Chapter 6- Organising

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Organsing is the process of establishing relationship among the members of the enterprise.

The various steps involved in this process are:

Chapter 6_1

Organisation Structure:

March and Simon have stated that – “Organisation structure consists simply of those aspects of pattern behavior in the organization that are relatively stable and change only slowly.

Peter F Drucker- “Organisation is not an end in itself, but a means to the end of business performance and business results. Organisation structure is an indispensable means; and the wrong structure will seriously impair business performance and may even destroy it.

Significance of Organisation structure:

  1. Well designed organization helps improve team work and productivity.
  2. Determines the location of decision making in the organization.
  3. Stimulates creative thinking and initiative.
  4. Well structured organization helps in systematic capacity building
  5. Provides the pattern of communication and co-ordination
  6. Helps a member understand what his role is and how it relates to others.

Determining the kind of organization structure:

Peter Drucker pointed out three specific ways of identifying what kind of structure a specific business needs:

  1. Activities Analysis:

Purpose: To discover the primary activity  of the proposed organization for it is around this that other activities will be built.

  1. Decision Analysis:

Purpose: Deciding which decision is to be considered at which layer of the orgaisation, it creates the number of levels the organization requires in an organization.

  1. Relations Analysis:

Purpose:Will include an examination of the various types of relationships that develop within the organization. These relationships are vertical, lateral and diagonal.

Principles of Organization Structure:

Following are the main principles of organization structure:

  1. Consideration of unity of objectives – There must be unity in objective as all efforts should be towards common goal.
  2. Specialization – Precise division of work develops specialization.
  3. Co-ordination – It is the orderly arrangement of group effort to provide unity of action in the pursuit of common purpose.
  4. Clear unbroken line of authority – (The chain of command) Line of authority flows from the highest executive to the lowest managerial level and the chain of command should not be broken.
  5. Responsibility – Authority should be equal to responsibility.
  6. Efficiency – Organization structure should enable attainment of objectives at minimum cost.
  7. Delegation – Decisions should be made from the lowest possible authority.
  8. Unity of Command – Each person should be accountable to a single superior.
  9. Span of management – No superior at higher level should have more than 6 immediate subordinates. The average human brain can effectively direct 3 to 6 brains.
  10. Communication – Smooth flow of information is important for effective communication and understanding in an organisation
  11. Flexibility – Organsition should provide built in devices for growth and expansion without dislocation. It should not be rigid or inelastic.

Formal Organisation v/s Informal Organisation.

Formal Organization Informal Organization
Purpose Refers to the structure of jobs and positions with clearly defined functions and relationships as prescribed by the top management Refers to the relationship between people

in the organisation based on personal attitudes, emotions, prejudices, likes, dislikes etc

Definition Chester I Bernard defines formal organisation as -“a system of

consciously coordinated activities or forces of two or more persons. It refers to the structure

of well-defined jobs, each bearing a definite measure of authority, responsibility and


Pillars The formal organisation is built around four key pillars. They are:

(a) Division of labour

(b) Scalar and functional processes

(c) Structure, and

(d) Span of control

These groups may be based on same taste, language, culture or some other factor. These groups are not pre-planned, but they develop automatically within the organisation according to its environment.
Characterisics ·         Structure laid by top management.

·         Prescribes relationships

·         Consciously designed

·         Concentrates on jobs to be performed.

·         Bound by rules, regulations and procedures

·         Based on division of labour and specialization

·         Co-ordination proceeds as per the prescribed pattern.

·         Unplanned and arises spontaneously

·         Reflects human relationships

·         Not based on rules and regualtions

·         Membership is voluntary

·         Can be overlapping

·         based on common taste, problem, language, religion, culture, etc. It is influenced by the personal attitudes, emotions, whims, likes and dislikes etc. of the people in the organisation

Advantages ·         Makes everybody responsible for given task.

·         Ensures law and order

·         Enables people to work together.

·         Blends well with formal organisaiton

·         Achievement tof sense of security and belonging.

·         Powerful influence on productivity and sense of satisfaction.

·         Helps members attain personal objectives.

·         Agency for social control on human behaviour

Criticism ·         Does not consider sentiments of member

·         Does not consider goals of the individual.

·         Makes organization rigid.


Forms of Organisation

Following are the forms of organization structure.

  1. Line Organisation:

Also known as “Military”, “Traditional”, “Scalar” or “Hierarchical” form of organization.

