CHAPTER ONE

FUNDAMENTALS OF MANAGEMENT
INTRODUCTION

In this dynamic environment, every human being has several needs and desires.
However, no individual can satisfy all his wants. Thus, people work together to meet their
mutual needs, which they cannot fulfill individually. Moreover, man is a social being, as
he likes to live together with other people. It is by working and living together in
organized groups and institutions that people satisfy their economic and social needs. As
a result, there are several types of groups, e.g. School, government, army, a business
firm, a football team, and the like, such formal groups can achieve their goals effectively
only when the efforts of the people working in these groups are properly coordinated and
controlled. The task of getting results through others by coordinating their efforts is
known as management. Just as the mind coordinates and regulates all the activities of a
person, management coordinates and regulates the activities of various members of an
organization.
1.1Definition of Management
As far as the definition of management is concerned, it is rich in definition. Hence, there
is no one universally accepted definition of management. This is because,
1) Management as a discipline is recent in origin: management as a field of study is too
young, to develop.
2) Management is so broad that it is difficult to encompass all of its aspects in a single
definition.
3) There are different approaches to management, definitions change as the environment
changes. The environments of an organization change because of changes in political,
economic, social, ethical etc environment changes.
Therefore, management has been given various but mutually supportive definitions by
different authors and scholars. Some of the definitions are:
1.Management is the art of getting things done through other people by making the
working condition conducive for others. This process puts emphasis on both the
objectives to be attained and the people who will be pursuing them.
 An effective manager focuses on both work and people. The job of every manager is
to achieve organizational goals through the combined efforts of people.
2.Management involves coordinating and overseeing the work of others so that their
activities are efficiently and effectively.
 Efficiency refers to getting the most output from the least amount of inputs. Because
managers deal with scarce inputs, including resources such as people, money, and
equipment—they are concerned with the efficient use of those resources. It is often
referred to as “doing things right “that is, not wasting resources.

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 Management is also concerned with being effective, completing activities so that
organizational goals are attained. Effectiveness is often described as “doing the right
things
 Whereas efficiency is concerned with the means of getting things done, effectiveness
is concerned with the ends, or attainment of organizational goals

3.Management is the utilization of scientifically derived principles to examine and

improve collective efforts or production.
 Management applies to any kind of organization, to managers at all organizational
levels.
 Without management, virtually no business could survive
4.Management is the process of achieving organizational goals through engaging in the
five major functions of planning, organizing, staffing, leading, and controlling. This
definition recognizes that:
 Management is an ongoing activity
 entail reaching important goals, and
 Involves knowing how to perform the five major functions of management
5.Management is the process of coordinating all resources through the five major
functions of planning, organizing, staffing, directing /leading and controlling to achieve
organizational goals/desired objectives.
In the above definition, there are three key concepts
 Coordination of all resources – managers should coordinate the resources of an
organization. These resources may be human or non-human. Managers are the force
that unifies these resources. It is the process of bringing them together and
coordinating them to help accomplish organizational goals. All organizations also
have resources that can be used to meet organization’s objectives.
 The five managerial functions – To coordinate the resources of an organization a
manager should employ/use the five managerial functions.
 Objectives – are desired outcomes or targets and management is useful for achieving
these objectives. There are points to be met, targets to be shot or places to be reached.
All organizations establish a variety of goals and direct their energies and resources to
achieve them.

