Management Theory and Practice

Answer 1

Introduction:
Henri Fayol was one of the pioneers who could highlight the difference between managerial
and technical capabilities. Let us suppose -- a team where everyone has the best technical
skills but none have any clear management experience. This means that skills without
direction will not result in any efficient outcome.

Having a good technical skill doesn’t automatically make you a good manager. You would
also need several other non-technical skills for planning, forecasting, decision-making,
process management, organisation management, coordination, and control. All these skills
are taught within the 14 principles of management which are useful for managers to know
how to effectively run an organisation.

Concept and Application:

Let us now discuss the 14 principles of Henry Fayol’s Management:
1. Division of Work - The first one is based on the theory that says if an employee is
given a specific task to carry out, he/she will become adequately skilled in it, and thus
complete the task more efficiently. This is opposed to a multi-tasking environment,
wherein an employee is given so many tasks to do at once. In the long run, this will
help them to showcase their productivity, skillfulness, and efficiency.
2. Authority and responsibility - The second management principle states that a manager
must have the required authority to command to his subordinates to carry out his
instructions without any oppositions. However, this authority must accompany
responsibility. There should be a balance between responsibility and authority. If
there is more authority and lesser responsibility, the employees will be eventually
frustrated, vis-a-vis, if there is more responsibility than authority, the manager will
turn frustrated.
3. Discipline - This principle reflects that to run any organisation effectively, discipline
is required with true spirit. To make employees disciplined, effective managers need
to build a culture of mutual respect. There needs to be a set of organizational
philosophies, rules, and structures in place that has to be followed by everyone. There
has to be good impartial judgment and supervision to achieve this.
4. Unity of Command -- According to this principle, there should strict hierarchy
followed for the command in an organisation. The employees associated with a
particular work should only report to a single superior.
5. Unity of Direction -- This principle states that the work to be done needs to be
organised in such a way that employees work in sync with the same objective, by
adhering to one plan, under a single manager’s direction. Multiple types of activities
need to be broken down for different sub-managers.
6. Subordination of individual interest to general interest: According to this principle,
the overall interest of the team needs to take precedence over personal ones. The
interest of the organisation should not be jeopardised by any individual's self-interest.
7. Remuneration -- According to this principle, employees should get fair wages for
their work. Any organisation that underpays its workers will fail to motivate, rather
the employees may leave the organisation. Also, there should be a structure in place
that rewards good performers and motivate the employees
8. Centralisation -- Centralisation means proper concentration of power in the hands of
the authority, followed by a top-bottom approach to management. No organisation, in
a modern context, can be completely decentralized or centralized. To use this
principle effectively today, there needs to be a balanced decentralisation &
centralisation.
9. Scalar Chain -- A scalar chain refers to a hierarchy followed in an organisation. A
clear chain of communication should run between superiors and subordinates. Fayol
suggests that to implement this in the workplace, an organisational chart can be drawn
out for employees to see this structure.
10. Order -- This principle indicates that order is required the efficient coordination of all
the elements in an organisation. There should be an organised placement of resources
(manpower, materials, money, etc.) at the right time and in the right place.
Misplacement of any of these resources will result in mismanagement and disorder in
the organization.
11. Equity -- This term embodies a combination of equality, justice and kindness on the
part of manager(s). This creates devotion as well as loyalty among the employees
towards the organisation.
12. Stability of Personnel & their Tenure -- As per this principle, an organisation should
work to bring down staff turnover rather than maximise their staff efficiency. Both
 new and old employees should also be ensured job security, otherwise, it would lead
to instability and inefficiency.
13. Initiative -- This denotes all employees should be motivated to take initiative in their
work. If workers have a say as to how best they can prove themselves, they feel
encouraged and respected.
14. Esprit de Corps or "Team Spirit" -- The management should strive to bring morality,
cooperation, and unity among the employees.

Conclusion -- All these 14 principles are a great source of strength in an organisation. Over
& above happy and motivated employees are more likely to be productive and efficient and
thus become an asset to the organisation.