In the line organisation, the line of authority consists of an uninterrupted series of authority steps and forms a hierarchical arrangement. The line of authority not only becomes the avenue of command to operating personnel, but also provides the channel of communication, coordination and accountability in the organisation.

3 principles of Line Organisation:

  1. Commands should be given to subordinates through the immediate supervisor, there should be no skipping of links in the chain of command.
  2. There should be only one chain. That is command should be received from only one immediate superior.
  3. The number of subordinates whose work is directly commanded by the superior should be limited.

Chapter 6_2

Advantages of Line Organisation:

  1. Easiest to establish and simplest to explain to the employers
  2. Fixes responsibility for performance of the task
  3. Clear identification of authority and responsibility relationships.
  4. Most economical and effective
  5. Ensure discipline is organization as each employee knows whom he is responsible.
  6. Prompt decision making as there is definite authority at every level.


  1. With growth, superiors become overloaded with work.
  2. Being an autocratic system , it may be operated on an arbitrary, opinionated and dictatorial basis.
  3. Subordinates have to obey the orders of superior without expressing their opinion on orders.
  4. Good deal of nepotism and favoritism.
  5. Lack of specialized skill of experts.
  6. Organisation may become rigid and inflexible.
  7. Concentration of authority at the top.
  8. Red tapism and bureaucracy.


2. Line & Staff Organisation:

In line and staff organisation, the line authority remains the same as it does in the line organisation. Authority flows from top to bottom. The main difference is that specialists are attached to line managers to advise them on important matters. The ‘line’ maintains discipline and stability; the ‘staff’ provides expert information. The line gets out the production, the staffs carries on the research, planning, scheduling, establishing of standards and recording of performance.

Chapter 6_3

Types of Staff:

Staff could be classified:

  1. Personal staff: Here the staff is attached as a personal assistant or adviser to line manager.
  2. Specialised staff: Such staff act a fountainhead of expertise in specialized areas .
  3. General staff: This category of staff consists of a set of experts in different areas who are meant to advise and assist the top management on matters called for expertise.

Characteristics of Line and Staff Organization:

  1. Line officers who have authority and command over the subordinates and are accountable for the tasks entrusted to them. The staff officers are specialists who offer expert advice to the line officers to perform their tasks efficiently.
  2. the staff officers prepare the plans and give advise to the line officers and the line officers execute the plan with the help of workers.
  3. Based on the principle of specialization.

Advantages of Line and Staff Organisation:

  1. Brings expert knowledge to bear upon management and operating problems.
  2. As the staff officers look after the detailed analysis of each important managerial activity,
  3. It relieves the line managers of the botheration of concentrating on specialised functions.
  4. It makes possible the principle of undivided responsibility and authority, and at the same time permits staff specialisation.
  5. Based upon planned specialization.
  6. Line and staff organisation has greater flexibility, in the sense that new specialised activities can be added to the line activities without disturbing the line procedure.

Disadvantage of Line and Staff Organisation:

  1. A conflict between line and staff executives
  2. Line managers sometimes resent the work of staff executives.
  3. The staff experts may be ineffective because they do not get the authority to implement their recommendations.
  4. Becomes quite expensive due to expanded staff appointments
  5. Although expert information and advice are available, they reach the workers through the officers and thus run the risk of misunderstanding and misinterpretation.

Chapter 5 – Management by Objectives

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Management by Objectives (MBO) was first outlined by Peter Drucker in 1954 in his book ‘The Principle of Management’. It is a systematic and organized approach that allows management to focus on achievable goals and to attain best possible results from available resources.

Characteristics of MBO:

  • MBO emphasizes participation in setting goals that are tangible, verifiable and measurable
  • Focuses on what should be accomplished (goals) rather than how it should be accomplished (methods).
  • By concentrating on key result areas translates the abstract philosophy of management in to concrete phraseology.
  • Allows management to attain maximum results from available resources by focusing on achievable goals.

Process of MBO:

Chapter 5_1.jpg

Limitation of MBO:

  1. Performance pressure
  2. Time consuming
  3. Increase paper work
  4. Goal setting problems
  5. Organisational problems

Chapter 4 – Planning

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A plan is a forecast for accomplishment. It is a predetermined course of action. Planning is defined in two perspectives:

  1. Based on futurity: “Planning is deciding in advance what is to be done in future”- Knootz
  2. As a thinking function: “ Planning is a thinking process, an organized foresight, a vision based on fact and experience that is required for intelligent action”-Alford and Beatty.