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Manager - manager is someone who coordinates and oversees the work of other people
so that organizational goals can be accomplished. A manager’s job is not about personal
achievement—it is about helping others do their work. Managers are those persons in the
position of authority who make decisions to commit (use) their resources and the
resources of others towards the achievement of organizational objectives.* Everybody is
the manager of his/her time, energy, and talents.
Organization: it is a deliberate arrangement of people to accomplish some specific
purpose. It is a group of two or more persons engaged in a systematic effort to produce
goods and/or services. Organizations have three common characteristics.
 First, an organization has a distinct purpose. This purpose is typically expressed
through goals that the organization hopes to accomplish.
 Second, each organization is composed of people. It takes people to perform the
work that is necessary for the organization to achieve its goals.
 Third, all organizations develop some deliberate structure within which members do
their work
1.2 Significance Of Management
Why do we study management? You may be wondering why you need to study
management. You are majoring in management or let us say any field other than
management; you may not easily understand how studying management is going to help
you in your career. We can explain the value of studying management by looking at three
things: the universality of management, the reality of work, and the rewards and
challenges of being a manager
 The Universality of Management: We can say with absolute certainty that
management is needed in all types and sizes of organizations, at all organizational
levels and in all organizational work areas, and in all organizations, no matter where
they are located. This is known as the universality of management.
 The Reality of Work: Another reason for studying management is the reality, that
for most of you once you graduate from university and begins your career; you either
will manage or be managed. For those who plan to be managers, an understanding of
management forms the foundation upon which to build your management skills. For
those of you who do not see yourself as a manager, you are still likely to have to
work with managers.
 Challenges and Rewards of Being a Manager: being a manager can be a harsh and
often thankless job. In addition, a portion of a manager’s job (especially at lower
organizational levels) may entail duties that are often more clerical (compiling and
filing reports, dealing with bureaucratic procedures, or doing paperwork) than
managerial. Managers often have to deal with a variety of personalities and have to
make do with limited resources. It can be challenge to motivate workers in the face
of uncertainty and chaos, as this recession has illustrated repeatedly. Moreover,
managers may find it difficult to successfully blend the knowledge, skills, ambitions,

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 and experiences of a diverse work group. Finally, as a manager, you are not in full
control of your destiny. Your success typically is dependent upon others’ work
performance.
Despite these challenges, being a manager can be rewarding.
 You are responsible for creating a work environment in which organizational
members can do their work to the best of their ability and thus help the
organization achieve its goals.
 You help others find meaning and fulfillment in their work. You get to support,
coach, and nurture others and help them make good decisions.
 In addition, as a manager, you often have the opportunity to think creatively and
use your imagination.
 You’ll get to meet and work with a variety of people—both inside and outside the
organization
 Other rewards may include receiving recognition and status in your organization
and in the community, playing a role in influencing organizational outcomes, and
receiving attractive compensation in the form of salaries, bonuses, and stock
options.
1.3 Managerial Functions
There is disagreement among management writers on the classification of managerial
functions. Newman and summer recognize only four functions, namely, planning,
organizing, leading, and controlling. Henri Fayol identifies five-functions of
management, viz. planning, organizing, commanding, coordinating, and controlling.
Koontz and O'Donnell divides these functions into planning, organizing, staffing,
directing, and controlling. For our purpose, we shall designate the following five as the
functions of a manager: Regardless of the type of firm and the organizational level, all
managers perform certain basic functions. These managerial functions are Planning,
organizing, staffing, directing/leading/ and controlling.
1) Planning: It is making decisions today about future actions. It involves selecting,
objectives, and the actions to achieve them; it requires decision-making, which is,
choosing future courses of action from among alternatives. No real plan exists until a
decision (a commitment of human or material resources) has been made. Planning
bridges the gap between where we are to where we want to be in a desired future. It
thus involves:
 Determination of long and short-range objectives;
 Development of strategies and courses of actions to be followed for the
achievement of these objectives; and
 Formulation of policies, procedures, and rules, etc., for the implementation of
strategies, and plans.