Answer 2

Introduction
According to F. W Taylor, Management is knowing what you want to do and then seeing that
it is done in the best and cheapest way. However, the meaning of management is ever
expanding.
It is a tricky issue whether Management is an Art or a Science. However, lets discuss this to
highlight some points.

Concept and Application:

Management As Science -- Science means a systematic body of knowledge that relates to a

particular field of study, containing general facts and explaining a phenomenon. It establishes
cause and effect relationship between two or more variables. Additionally, it underlines the
principles that govern their relationship. Several scientific methods of observations and
verification are performed through tests to reach these principles which are further developed.
Science is characterised by the following main features:
I) Universally accepted principles – Scientific principles reflect some basic truth about a
particular field of inquiry. These principles may apply to all situations, at all places, and at all
times. For example -- the law of gravitation gets applied in all countries irrespective of time
& zone. Management also follows some fundamental principles that are applicable
universally. E.g. - Principle of Unity of Command i.e., one man, one boss. This principle
applies to all types of entities – non-business or business.

II) Experimentation & Observation – Scientific principles are derived through research &
scientific findings i.e.; they are based on logic. This signifies that the principle that the earth
goes around the sun is scientifically proven. Management principles are also based on
scientific observation & inquiry and not entirely on the opinion of Henry Fayol. They have
been developed through practical experiences & experiments of a large number of managers.
For example -- it is observed that fair remuneration to personnel helps in creating a satisfied
workforce.

III) Relationship of Cause & Effect – Principles of science establishes a relationship between
cause and effect between different variables. Example- On heating metals, they get expanded.
Management decides on many plans as per their cause and effect, therefore it also establishes
a cause and effect relationship. For example-- if workers are given fair wages and bonuses,
they will work hard otherwise of it, such as, if they are not treated in a just and fair manner,
the result can be seen in a reduction in the organisation's productivity.

IV) Validity & PredictabilityTest – Principles of scientific validity can be tested at any
number of times or at any time. Each time these tests produce the same result. Also, by using
any of the scientific principles, future events can be predicted with reasonable accuracy. For
example – a specific mix of oxygen & hydrogen will always produce water. In management,
the principle of unity of command can be tested by comparing two persons – one having 2
bosses and the other having a single boss. The performance of the 2 nd case will be better than
the 1st case.

Management as an Art -- Art implies the application of skill as well as knowledge to trying
about desired results. Art may be defined as general theoretical principles' personalised
application for achieving the best possible results. The following characteristics are essential
in Art:

I) Practical Knowledge -- Every art mandates practical knowledge, hence, learning theory is
not enough. It is very essential to know theoretical principles' practical application. For
example -- to become a good painter, the person should not only possess the idea of different
brushes and colors but different situations, designs, dimensions, etc. to use them with perfect
appropriation. A manager can never be successful just by obtaining requisite academic
management degrees/diplomas; he must have also known how to apply various principles in
real situations by functioning as a manager.

II) Personal Skill -- The theoretical base may be the same for every artist, nevertheless, but
each one has his approach and style toward his job & responsibility. That is why the level of
quality and success of performance differs from one person to another. Example --. there are
several notable painters, but Picasso is distinguished for his style statement. Every manager
has his way of managing things based on his experience, personality, and knowledge that is
why some managers are known as path-breakers whereas others are their followers.

III) Creativity -- Every artist is blessed with some sort of creativity in line. That is why he/she
continuously creates something new or pioneering art pieces, which necessitate a
combination of imagination & intelligence. It combines non-human and human resources in a
useful way for achieving desired results.

IV) Goal-Oriented -- Every piece of art is result based, as it endeavors to achieve concrete
results from different inputs. In the same way, management is directed towards
accomplishing pre-determined goals. Management also deals with molding the behavior and
attitude of people at work and achieving desired goals, due to which the company runs
successfully.

V) Effective working -- Managers not only shoulder and manage all problems in every
environment so this can't be science, it is an art of managing every organizational problem in
every environment.

Management as both Art and Science

Management is not only an art it is also a science. All the above-given points establish that
management combines features of both arts as well as science.

Conclusion
Management is considered a science as it possesses an organised body of knowledge that
contains some categories of universal truth. While it is considered an art, managing requires
certain skills which are possessed by managers' credibility. 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 & the art of applying it.