“Planning is deciding in advance what to do, how to do it, when to do it, and who is to do it.”- Knootz and O’Donnell.


Types of Plan:

  1. Strategic Plan:It is an outline of steps designed with the goals of the entire organization as a whole in mind, rather than with the goals of specific divisions or departments.
  1. Tactical Plan: A tactical plan is concerned with what the lower level units within each divison must do, how they must do it, who is in charge at each level.
  1. Operational Plan: Specific results expected from an department, group etc. Operational plan could be Single use plan or an ongoing plan.
  1. Contingency Plan: Contingency Plan involves identifying alternative course of action that can be implemented if and when the original plan proves inadequate because of changing circumstances.


Steps in Planning

Chapter 4_1

*Pestle Analysis: PESTLE stands for Political, Economic, Socio-cultural, Technological, Legal and environmental.

** SWOT Analysis: SWOT stands for Strength, Weakness, Opportunities and Threats


Strategic Management

Strategic management is the process of drafting, implementing and evaluating cross functional decisions that enable an organization to achieve its long term objectives. Strategic management provides overall direction to a business organization.

Strategy formulation process comprise determination of 3 steps:

Chapter 4_2

Strategy Implementation:

Following are the steps involved in strategic implementation:

Chapter 4_3

Strategy Evaluation:

While measuring the effectiveness of the organizational strategy, it is extremely important to conduct a SWOT analysis of the entity in question. In corporate strategy, Johnson and Scholes present a model in which strategic options are evaluated against three key success criteria:

Chapter 4_4

General Approaches for Strategy Management:

  1. Sociological approach: Deals with human interactions.


  • Bounded rationality
  • Satisfying behavior
  • Profit sub-optimality
  1. Industrial Organisational approach: Economic theory, deals with issues like competitive rivalry, resource allocation, etc.


  • Rationality
  • Self-discipline approach
  • Profit Maximisation


Types of Strategies:

Chapter 4_5

Elements of Strategic Management:

Ellen-Earle Chaffee summarized what she thought were the main elements of strategic management theory by the 1970s:

  • It involves adapting the organization to its business environment.
  • Is fluid and complex. Change creates novel combinations of circumstances requiring unstructured non-repetitive responses.
  • Affects the entire organization by providing direction.
  • It involves Strategic formation and strategic implementation
  • Is partially planned and partially unplanned.
  • Done at all levels of management.
  • Involves conceptual and analytical thought process.

Reasons why a Strategy fails:

  • Failure to understand the customer
  • Inability to predict environmental reaction.
  • Overestimation of resource competence.
  • Failure of co-ordinate
  • Failure to obtain senior management commitment.
  • Failure to obtain employee commitment.
  • Underestimation of time requirements.
  • Failure to follow the plan.
  • Failure to manage change.
  • Poor communications.

Business Continuity Plan

ISO 22301:2012 – Business Continuity is defined as the capability of the organization to continue delivery of products or services at acceptable predefined levels following a disruptive incident.

ISO 22301:2012- Business Continuity Management (BCM) is defined as a holistic management process that identifies potential threats to an organization and impacts to business operations those threats, if realized, might cause, and which provides a framework for building organizational resilience with the capability of  an effective response that safeguards the interests of its stakeholders, reputation, brand and value creating activities.

BCM lifecycle shows the stages of activity that an organization moves through and repeats with the overall aim of improving organizational resilience.

Chapter 4_6

Business Continuity Planning plays a key role in BCM; it is the plan to continue operations if business is impacted by a disruptive event


Business forecasting is an systematic attempt to probe in to the future, so as to identify the threats and opportunities and achieve goals successfully by making and implementing well designed plans of action.

Essential components of business forecasting:

  1. Developing the ground work
  2. Estimating future business
  3. Comparing the actual with estimated result
  4. Refining the forecast process

Determinants of business forecast:

  1. Political stability;
  2. Population trends;
  3. Price levels;
  4. Government control and fiscal policy;
  5. Employment, productivity and National income;
  6. Technical environment.

Benefits of forecasting:

  1. Data and information derived in forecasting is utilized for planning and decision making
  2. Improves the quality of managerial planning
  3. Better co-ordination by focusing attention on the future.
  4. Minimizes costly planning errors
  5. Helps in identifying future environmental forces and assists in providing for these challenges
  6. Helps preparing organization for future crisis and emergencies.
  7. Supply vital information about weak spots in the organization

Limitations of forecasting:

  1. Reliability on past data.
  2. Accurate judgement is required, and it is rarely possible
  3. Single figure forecasts may be unsatisfactory
  4. Based largely on assumptions and predictions
  5. Forecasting techniques has not fully developed yet.