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2) Organizing: It focuses on allocating and arranging human and non-human resources so
that plans can be carried out successfully. Resources are allocated based on major
company goals. Organizing thus involves the following sub-functions:
 Identification of activities required for the achievement of objectives and
implementation of plans.
 Grouping the activities to create self-contained jobs
 Assignment of jobs to employees
 Delegation of authority to enable them to perform their jobs and to command the
resources needed for their performance.
 Establishment of a network of coordinating relationships
3) Staffing: As it has been pointed out, organizing involves creating job positions with
assigned duties and responsibilities. Staffing involves filling and keeping filled the
positions in the organization structure. It is concerned with locating prospective
employees to fill the jobs created by the organizing process. It is basically deals with
inventorying the people available, announcing vacancies, accepting, identifying the
potential candidates for the job, recruiting, selecting, placing, orienting, training and
promoting both candidates and existing employees. Staffing is concerned with human
resource of the organization. It comprises several sub functions :
 Manpower planning involving determination of the number and the kind of personnel
required.
 Recruitment for attracting an adequate number of potential employees to seek jobs in
the enterprise
 Selection of the most suitable persons for the jobs under consideration
 Placement, induction, and orientation
 Training and development of employees
 Transfers, promotions, termination and layoff
4) Directing/Leading: has been termed as motivating, influencing, guiding, stimulating,
actuating, or directing. It is aimed at getting the members of an organization move in the
direction that will achieve its objectives. Leading/leadership is the heart and soul of
management. It involves influencing others to engage in the work behavior necessary to
reach organizational goals; i.e., it is influencing people so that they will contribute to
organizational and group goals; it has to do predominantly with the human/interpersonal
aspect of management.
Leading is the most complex managerial function because it deals with complex human
behavior; and because most problems in organizations arise from the people, their desire,
and behavior. It includes communicating with others, helping to outline a vision of what
can be accomplished, providing direction, and motivating organization members to put
forth the substantial effort required.
5) Controlling: is the measuring and correcting of the activities of subordinates to ensure
that events conform to plans. It deals with establishing standards, measuring

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 performances against established standards and dealing with deviations from established
standards. Thus, controlling involves the following process :
 Established standards
 Measurement of performance against predetermined goals
 Identification of deviations from these goals & corrective actions to rectify deviations

1.4 Levels of Management

Levels of management refer to a line of demarcation between various managerial
positions in an organization. Is management the same throughout an organization? Yes or
No
 Yes: because all managers perform the five managerial functions.
 No: because despite the fact that they perform all managerial functions, they perform
it with a different emphasis and scope.
Managers all perform the same management functions, but with different emphases
because of their position in the organization. Although all managers may perform the
same basic duties and play similar roles, the nature and scope of their activities differ.
These differences are the base for the classification of managers.
Managers can be divided based on two criteria. These are:
1) Levels of management (vertical difference)
2) Scope of responsibilities (horizontal difference)
1) Types of Managers based on levels of management
An important determinant of a manager’s job is hierarchical level. Levels refer to
hierarchical arrangement of managerial positions or persons in an organization. The
number of managerial levels in an organization depends on the size of the organization.
In most organizations, however, there are three distinct levels. How these levels are
distinguished? What functions are performed at each level? In addition, the reporting
relationships are some of the issues to be addressed. Based on levels of management or
hierarchy we do have three types of managers. A manager’s assigned duties and the
authority needed to fulfill those duties are what determine the management level.
I. Top Level Managers
Top-level managers are managers who are at the top of the organizational hierarchy and
are responsible for the entire organization. They are usually few in number and include
the organization’s most important managers - the CEO or the president and his/her
immediate subordinates usually called vice-presidents. However, the actual title may vary
from organization to organization. They are few in number because of the nature of the
work they perform and economic problem. They deal with the big picture, not with the
natty gritty. They are responsible for the overall management of the organization. They
establish companywide objectives or goals & organizational policies. Furthermore, top
management:

