1- MANAGEMENT FUNCTIONS

Learning objectives
▪ After reading this chapter, you will understand:
▪ Meaning of management-its principles and functions
▪ Different management tools
▪ Time study (Meaning, objectives, uses, benefits and procedure)
▪ Motion study (Meaning, objectives and procedure)
▪ Work study (Meaning, objectives, procedure and benefits)
▪ Process charts (Meaning, symbols and classification with different charts)
▪ Flow diagram (Meaning and drawing with example)
▪ String diagram (Meaning and drawing-with example)

3.1 INTRODUCTION
Let us first understand ‘what is management’. The management may be called an art as well as a
science. It is an art in the sense that management-means coordinating and getting work done
through others. On the other hand, it is a science in the- sense that- management techniques are
susceptible to measurement and factual determination.

Management is an executive function and does not frame policies. It only implements/executes
the policies laid down by the administration. Therefore, the main functions of management are
executive and largely governing. The various functions of management includes planning,
organizing, motivation, directing, coordination and control all functions. The management
provides new ideas and vision to the organization. It provides stability to the enterprise by changing
and modifying the resources in accordance with the changing environment of the society. So
management only meet the challenge of change.

Let us now consider administration. Administration is supreme master of the industry and is
needed for controlling any enterprise. Administration makes policies and decides the goals/targets
to be achieved. It coordinates finance, production and distribution. An administrator organizes
his own work and that of this subordinated. He delegates responsibility and authority and
measures, evaluates and control position activities.
Finally let us define an organization. Organization is a framework of management. This is group
of persons or a system. The organization is concerned with the building, developing and
maintaining of a structure of working relationship in order to accomplish the objectives of the
enterprise.

So we can say that, “management carried out the policies of administration through the framework
of the organization.” The aim of this chapter is to discuss the functions and principles of
management and also discuss various management tools.

3.2 IMPORTANCE OF MANAGEMENT

No enterprise can be run without management. The importance of management can be understood
as under;
(1) Management guides and controls the activities of man-power for the optimum utilization of
company resources, such as men, materials money, machines, methods e.t.c
(2) Management creates a vital, dynamic and life giving force to the enterprise
(3) Management coordinates activities of different department in an enterprise and establishes
team- spirit among the different persons.
(4) Management provides new ideas and vision to the organization to do way of doing things
(5) Management tackles business problems and provides a tool for the best way of doing things
(6) It is by management only that we can meet the challenge of changes.
(7) Management provides stability to the enterprise by changing and modifying the resources in
accordance with the changing environment of the society
(8) Management helps personality development. Thereby it raises efficiency and productivity

3.3 CHARACTERISTICS OF MANAGEMENT

(1) Management is goal oriented. It achieved the organizational goal through coordination of
the efforts of the personnel
(2) Management works as a catatlyst to produce goods using labour materials and capital.
(3) Management is a district process comprising of functions such as planning, organizing ,
staffing, directing and controlling
(4) Management represents a system of authority- a hierarchy of command and control.
Managers at different levels posses varying degrees of authority.
 (5) Management is a unifying force. It integrates human and other resources to achieve the
desired objectives
(6) Management hormonises the individual’s goal with the organizational goals to minimize
conflicts in the organization.
(7) Management is multi-disciplinary subject. It grew taking the help of subject such as
engineering, psychology, sociology, anthropology, operations research e.t.c
(8) Management is universal in character. The principles and techniques of management are
equally applicable in the field of business, industry education, government, army, hospital,
e.t.c
(9) It is scientific in nature as its techniques can be measured and factually determined
(10) Management is an art because it requires actual work to be done through other people.