Answer 3A

Introduction
Conflict is always a part of any workplace. This can arise due to a disagreement or
negligence in the performance of tasks. Three types of conflict are commonly visible in
organisations: 1) task conflict, relationship conflict, and value conflict. Harvard Education
enlightens some reference to this.

1) Task Conflict -- Often this conflict includes concrete issues related with the
work/assignments of employees and can cover disputes related to managing expectations at
work, bifurcation of resources, policies, differences of opinion on procedures, and
understanding and judgments of facts. Task conflict, out of these 3 types, is likely to be the
easiest to resolve. But this conflict often happens to have deeper roots and is more complex
than it looks at first glance.

An organisation's leader’s involvement can often resolve task conflict, benefiting the
organisation. This can be done through active listening, viz repeating back what you
perceived through hearing, just to confirm your understanding, involved in asking questions,
and asking even questions so that deeper concerns can be probed.

2) Relationship Conflict -- This conflict arises from differences in matters of taste,

personality, style, and even conflict styles. Hence, it's no surprise that relationship conflict
can be common in the organisation in this situation. Let us assume that you've felt a long-
boiling tension with a colleague, it can be anything like personality differences, work
assignments, or some other issue. You might invite the colleague out to lunch or lay the such
ground and try to get to know her or him better, before escalating to a manager.
3) Value Conflict -- This conflict can arise from differences in values and identities, which
can be any of the differences in ethics, norms, politics, religion, and other deeply held beliefs.
Discussion of religion and politics is often taboo in organisations, decisions, and policies,
such as whether to on board a client that has ties to a corrupt government or whether to
execute an affirmative action program, and some other disputing elements/values can arise in
the context of work.

Conclusion

From the above discussion, it can be concluded that there may arise different types of
conflicts in an organisation due to which correct and timely decisions are not being taken.
Example -- Lemon Tree, the case study organisation in the above question.

Answer 3B
Introduction

Before explaining what strategies can be used by Lemon Tree to resolve their conflicts, let us
assume a case of last 3 years’ financial status of the Hotel chain. Assuming. the consolidated
financial results (Value Stocks n.d.), the Hotel Chain’s total income came down from 206.5o
crores (October 2019–December 2019) to 180.40 crores (January 2020–March 2020). LTH
needed to ride out the difficulties COVID had stricken. The hotel chain had to keep in mind
the different types of stakeholders who would be impacted due to the unfolding scenario.
Taking into consideration of the overall uncertainty, LTH was not at all sure about the
severity of COVID.

The above scenario compelled Khanna and the other top management team to come up with
some scenario planning. Conflict is a situation where any two parties have opposing or
contradictory opinions or viewpoints. In general, conflicts are disagreements between
individuals or teams. There are several projects, employees, departments, or even several
methods of performing a task in any business organisation. Sometimes, this diversity can lead
to situations where there is some sort of conflict, and this is known as organisational conflict.
An organisational conflict can arise due to a variety of reasons like - different opinions,
opposing goals, or incompatibility in the working style.
In the present case study of the firm, Lemon Tree is passing through some issues due to
organisational conflicts. In this hotel chain, the possible conflicts are supposed to be –
1) Disagreement in the task - This informs that there may be different viewpoints among the
employees relating to how a pecific task has to be performed or the goal of the task. Another
conflict type could be conflicts due to the non-clarity of job roles that make it difficult to
understand who is bearing which role and also how can the organisation make any one person
accountable for any work. Uncertain responsibilities not only create confusion among the
workforce and also negatively impact their overall target.

2) The conflict between the Management and employee -- If the management and
employees here are not on cordial terms this can lead to social conflicts in Lemon Tree.
Besides this, ineffective coordination between them could also be a cause for the delayed
decision-making process.

3) Departmental differences - As the Lemon Tree hotel chain has several departments and,
on some occasions, there may be a situation where two or more departments have opposing
interests and goals. It is evident that the business is trying hard to resolve the internal issues.

Conclusion

It is evident that the inability to effectively manage the expansion and execute the growth
strategy have affected their business, results of operations, and financial condition.