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 Develop the overall structure of the organization.
 Direct the organization in accordance with the environment.
 Develop policy in areas of Equal Employment Opportunity & employee
development.
 Represent the organization in community affairs, business deals, and government
negotiations.
 Spent much of their time in planning and dealing with middle level managers and
other subordinates
 Work long hours and spend much of their time in meetings and on the telephone.
 Are persons who are responsible for making decisions and formulating policies that
affect all aspects of the firm’s operations?
 Provide overall leadership of the organization towards accomplishment of its
objectives.
 They are responsible for the organization because objectives are established and
policies are formulated at the top.
 Top-level managers take the credit or blame for organizational success and failures
respectively.
2. Middle Level Managers
Middle level managers occupy a position in an organization that is above first-line
management and below top management. They interpret and implement top management
directives and forward messages to and from first-line management.
 Regardless of their title, their subordinates are managers.
 Often coordinate and supervise the activities of lower level managers.
 Receive broad/overall strategies from top managers and translate it into specific
objectives and plans for First-Line Mangers/operating managers.
 Are responsible for the proper implementation of policies and strategies defined by
top-level managers
 Their principal responsibility is to direct the activity that implements the policies of
the organization.
E.g. college deans, Division Head, Plant managers, Army captain
3. First Level Managers/Supervisory Level managers
 Are those at the operating level or at the last level of management
 Their subordinates are non-managers.
 They are responsible for overseeing and coordinating the work of operating
employees.
 Assign operating employees to specific tasks.
 Are managers on which management depends for the execution of its plan since their
job is to deal with employees who actually produce the organization’s goods and
services to fulfill the plan
 Are directly responsible for the production of goods and services

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  Motivate subordinates to change or improve their performance
 Serve as a bridge between managers and non-managers.
 Spent much of their time in leading and little in planning
 Are in charge of carrying out the day-to-day activities within the various departments
to ensure that short-term goals are met
E.g. Department Heads, supervisory personnel, Sales managers, Loan officers, Foreman.
All managers carry out managerial functions. However, the time spent for each function
varies according to their managerial hierarchy. Top-level managers spend more time on
planning and controlling than lower-level managers do. Leading, on the other hand, takes
a great deal of time for first-line managers. The difference in time spent on staffing and
organizing varies only slightly for managers at various levels.

Top

Controlling
Planning

Organizing

Staffing

Directing
Middle

First-line

Organizational Hierarchy Time spent on carrying out managerial functions

Fig. 1.1 The relative importance of the managerial functions at different levels
2) Types of Managers based on scope of responsibility
Based on the scope of responsibility they manage, managers are divided into two:
I. Functional Managers
Functional managers are managers who are responsible for a department that performs a
single functional task and has employees with similar training and skills. Supervise
employees (managers + workers) with specialized skills in specific areas of operations
such as accounting, payroll, finance, marketing, production, or sales etc. They are
responsible for only one organizational activity; i.e. their responsibility is limited to their
specialization/specification.
II. General Managers
General Managers are managers who are responsible for several departments that
perform different functions. They are responsible for the entire operations of the
organization without being specific. Oversee a complex unit, such as a company, a
subsidiary, or an independent operating division. S/he will be responsible for all activities
of that unit, such as its production, marketing, sales, and finance. A small company may
have only one general manager – its president or executive vice president – but a large
organization may have several, each at the head of a relatively independent division.

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 1.5 Managerial Roles and Skills
A. Managerial Roles
Role is an organized set of behaviors that is associated with a particular office or position.
It is a pattern of behavior expected by others from a person occupying a certain position
in an organizational hierarchy. A role is any one of several behaviors a manager displays
as s/he functions in the organization. When a manager tries to carry out the management
functions, s/he must behave in a certain way – to fill certain roles. A managerial role
refers to specific actions or behaviors expected of and exhibited by a manager.
Managerial roles represent specific tasks that managers undertake to ultimately
accomplish the five managerial functions.
Henry Mintzberg identified 10 managerial roles, which are in turn grouped into three
categories: Interpersonal, Informational and Decisional Roles.
1) Interpersonal Roles involve developing and maintaining positive relationships with
others. It is communication oriented. It includes:
a) Figurehead Role: managers perform symbolic duties of a legal or social nature. The
manager is the head of his work unit, be it division, section or department. Because of
this “lead person” position, the manager represents his work unit at ceremonial or
symbolic functions. The top-level managers represent the company legally and
socially to those outside of the organization. The superior represents the work group to
higher management and higher management to the work group.
E.g. Signing documents, presiding at a ceremonial event, greeting visitors, attending a
subordinate’s weeding, university president hands out a diploma for graduates – in all
these cases the manager is representing his/her organization.
b) Leadership Role: The manager is the environment creator – s/he makes the
environment conducive for work by improving working conditions, reducing
conflicts, providing feedback for performance and encouraging growth. The leader
builds relationship and communicates with employees, motivates & coaches them. As
a leader, the manager is responsible for hiring, training, motivating, and encouraging
employees/subordinates. The leadership role is evident in the interpersonal
relationship between manager and his/her subordinates.
c) Liaison Role/Coordinator role: The liaison maintains a network of contacts outside
the work unit to obtain information. Refers to dealing with the member of the
organization; superiors, subordinates, peer level managers in other departments, staff
specialists and outside contacts such as clients. The top management uses this role to
gain favors and information, while the superiors use it to maintain the routine flow of
work. The manager serves as a link between the organization and the informants who
provide favors and information. S/he fulfills this role through community service,
conferences, social events, etc, participation is meetings with representatives of other
divisions.