3.4 OBJECTIVES OE MANAGEMENT

Managerial objectives are the intended goals which prescribe definite scope and suggest direction
to the efforts of a manager. They should be clearly defined, properly communicated and reasonably
attainable. Further, these objectives should not be conflicting with the overall organizational goals.
Managerial objectives may be classified as:
1. General objectives
2. Specific objectives
(1) General objectives
(i) Nature of business
(ii) Continuous supply of capital
(iii)Growth of firm
(iv) Increasing production and productivity
(v) Economic objectives (e.g., profit),
(vi) Social objectives (e.g., to offer goods of superior quality and services to the society at
reasonable rates, to provide workers with fair wages and incentives and to pay taxes
honestly, etc.).
(vii) Human objectives (e.g., to understand the needs of subordinates, to motivate them and to
boost their morale)
(2) Specific objectives
 (i) Nature of goods to be produced or services to be rendered.
(ii) Type of customers (e.g., rich, poor, individuals, business houses, government, e.t.c
(iii)Market standing (e.g., local, national or international)
(iv) Product diversification, if required.

3.5 MANAGEMENT SKILLS

skill
All managers must have five critical skills: technical skill, interpersonal , conceptual skill,
diagnostic skill and political skill.
(i) Technical Skill
Technical skill involves understanding and demonstrating proficiency in a particular workplace
activity. It is essential for a manager to know which technical skill should be employed in a
particular work situation. Technical skills are things such as using a computer word processing
program, creating a budget, operating a piece of machinery, or preparing a presentation, The-
technical skills used will differ in each level of management. First-level managers may engage in
the actual operations of the organization; they need to have an understanding of how production
and service occur in the organization ill-order to direct and evaluate line employees. Additionally,
first-line managers need skill in scheduling' workers and preparing budgets. Middle-managers use
more technical skills related to planning and organizing, and top managers need to have skill to
understand the complex financial workings of the organization.
(ii) Interpersonal Skill
Interpersonal skill involves human relations, or the manager’s ability to interact effectively with
organizational members. Communication is a critical part of interpersonal skill. Communicating
skill is the ability to pass on information to others. Improper, insufficient and poorly expressed
information/instruction can create confusion and annoyance. A manager with excellent technical
skill but poor interpersonal skill is unlikely to succeed in their job. This skill is critical at all levels
of management.

Motivation is also a part of interpersonal skill. Motivating skill inspires people to do what the
manager wants them to do.
Another interpersonal skill is the leadership skill. It enables a manager to lead people working
under him: It is the ability to inspire confidence and trust in the subordinates in order to have
maximum cooperation from them for getting the work done.
(iii) Conceptual Skill
Conceptual skill is a manager's ability to see the organization as a whole, i.e., as a complete entity.
It involves understanding how organizational units work together and how;' the organization fits
into its competitive environment, Conceptual skill is crucial for top managers, whose ability to see
“the big picture” can, have major repercussions on the success of the business. However,
conceptual skill is still necessary for middle and supervisory managers, who must use this skill to
envision. For example, how work units and teams are best organized.

Decision making skill is a part of conceptual skill. It is the ability of a person to take/timely and
accurate decisions. This requires mental ability and presence of mind.
Organisational skill help to select and assign different people to different works. There is always
a right person for the right job.
(iv) Diagnostic Skill
Diagnostic skill is used to investigate problems, decide on a remedy, and Implement a solution.
Diagnostic skill involves other skills-technical, interpersonal, conceptual and political. For
instance, to determine the root of a problem, a manager may need to speak with many
organizational members-or understand a variety of informational documents. The difference in the
use of diagnostic skill across the three levels of management is primarily due to the types of
problems that must be addressed at each level. For example, first-level managers may deal
primarily with issues of motivation and discipline, such as determining why a particular
employee’s performance is flagging and how to improve it. Middle managers are likely to deal
with issues related to larger work units, such as a plant or sales, office. For instance, a middle-level
manager may have to diagnose why sales in a retail location have dipped. Top managers diagnose
organization-wide problems, and may address issues such as' strategic position, the possibility of
outsourcing tasks, or' "opportunities for overseas expansion of a business.
(v) Political Skill
Political skill involves obtaining power, and preventing other employees from taking away one’s
power. Managers must use power to achieve organizational objectives. This skill can often reach
goals-with less effort than others who lack political skill. Much like the other skills described,
political skill cannot stand alone as a manager's skill. In particularly using political skill without
appropriate levels of other skills can lead to-promoting a manager’s own interest rather than
reaching organizational-goals. Managers at all levels require political skill. Managers must avoid
others taking control that they should have in their work positions. Top managers may find that
they need higher levels of political skill in order to successfully operate in their environments.
Interacting with competitors, suppliers,, customers, shareholders, government and the public may
require political skill at all levels of management.