Techniques of forecasting:

  1. Genius forecasting: Method is based on a combination of intuition, insight and luck.
  2. Trend extrapolation: Method examines trends and cycles in historical data and then use mathematical techniques to extrapolate to the future.
  3. Consensus methods: Forecasting complex systems often involves seeking expert opinions from more than one persons.
  4. Simulation methods: Involves using analogs to model complex systems
  5. Cross impact matrix methods: Relationships often exist between events and developments that are not revealed by univariate forecasting techniques. The cross-impact matrix method recognizes that the occurrence of an event can, in turn, affect the likelihoods of other events.
  6. Scenario: The scenario is a narrative forecast that describes a potential course of events. The scenario describes the impact on other components and the system as a whole. It is a ‘script’ for defining the particulars of an uncertain future.
  7. Decision trees: Decision trees original evolved as graphical devices to help illustrate the structural relationships between alternative choices. These trees originally presented a series of yes/no (dichotomous) choices. As our decision making became improved, more loops were put in. This structure became the foundation of flow chart.
  8. Economic forecasting: The aim of this method is to predict business fluctuations i.e. fluctuations in general economic activity. Depending on the nature of the business these fluctuations affects the success or failure of business in various ways.
  9. Extrapolation
  10. Lead and Lag method
  11. Econometrics

Chapter 3 – Vision, Mission & Strategies

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VMOSA is an integral part of  every organization. VMOSA stands for Vision, Mission, Objectives, Strategies and Action Plans.

Vision (The Dream)

Vision communicates the dream of the organization and where it wants to reach.  By developing a vision statement organization makes it clear what are the guiding principles for every decision of the organization.

Characteristics of Vision:

  • Understood and shared by the Board
  • Broad enough to encompass stakeholders perspective
  • Inspiring and uplifting
  • Easy to communicate

Mission (The What and Why)

An organisations mission statement communicates what the organsiation is going to do and why it is going to do that. Mission statements are similar to Vision, but they are more concrete and definitely more action oriented than the vision statements.

Characteristics of Mission:

  • Concise
  • Outcome oriented
  • Inclusive

Objectives (How much of What will be accomplished by When)

Objectives refer to specific measurable results for the initiative’s broad goals. An organisations objectives generally lay out how much of what will be accomplished by when.

Chapter 3_1

Strategies (The How)

Strategies explain how the initiative will reach its objectives. These strategies range from the very broad, which encompass people and resources from many different parts of the community, to the very specific, which aim at carefully defined areas.

Five types of specific strategies:

  • Providing information and enhancing skills
  • Enhancing services and support
  • Modify access, barriers and opportunities
  • Change the consequences of efforts
  • Modify policies

Action Plans (What change will happen; Who will do what; By when to make it happen)

Action plan describes in great detail exactly how strategies will be implemented to accomplish the objectives developed earlier in this process.

The plan refers to

  1. Specific changes to be sought and
  2. The specific action steps necessary to bring about changes in all of the relevant sectors, or parts, of the community

Action plans include:

  1. Action steps
  2. Persons responsible
  3. Date to be completed
  4. Resources required
  5. Barriers or resistance
  6. Collaborators

Action plan is made for every goal. A goal has be SMART.

Chapter 3_2

Chapter 2- History of Management

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chapt2_1Classical theory

Otherwise known as traditional theory.  It incorporates three view point:

chapter 2_2

Features/Characteristics of Classical approach

Following are the features of Classical approach:

  1. Concentration on the structure of the organization by emphasizing on division of labour and specialization, scalar, functional process and span of control.
  2. Ignored the role of human element by emphasis more on co-ordination of activities and organization structure.
  3. Treatment of organization as closed system. Ignored the role of the external environment.
  4. Based on Centralization of authority.
  5. Efficiency of the organization is directly related to individual efficiency .
  6. People at work could be motivated by economic reward. As they are supposed to be rational people.

Scientific Management Approach

Main contributors: Frederick W. Taylor, Henry L. Gantt, Franklin Gilbert, Lillian Gilbert and Harrington Emerson.

Frederick W. Taylor:

He launched movement on scientific management, hence been known as “Father of Scientific Management”.  Scientific management means applications of scientific methods to the problems of management. He advocated scientific task setting based on time and motion study, standardization of materials, tools and working conditions and so on. He laid emphasis on following principles:

  • Science, not rule of thumb
  • Harmony in group of action, rather than discord
  • Maximum output in place of restricted output.
  • Scientific selection and placement of workers
  • Almost equal division of work and responsibility between workers and management.