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2) Informational Roles: focuses on the transmission of important information to and
from internal and external sources. It involves the following activities:
1) Monitor role: is also called information-gathering role. This role refers to seeking,
receiving, screening, and getting information. The manager is constantly monitoring the
environment to determine what is going on. The monitor seeks internal and external
information about issues that can affect the organization. S/he seeks and receives wide
variety of special information to develop through understanding of the organization and
the environment. Information is gathered from news reports, trade publications,
magazines, clients, associates, and a host of similar sources, attending seminars &
exhibitions.
2) Disseminator Role: what does the manager do with the information collected? As the
disseminator, the manager passes on to subordinates some of the information that
would not ordinarily be accessible to them. After the information has been gathered (by
monitor role), it has to be disseminated to superiors, subordinates, peers.
3) Spokesperson/representative Role: the spokesperson transmits information about the
organization to outsiders. The manager is the person who speaks for her/his work unit
for people outside the work unit. One aspect of this role is to keep superiors well
informed and a second aspect is to communicate outside the organization like press,
government agencies, customers, and labor unions. Although the roles of spokesperson
and figurehead are similar, there is one basic difference between them. When a
manager acts as a figurehead, the manager’s presence is as a symbol of the
organization, whereas, in the spokesperson role, the manager carries information and
communicates it to others in a formal sense. Thus, the manager seeks information on
the monitor role, communicates it internally in the disseminator role, and transmits it
externally in the spokesperson role. The three informational roles, then, combine to
provide important information required in the decisional roles.
3) Decisional Roles: involve making significant decisions that affect the organization.
a) Entrepreneur Role (initiator of change): the manager acting as an entrepreneur
recognizes problems and opportunities and initiates actions that will move the
organization in the desired direction. In the role of the entrepreneur, the manager
tries to improve the unit. Often s/he creates new projects, change organizational
structure, and institutes other important programs for improving the company’s
performance. The entrepreneur acts as an initiator, designer, and encourager of
change and innovation.
b) Disturbance Handler Role: solution-seeking role. In the role of disturbance
handler, the manager responds to situations over which s/he has little control, i.e.
that are beyond his/her control and expectation such as a conflict between people or
groups, strikes, breach of contract or unexpected events outside the organization
that may affect the firm’s performance. The disturbance handler is responsible for

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 taking corrective action when the organization faces important, unexpected
difficulties.
c) Resource Allocator Role: decide on the allocation of the organization’s non-human
and human resources. As a resource allocator, the manager is responsible for
deciding how and to whom the resources of the organization and the manager’s own
time will be allocated. This involves assigning work to subordinates, scheduling
meetings, approving budgets, deciding on pay increases, making purchasing
decisions and other matters related to the firm’s human, financial, and material
resources.
d) The Negotiator Role: represent the organization in all important/major
negotiations. Managers spend a great deal of their time as negotiators, because only
they have the information and authority that negotiators require. E.g. negotiations to
buy firms, to get credit, with government, with suppliers, etc.