3.6 LEVELS OF MANAGEMENT

The term levels of management refer to a line of demarcation between various managerial position
in an organization. The number of levels in management increase when the size of the business
and work force increases and vice versa. The levels of Management refers to a line of demarcation
between various management can be classified in three broad categories.
1. Top level/administrative level
2. Middle level /executory
3. Lower level/supervision/operative/first line managers

Managers at all these levels perform different functions. The role, of managers at all the three
levels is summarized in fig (1)

Executive coaching, change management

leadership, delegation & empowerment e.t.c

TOP Problem solving, team building, talent

development , performance management e.tc
MIDDLE

Emotional intelligence & coaching for

LOW LEVEL performance e.t.c

(1) Top level of management

It consists of board of directors, chief executive or managing director. The top management is the
ultimate source of authority and it manages goals and policies for an enterprise. It devotes more
time on planning and coordinating functions.
The role of the top management can be summarized as follows:
1. Top management lays down the objectives and broad policies of the enterprises
2. It issues necessary instructions for preparation of department budgets, procedures,
schedules etc.-
3. It prepares strategic plans and policies for the enterprise.
4. It appoints the executive for middle level, i.e., departmental managers,
5. It controls and coordinates the activities of all the departments,
6. It is also responsible for maintaining a contact with the outside world.
7. It provides guidance and direction.
8. The top management is also responsible towards the shareholders for the performance of
the enterprise.
(2) Middle Level of Management
The branch managers and departmental managers constitute middle level. They are responsible to
the top management for the functioning of their department. They devote more time to
organizational and directional functions. In small organization, there is only one layer of middle
level of management but in big enterprises, there may be senior and junior middle level
management. Their role can be emphasized as:
1. They execute the plans of the organization in accordance with the policies and directives
of the top management.
2. They make plans for the sub-units of the organization.
3. They participate in employment and training of lower, level-management
4. They interpret and explain policies from top level management to lower management.
5. They are responsible for coordinating the activities within the division or department
6. They also send important reports and other important data top level management.
7. They evaluate performance of junior managers.
8. They are also responsible for inspiring lower level managers towards better performance
(3) Lower Level of Management
Lower level is also known as supervisory/operational level of management. It consists of
supervisors, foreman, section officers, superintendent, etc. Supervisory management refers to
those executives whose work has to be largely with personal oversight and direction, of operative
employees. In other words, they are concerned with direction and controlling function of
management. Their activities include;-
1. Assigning of jobs and tasks to various workers
2. They guide and instruct Workers for day to day activities.
3. They are responsible for the quality as well as quantity of production.
4. They are also entrusted with the responsibility of maintaining good industrial relation in
the organization.
5. They communicate workers problems, suggestions and recommendatory appeals, etc. to
the higher level and higher level goals and objectives to the workers
6. They help to solve-the grievances of the workers.
7. They supervise and guide the sub-ordinates.
8. They are responsible for providing training to the workers,
9. They arrange necessary materials, machines, tools, etc. for getting the things done.
10. They prepare periodical reports about the performance of the workers.
11. They ensure discipline in the enterprise.
12. They motivate workers.
13. They are the image builders of the enterprise because they are in direct contact with the
workers.
3.7 FUNCTIONS OF MANAGEMENT
Following are the basic elements in various functions of management:
1. Forecasting
▪ Forecasting is a necessary preliminary to planning.
▪ Forecasting estimates the future work or what should be done in future; for example, with
regards to sales or production or any- other .aspect of business activities
▪ Forecasting begins with the sales forecast and is followed by production forecast and
forecasts for costs, finance, purchase, profit or loss, etc.
2. Planning
▪ Planning all aspects of production, selling, e.t.c are essential in order to minimise
intangibles.
▪ Planning is a process by which a manager anticipates the future and discovers alternative
courses of action open to him.
 ▪ Planning is a rational, economic, systematic way of making decisions today which will
affect the future, e.g what will be done in future, who will do it and where it will be done.
▪ In fact, every managerial act is some type of planning.