Basic idea of scientific management is mental revolution, which has three implications:

  • All out efforts for increase in production
  • Creation of the spirit of mutual trust and confidence; and
  • Inculcating and developing the scientific attitude towards problems.

Techniques for implementing scientific management:

  • Scientific task setting
  • Work study to simplify work and increase efficiency
  • Standardization of materials, tools equipment, costing etc
  • Scientific selection and training of workers
  • Differential piece-wage plan
  • Functional foremanship
  • Elimination of waste.

Criticism of scientific management:

  • Is production centered and does not consider the human element
  • Ignores social and psychological needs of the workers
  • Trade unionist regarded it the means of exploiting the workers as increase in the productivity did not lead to increase in wages.


Fayol’s Administrative Management

Also known as Management process, Administrative Management approach and also Functional approach. Henry Fayol defined management in terms of functions which led to creation of fourteen principles of management, which according to him has universal applicability. Henry Fayol is considered as “Father of modern theory of general and industrial management”.


Fayol’s principles of Management:



  1. Not applicable at all situations
  2. Theorist did not consider the external environment
  3. Fayol over emphasized the intellectual side of management


Max Weber contributed his views on bureaucracy to the management thought. His ideal bureaucracy has been designed to bring rationality and predictability of behavior in organizations.

He stated that there are three types of legitimate authority:



  1. There is a proper delegation of authority
  2. Because of rules all actions are taken carefully and there is consistency of actions
  3. Behaviour of the employees are rational as they follow the rules and regulations.
  4. Leads to efficient organization.


  1. Rules bring in red tapism and could be the cause of inefficiency.
  2. Does not consider informal organization and inter-personal difficulties.
  3. Discourages innovation.
  4. It is a long process and layers of executive leading to unnecessary delays.

Review of classical theory:

Fundamental flaws of Classical theory are as follow:

  1. Narrow view of organization and over dependence on organization anatomy
  2. Assumption of closed system
  3. Assumptions about human behavior
  4. Economic rewards as Main motivator
  5. Lack of empirical verification
  6. Lack of universal application of principles
  7. Excessive emphasis on Rules and Regulations

Neo-Classical Theory

Neo-classical theory emphasizes more upon the human factor and importance of human element in an organization. Neo classical theory is based upon Hawthrone experiments conducted by Elton Mayo.

Basic tenets of neo-classical approach:

  1. Organisation is an social system
  2. Behaviour of individual depends upon the informal group he is part of.
  3. Social and psychological needs of employees has to be satisfied to improve motivation
  4. Welfare of workers
  5. Morale and productivity go hand in hand.

Findings of Hawthrone experiments:

  1. Every organization is a social system.
  2. Social environment in which the employee works affects his productivity.
  3. Informal organization exists among every formal organisation and is formally or informally affected by it
  4. Group dynamics: Workers often think and work as a member of the group, the group defines their behavior towards the work
  5. The informal leader sets and enforces the group norms.
  6. Two way communication is vital for effective functioning in an organization. Workers are more satisified when their opinions are heard and they are allowed to give feedback.
  7. When there arises conflict between organizational goals and group goals, it better solved through improvement in human relations.


  1. Lack of scientific validity
  2. Overemphasis on group
  3. Over-stretching of human relations
  4. Limited focus on work
  5. Over-stressing on socio-psychological factors
  6. Limited focus on work
  7. Conflict between individual goals and organizational goals.

Behavioral Science Approach

The knowledge drawn from behavioral science is applied to explain and predict human behavior.

Tenets of Behavioral science:

  1. Organisation is socio-technical system
  2. Individuals differ with regard to attitudes, perceptions and value systems. Their responses differ in different situations.
  3. People’s goal may differ from organsational goals and apt fusion between them is desirable.
  4. Many factors influence inter-personal and group behavior of people in organization.

Review of Behavioural Science approach:

  1. Study of human behavior has significant impact in management. Since a man is impacted by many psychological factors while working in an organization, its study is more important.
  2. Behavioural approach suggests how the knowledge of human behavior can be used in making people more effective in the organization.
  3. Behaviourist have enriched management theory with their contributions but have failed in developing integrated theory of management.
  4. While dealing with humans, exact prediction of the response/reaction is difficult.
  5. Behavioural guidelines though helpful and profitable, but are not complete, valid and applicable to all situations.