The Ten Managerial Roles

Category Role Activity
Figurehead Perform ceremonial and symbolic duties such as greeting
Interpersonal

visitors, signing legal documents

Leader Direct and motivate subordinates; training, counseling, and
communicating with subordinates.
Liaison Maintain information, links both inside and outside the
organization; use mail, phone calls, meetings.
Monitor Seek and receive information, scan periodicals and reports,
Informational

maintain personal contacts.

Disseminator Forward information to other organization members; send
memos and reports, make phone calls.
Spokesperson Transmit information to outsiders through speeches, reports,
memos.
Entrepreneur
Initiate improvement projects; identify new ideas, delegate
ideas, delegate responsibility to others.
Decisional Disturbance Take corrective action during disputes or crises; resolve
handler conflicts among subordinates; adapt to environmental crises.
Resource Decide who gets resources; scheduling, budgeting, setting
allocator priorities
Negotiator Represent department during negotiation of union contracts,
sales, purchases, budgets; represent departmental interests.
2 Managerial skills and their relative importance
A manager’s job is diverse and complex and it requires a range of skills. Skills are
specific abilities that result from knowledge, information, practice, and aptitude.
 Management success depends both on a fundamental understanding of the principles
of management and the application of technical, human and conceptual skills.

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  Modern businesses are dynamic and complex, and competition in the market place is
fierce. Consequently, managers must be highly skilled to succeed. The skills of
managers can be classified as technical skill, human relations skill, and conceptual
skill.
1) Technical Skills: It is the ability to use the tools, procedures, or techniques of a
specialized field. It includes mastery of the methods, techniques, and equipment
involved in specific functions, such as engineering, manufacturing, or finance.
Technical skill also includes specialized knowledge, and the competent use of tools
and techniques to solve problems in that specific discipline.
 Is specialized knowledge and ability that can be applied to specific tasks.
 Is a skill that reflects both an understanding of and a proficiency in a specialized field
 Technical skills are most important at the lower levels of management. It becomes
less important as we move up the chain of command because when they supervise the
others (workers), they have to show how to do the work.
E.g. A surgeon, an engineer, a musician, a quality controller or an accountant all
have technical skills in their respective areas.
2) Human Relations /Interpersonal Skill – is the ability to interact effectively with
people. It is the ability to work with, understand, and motivate other people, either as
individuals or as groups. Managers need enough of human relationship skill to be able
to participate effectively and lead groups. These skills are demonstrated in the way a
manager relates to other people, including the way s/he motivates, facilitates,
coordinates, leads, communicates, and resolve conflicts. A manager with human skills
allows subordinates to express themselves without fear of ridicule and encourages
participation. A manager with human skills, likes other people and is liked by them.
This skill is a reflection of the manager’s leadership ability.
3) Conceptual skills – involve the formulation of ideas. It refers to the ability to see the
big picture – to view the organization from a broad perspective and to see the
interrelations among its components. It includes recognizing how the various jobs in
an organization depend on one another and how a change in any one part affects all the
others. It also involves the manager’s ability to understand how a change in any given
part can affect the whole organization, ability to understand abstract relationships,
solve problems creatively, and develop ideas. Conceptual skills are more important in
strategic (long range) planning; therefore, they are more important to top-executives
than middle managers and supervisors.
Although all three of these skills are essential to effective management, their relative
importance to specific manager depends on his/her rank in the organization. Technical
skill is of greatest importance at the supervisory level; it becomes less important as we
move up the chain of command. Human skill is equally important at every level of the
organization. On the other hand, the importance of conceptual skill increases as we rise in
the rank of management. The higher the manager is in the hierarchy, the more s/he will

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be involved in the broad, long-term decisions that affect large parts of the organization.
For top management, which is responsible for the entire organization, conceptual skill is
probably the most important skill of all.
Technical skill deals with things, human skill concerns people, and conceptual skill
has to do with ideas.

Conceptual Skills
Top

Technical Skills

Human Skills
Middle

First-line

Managerial Levels and the required Managerial Skills

Fig. 1.2 Variations of skills necessary at different management levels
1.6 Universality of Management
Regardless of title, position, or management level, all managers do the same job. They
execute the five managerial functions and work through and with others to set and
achieve organizational goals.