▪ Without proper planning, the activities of an enterprise may become confused, haphazard
and ineffective. For example, if a refrigerator making concern does not plan in advance-
how many refrigerators and of what capacities are to be made before the summer starts and
thus it does not procure necessary materials, tools, supplies and personnel in time, it cannot
reach the production targets and hence may not run profitably.
▪ Prior planning is very essential for utilizing the available facilities (men, materials,
machines, etc.) to the best of advantage.
3. Organising
▪ Organising is the process by which the structure and allocation of jobs is determined
▪ Organising involves determining activities required to achieve the established company
objectives, grouping these activities in a logical handling by subordinate (persons),
managers and finally, persons to the job designed. In carrying out the above, the manager
will delegate necessary authority to his subordinates (persons). J in turn, will take the
necessary responsibility.
▪ Organising means, organizing people, materials, jobs, time, etc., and establishing a
framework in which responsibilities are defined and authorities are laid down.
4. Staffing
▪ Staffing is the process by which managers select, train, promote and retire their
subordinates.
▪ Staffing involves the developing and placing of qualified people in the various jobs in the
organisation
▪ Staffing is a continuous process. The aim is to have appropriate persons to move into
vacated positions or positions newly created in the enterprise.
5. Directing
▪ Directing is the process by which actual performance of subordinates is guided towards
common goals of the enterprise
▪ Directing involves motivating, guiding and^ supervising subordinates towards company
objectives.
 ▪ Directing thus includes :
i. Giving instructions to subordinates.
ii. Guiding the subordinates to do the work
iii. Supervising the subordinates to make certain that the work done by them is as per
the plans established.
▪ Directing involves functions such as
a) Leadership,
b) Communication,
c) Motivation,
d) Supervision
a) Leadership
▪ Leadership is the quality of the behaviour of the persons (Managers) whereby they inspire
confidence and trust in their subordinates, get maximum cooperation-fronl them and guide
their activities in organized
▪ Leadership is more than personal ability and skill.
b) Communication
▪ Communicating is the process by which ideas are transmitted, received and understood by
others for the purpose of effecting desired results.
▪ Communication may be verbal or written orders, reports, instruction, etc.
▪ A manager 'communicates to his subordinates as what they should do.
▪ An ineffective communication leads to confusion, misunderstanding, and sometimes even
strikes.
c) Motivation
▪ Motivating means inspiring the subordinates to do a work or to achieve company objectives
effectively and efficiently.
d) Supervision
▪ Supervision is necessary in order to ensure,
i. that the work is going on as per the plan established, and
ii. that the workers are doing as they were directed to do.
6. Coordinating
 ▪ Coordinating means achieving harmony of individual effort towards the accomplishment
of company objectives.
▪ Ineffective coordination between different functions of a business enterprise (such as
production, sales, administration, e.t.c) can ruin the enterprise.
▪ Coordination involves making plans that coordinates the activities of subordinates, regulate
their activities on the job and regulate their communications.
▪ Besides other factors, informal relationships-within an organization also tend to facilitate
co-ordination, because workers, who like each other outside the factory, prefer to work
together on the job also.
Controlling
▪ Controlling is the process that measures current performance and guides it towards some
predetermined goal
▪ Controlling involves:
i. The monitoring of programme activities to make sure that end' objectives are being met.
ii. The initiation of corrective action as required to over-come problems, if any, hindering
the accomplishment of objectives.
▪ Checks and examinations are required on a periodic basis to ensure that the things are
proceeding as per plans established.
▪ Controlling is necessary to ensure that orders are not misunderstood, rules are not
violated and objectives have not been unknowingly shifted. Control means control of
persons and other things.
▪ Controlling is a continuous process which measures the progress of operations,
compares, verifies their conformity with the predetermined plan and takes corrective
action, if required.
▪ Hence, we can say that controlling process
(i) Sets- standards,
(ii) Measures job performance, and
(iii) Take corrective action, if required.
9. Decision making
▪ Decision making is the process by which a course of action is chosen from available
alternatives for the purpose of achieving desired results.
 ▪ An outstanding quality of a successful manager is his ability to make sound and logical
decisions
▪ Management decisions range from establishing consumer operational development needs
to the selection of a preferred system design configuration to many other aspects of
business enterprise

