas
suopeedo
AREAS OF MANAGEMENT

FIGURE 1.5 Managerial Levels and Areas (Source: Grilfin, 1990, p. 13)
 Standardized Scale of Importance
100

90

80

70

60 65
50

40
38 reslasg
30

20

10

Planning Organizing Leading Controlling

(Coordinating0) (Supervisino) Male
First-line Managers

Middle Managers

Top Top Managers

FIGURE 1.6 Importance of Management Functions by Management
Level (Source: Gomez-Mejia, et al, 1985)

managers often have job titles such as division head, operations

superintendent. In complex organizations, middle managers outnumber manager, or plant
all other
managers. They usually have the responsibility for
plans and strategies as developed by the top implementing and controlling
are management.
responsible for all the activities of first-line
At the same time,
they
technology has reduced the number of middBe managers. New information
technical assistance to first-line managers by providing on-line
at restructuring or managers. many Western nations, recent efforts
In
'downsizing'
have also reduced the numbers organizations to make them more cost-effective
that remain in their of middle managers. Butthe many middle
managers
the most difficult "caught-in-the-middle" status are often the least
satisfied andd
managers to motivate in the hierarchy. Still, middle
usually are the source of much of the managers
innovation and creativity that
organizational success (Kanter, 1982). fuels
First-line Managers
These managers normally
havejob titles
such as
supervisor, foreman, section head,
or
department manager. First-line managers are those to whom the
operating
12 Management Today
personnel report. First-line managers are responsible for the implementation and
control of the operational plans developed by middle managers. They are respon-
sible for bottom line operational output in terms of units produced, labour costs,
inventory levels, and quality control. Perhaps the most unique feature of the 1irst
line manager's task is the tremendous amount of time that is spent in the direct
supervision of subordinates.
Figure 1.6 is a graphic representation of the relative importance of the four
management functions at the three different levels of management. For example,
as the manager moves up in the managerial hierarchy, the function of planning
becomes significantly more important. The same is true of the functions of
organizing and controlling, but to a lesser degree. Finally, the function ofleading
becomes less important as one is promoted upward in the organization. (Gomez-
Mejia, McCann, and Page, 1985.)

FUNCTIONAL AND GENERAL MANAGERS 0 e

One way of differentiating between the many kinds of managers is to separate the
functional managers from the general managers.

Functional Managers
in
They areresponsible for a given functional area of the organization. As shown
human
Fig. 1.5, the major functional a r e a s a r e marketing, finance, operations,
resources, administration, and other areas.

Marketing Managers
These managers have the responsibility for the tasks required to move the

organization's product or service into the possession of the

customer or user.
distri-
Marketing managers handle the tasks of product development, promotion, needs
o n satisfying the
bution, sales, and service. Marketing managers must focus
of customers and, therefore, must be knowledgeable a s to the needs of c o n s u m e r s
and also the nature of competitive goods and services.

Financial Managers
management of the organization's financial
resources
They are responsible for the
investments, stocks, bonds, debts, taxes.
and related a r e a s of money management,

and accounting.

Operations Managers
that
These mnanagers have the basic responsibility for the organizational systems
transform inputs such as material, labour, capital, and technology into outputs
must deal with the
that are marketable products or services. Operations managers
control.
problems of facilities layout, production control and scheduling, inventory
and quality control.
Human Resource Managers
hey are responsible for maintaining a well-trained and effective labour suPply for

Nature of Management 13
the organization. As such, they recruit, select, place, train, and discharge employ-
ees based on the human resource needs of the organization.

Administrative Managers
for one of the above
They are usually generalists who are not responsible of
organizational functions. They often manage a
mixture white-collar office
positions. Administrative positions are often found in public service institutions
and have job titles such as hospital administrator, school administrator, or welfare
administrator.

Other Kinds of Managers

They are often found in organizations based on the nature and type of the
organization. For instance, firms in high-technology industries may employ a
Research and Development Manager' to manage the firm's technological develop-
ment. An automobile factory would probably have a Quality Control Manager'. A
large manufacturer would use a 'Manager ofInternational Operations' for overseas
operations.

General Managers ogrotoneon

These managers shoulder the responsibility of a number of departments that
usually transcend functional boundaries. A typical general manager would be a
plant or division manager who is responsible for all the functions performed within
that plant or division.

LINE MANAGERS AND STAFF MANAGERS

Line and staff managers are differentiated indicated in Fig. 1.7.
as
S s
Line Managers
They responsible for the major work activities that contribute directly
are

production of the organization's product or service. In Fig. 1.7, the line

to the
include the Manufacturing managers
Vice- President, the General Manager, the Plant
ers. and the Product
Managers. Manag

Staff Managers
Staff Managers
of the line
are
responsible for the provision of specialized services in
managers. In Fig. 1.7, the Vice-President of Personnel and the
support
President of Finance are staff Vice-
managers.

MANAGERIAL SKILLS
A successful manager must possess a wide
appropriate to the nature of
the
variety of expert skills and abilities
job being per formed. Katz (1974)
categorized and
14 Management Today
 President

Vice-President Vice-President Vice-President

Personnel Manufacturing Finance

General Manager

Plant Manager A Plant Manager B Plant Manager C

Product Supervisor A Product Supervisor B Product Supervisor C

Line

Staff
FIGURE 1.7 Line and Staff Managers (Source: Steers, st al, p. 32)

compared three types of managerial skills: (1)technical skills, (2) human skills, and
(3) conceptual skills.

Technical Skills
A technical skill is the ability to perform a specific task or function. An accounting
manager needs the basic technical skills of the accounting profession. A manufac

turing manager needs the technical skills to deal with the equipment, technology.
and methods of production. As shown in Fig. 1.8, first-line managers need a high
subordinates in the u s e of
degree of technical skills in order to properly supervise
should have a
those skills. That is, a first line manager in the welding department
was developed as a welder prior
high degree of welding skill and, generally, that skill
to the promotion as manager. The need for technical skill decreases as the manager
That is, a middle-level Marketing
noves up in the organizational hierarchy. technical knowledge
Manager or atop-levelPlant Manager requires little or no
about welding

Human Skills
iuman skills are needed to get along with people, to get work done through people,

Nature of Management 15
or to motivate individual or work group performances. Human skills include
interpersonal skills such as communication, negotiation, bargaining. leading,
influencing, motivation, discipline, and conflict resolution. As shown in Fig. 1.8,
humanskills are very important at all levels of management. However, human skills
areprobably most critical for the middle manager, who is forever "in the middle"

Executive Managers Middle Managers First-line Managers

Conceptual
Conceptual
Conceptual

Human
Human
Human

Technical
Technical
Technical

FIGURE 1.8 Differences in Skills Required for Successful Management

According to Level in the Hierarchy (Source: Katz, 1974)

Conceptual Skills
Conceptual skills reflect the manager's ability to organize information and to judge
relationships within a cormplex whole. That is, the manager must be able to view
the total organizatiorn, appreciate the functional interrelationships
of the many
organizational units, and to understand how a change in one unit will impact the
other units. Conceptual skill is often called the ability to see the
"big
Figure 1.8 indicates that the importance of conceptual skills increases as the
picture
manager is promoted higher in the organization. Certainly, the conceptual skills are
usually the most difficult to develop and are most critical for top management.