In all these organizations, managers must plan, organize, lead, and control. However, that
has not to say that management is done the same way. What a supervisor in a software
application-testing group at Microsoft does versus what the CEO of Microsoft does is a
matter of degree and emphasis, not of function. Because both are managers, both will
plan, organize, lead, and control. How much and how they do so will differ.
Managers are the same whether the organization is private or public, profit making or
non-profit making, manufacturing or service giving, and industrial or small firms. Hence,
management is universal for the following reasons.
1. All managers perform the five managerial functions even if with different emphasis.

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 2. It is applicable for all human efforts; be it a business, non-business, governmental,
private. It is useful from individual to institutional efforts.
3. Management utilizes scientifically derived operational principles.
4. Management, in all organizations, helps to achieve organizational objectives.
5. All managers operate the organizations with specific objectives.
1.7 Management is Science, Art, or a Profession.
Science: - It is an organized/systematized body of knowledge constituting concepts,
theories, and principles concerning a particular field of study. Especially, it is knowledge
obtained from observation, test, and experimentation of facts; and it is universally true;
and applied in any country, organization, etc. Besides, it exploits mathematical models.
1) Its principles are systematized body of knowledge: As science, management is a
systematized body of knowledge representing a core of principles or fundamental
truths that tend to be true in most managerial situations. This systematized body of
knowledge of management helps the practicing manager to make decisions
rationally and objectively rather than a rule of thumb, hunch, or institution, what
they did with the part.
2) Its principles are universally applicable: Scientific principles represent basic facts
about a particular field inquiry. These are objective and represent the best thinking on
the subject. These principles may be applied in all situations and at all times. For
example, the Law of Gravitation states that if you throw an object in the air it will fall
on the ground due to the gravitational force of the earth. This law can be applied in all
countries and at all points of time. Management contains sound fundamental
principles, which can be universally applied. For instance, the principle of unity of
command states that at a time, one employee should be answerable to only one boss.
This principle can be applied in all types of organization-business or non-business.
However, management is not considered as an exact science as chemistry, physics,
etc. It is an Inexact Science. This is because, management deals with people, and it is
very difficult to predict accurately the behavior of living human beings. It is to say
that human behavior is changing and even unpredictable.
3) It is based on scientific inquiry, observation, test, and experiment: Scientific
principles are derived through scientific investigation and reasoning. It means that
there is an objective or unbiased assessment of the problem situation and the action
chosen to solve it can be explained logically. Scientific principles do not reflect the
opinion of an individual or of a religious guru. Rather, these can be scientifically
proved at any time. They are critically tested. For example, the principle that the earth
revolves around the sun has been scientifically proved. Management principles are
also based on scientific inquiry and investigation. These have been developed through
experiments and practical experience of a large number of managers. For example, it
has been observed that wherever one employee has two or more bosses

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 simultaneously, confusion and indiscipline are likely to rise, with regard to following
the instructions.
4) It explains the cause and effect relationships among/between various variables:
Principles of science lay down a cause and effect relationship between related factors.
For example, when water is heated up to 100ºC, it starts boiling and turns into vapor.
Similarly, the principles of management establish cause and effect relationship
between different variables. For instance, lack of balance between authority and
responsibility will cause management to become ineffective.
5) Its validity can be verified and can serve as a reliable basis for predicting future
events: Validity of scientific principles can be tested at any time and any number of
times. Every time the test will give the same result. Moreover, the future events can
be predicted with reasonable accuracy by using scientific principles. For example, the
Law of Gravitation can be tested by throwing various things in the air and every time
the object will fall on the ground. Principles of management can also be tested for
their validity. For example, the principle of unity of command can be tested by
comparing two persons, one having a single boss and other having two bosses. The
performance of the first person will be higher than that of the second.
Art:
Art implies the application of knowledge and skills to bring about the desired results.
Artis characterized by using common sense, personal feeling, beliefs, impulses, etc. It is
doing things in light of the existing realities of a situation. It is concerned with the
application of know-how and skill to the specific time, place, and condition tactfully,
creatively and wisely. The essential elements of arts are:
 Practical knowledge
 Person skill
 Result oriented approach
 Creativity
 Improvement through continuous practice
Let us judge how far management fulfills these requirements:
1) Practical knowledge: Every art signifies practical knowledge. An artist not only
learns the theory, but also its application in practice. For example, a person may have
adequate technical knowledge of painting, but he cannot become a good painter
unless he knows how to make use of the brush and colors. Similarly, a person cannot
become a successful manager simply by reading the theory and getting a degree or
diploma in management. He must also learn to apply his knowledge in solving
managerial problems in practical life. A manager is judged not just by his technical
knowledge, but also by his efficiency in applying this knowledge.
2) Personal skill: Every artist has his own style and approach to his job. The successes
of different artists differ even when all of them possess the same technical knowledge
or qualifications. This is due to the level of their personal skills. For example, there