Quantitative Approach

Also called Mathematical, Operations Research or Management Science approach. This school uses scientific techniques to aid decision making. The techniques commonly used are Linear Programming, Critical Path Method, Programme Evaluation Review Technique, Games Theory, queuing Theory and Break Even Analysis.

Systems Approach

A systems viewpoint may provide the impetus to unify management theory . It could treat the various approaches, such as process, quantitative and bevioural ones, as subsystems in an overall theory of management. The systems approach may succeed where the process approach has failed to lead management out of the theory jungle.

Features of systems approach:

  1. Systems is goal- oriented
  2. Consists of many subsystems which are interdependent and interrelated.
  3. A system is engaged in processing of inputs to outputs
  4. An organization is open and dynamic system, and it has continuous interface with the external environment.
  5. A system has a boundary which seperates it from other systems.




Features of systems Approach:

  1. Interdependent Subsystem
  2. Whole organization: systems approach provides the holistic approach with unified focus on organizational goals
  3. Synergy: Law of synergy states that the combined output of a system is more than the combined output of the parts.
  4. Multidisciplinary

Review of systems approach

  1. Acknowledges the environmental influence in the organization
  2. Represents balanced thinking on organization and management. It stresses importance of avoiding piecemeal approach by emphasizing the interrelationships in the organization
  3. Too abstract and vague, making it difficult to apply at practical situations.

Contingency Approach

Also known as situational approach. John Woodward began this approach in 1950s. The contingency theory stresses that there is no one best style of leadership which will suit every situation.  The effectiveness of one approach will differ in every situation.


Evaluation of Contingency approach:

  1. Guides Managers to be adaptive to environmental variables
  2. Improvement over systems approach as it examines the relationship between organization and its environment.

Operational Approach

Koontz, O’Donnell and Weihrich advocated the operational approach to management. This approach recognizes that there is central core about managing which exists in management such as line and staff, patterns of departmentation, etc.


Chapter 1 – Overview of Management

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Introduction to Management:

Management is the involvement of set of processes which help the organization in materialization of its objectives.

Definition: (I prefer using short and simple definition for easy retention)


Importance of Management

Following are the importance of management (Briefly quoted, you could expand on the basis of marks for questions):

  1. Encourages intiatives
  2. Encourages innovation
  3. Facilitates growth and expansion
  4. Improves life of workers
  5. Improves corporate image
  6. Motivates employees
  7. Optimum utilization of resources
  8. Reduce wastage
  9. Increases efficiency
  10. Improves relations
  11. Reduces absenteeism and labour turnover

(absenteeism means the employee is absent without permission and labour turnover means the employee leaves the organization)

  1. Encourages teamwork

Features/Characteristics of Management

Following are the characteristics of Management (Briefly quoted, you could expand on the basis of marks for questions):

  1. Aims at optimum utilization of resources
  2. Helps in Getting things done
  3. Management is a process
  4. Management is an universal act
  5. Management is a science and an art
  6. It is a profession
  7. Helps to achieve predetermined objectives
  8. Is a system of authority
  9. Is a group activitiy
  10. Involves decision making
  11. Implies Good leadership
  12. Is Goal oriented
  13. Is dynamic and not static
  14. Applies to all levels of organization
  15. Management is intangible

Science v/s Art

Management is a Science Management is an Art
Science is described as a systematic body of knowledge pertaining to an area of study and contains some general truths explaining past events or phenomena Art is described as a way of doing things; it indicates how an objective is to be achieved.
Judging on the basis of above definition:

1.       Management is systematized body of knowledge and its principles are evolved on the basis of observation

2.       As management deals with human, experiments cannot be conducted as in exact science

3.       It is not possible to define, analyse, measure and quantify the results by repeating the same experiment with same inputs again.

Hence Management, like any other Social Science, is an inexact science

Judging on the basis of the above definition:

1.       Management is the application of the principles of management. (Art is application of an application of science, putting principle in to practice)

2.       Practicing management principles regularly leads to perfection, like any art.

3.       Management leads to solve the problems of the organization fully and timely.

Hence, management is an art and science as well.


A Process, Co-ordination and function

There are three perspectives in which management is defined:


5 M’s of Management

Following are the five resources on which Management sails



Skills of an Effective Manager

Robert L. Katz has identified three basic types of skills that every manager needs- Technical, Human and conceptual. Their degree of application varies on the level of organization.