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 are several qualified singers, but Mr. “X” has achieved the highest degree of success.
Similarly, management is personalized. Every manager has his individual approach
and style in solving managerial problems. The success of a manager depends on his
personality in addition to his technical knowledge.
3) Result-oriented approach: Arts seeks to achieve concrete results. The process of
management is also directed towards the accomplishment of desirable goals. Every
manager applies certain knowledge and skills to achieve the desired results. He uses
men, money, materials, and machinery to promote the growth of the organization.
4) Creativity: Art is creative and an artist aims at producing something that had not
existed before. Therefore, every piece of art requires imagination and intelligence to
create. Like any other art, management is creative. A manager effectively combines
and coordinates the factors of production to create goods and services. Molding the
attitudes and behavior of people at work, towards the achievement of the desired
goals is an art of the highest order.
5) Improvement through people: Practice makes one perfect. Every artist becomes
more and more efficient through constant practice. A dancer, for example, learns to
perform better by continually practicing a dance. Similarly, manager gains experience
through regular practice and becomes more effective.
Thus, “management is both a science as well as an art”. It is a science because it has an
organized body of knowledge consisting of certain universal facts. It is known as an art
because it involves creating results through practical application of knowledge and skills.
However, art and science are complementary to each other. They are not mutually
exclusive. Science teaches one to know and art to do. Art without science has no guide
and science without art is knowledge wasted. For example, a successful manager must
know the principles of management and acquire the skill of applying those principles for
solving managerial problems in different situations.
Management as a Profession
A profession is a vocation requiring,
1. Body of specialized knowledge and Technical proficiency
2. Formal training / standardized education and training
3. Social Responsibility
4. Code of conduct/professional Ethics
1) Body of specialized knowledge and Technical proficiency
If an organization needs to have rational and scientific decision making ability, managers
have to be specialized on a systematic body of management. In addition, management
requires technical proficiency is special fields such as production, marketing, finance,
human resource management, etc. To ensure all these, management requires intellectual
preparation or graduate study.
2) Formal/standardized Education and Training:

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A certain field of study to be a profession, it requires formal training and education. This
holds true for management. There are universities, colleges, and educational institutions
specialized that provide formal teaching of management concepts, theories, and
principles.
3) Social Responsibility:
Any organization has an objective, whether to make surplus, or provide efficient services
to the society, and the likes. In addition, a manager of an organization is responsible to
lead the organization and its members. Besides, managers have to take into account the
obligation to serve the society (mission) and strict adherence to the prescribed moral,
social, and legal conduct; because their existence depends on the service, they give to the
society in general.
4) Code of Conduct:
Any discipline to be a profession, it is subjected to the fulfillment of strict standards,
rules and regulations providing the norm of honesty, integrity, and professional morality
to be adhered by the members.
Management fulfills several essentials of a profession; even then it is not a full-
fledged profession because of the following reasons:
 It does not restrict the entry into managerial jobs for account of one standard or
another.
 No minimum qualifications have been prescribed for managers.
 No management association has the authority to grant a certificate of practice to
various managers.
 Managers are known by their performance and not just their educational
qualifications or university degrees.

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