3.8 SCIENTIFIC MANAGEMENT

Scientific management is an attempt to determine and apply the facts and laws that are essential
for efficient running an enterprise. Scientific management was first of all introduced by F.W
Taylor in America (1856-1915) who is regarded as father of scientific management. Before Taylor
business was managed by the rule of thumb and common sense. He found inefficiency all around
the business and introduced scientific management as their solution. Taylor introduced this only
in manufacturing shops but now-a-days it is applied in a wider sense in all the sections of the
factory; or enterprise, .i.e., shops, processes and operations, planning, scheduling, budgetary
control, stock control, market research and wage control, etc. It is also applicable to the building,
equipping, operating and buying of raw materials and selling of finished goods.

Scientific management may be as “Art of knowing exactly what is so be done and the best way of
doing it.” This is simply as systematic approach in solving operations problems. In short “scientific
management is the application of scientific principles and methods to management.”

In scientific management, the fees method of doing a job is scientifically thought out, the
employees are scientifically selected and trained to perform the job and an efficient speed is
scientifically determined by considering the following facts;-
▪ Recognize the problem, analyse and define objectives
▪ Collect and analyse the required data
▪ Select alternative, if possible
▪ Evaluate and review each alternative
▪ Test conclusions and if required, correct actions
▪ Take selected actions and
▪ Formulate and test principles based on experimental results of all the cases
 Summarising: we can say that scientific management involves;
(i) Scientific study and analysis of work
(ii) Scientific selection and training of employees and
(iii) Standardization of raw materials, working conditions and equipment
Aims of scientific management
The aims of scientific management are;-
(a) Increased: Increase in the rate of production by use of standardized tools, equipment and
methods
(b) Quality control: Improvement in the quality of the output by research quality control, and
inspection devices
(c) Cost reduction: Reduction in the costs of production by rational planning and regulation
and cost control techniques. This also leads to increased purchasing power of customer
due to lower unit cost.
(d) Elimination of avoidable waste: Elimination of avoidable waste in the use of resources and
methods of production
(e) Right men for right work: Through scientific selection and training placement of right
person on the right job.
(f) Incentive wages: Payment of uniform wages of workers and giving incentives according
to their efficiency
3.8-1 PRINCIPLES OF SCIENTIFIC MANAGEMENT
The scientific management approach proposed by Savior is based on following five principles;
(1) Use of scientific method: According to traditional method of management, decisions were
based on opinion, intuition or rule of thumb. Scientific management advocates the use of
scientific studies to take managerial decisions. This is the key difference between
traditional and scientific approach.
(2) Scientific selection and training of workers: Every organisation should follow a scientific
system for selection so that only the best worker is selected for a particular job. The selected
workers are to be trained so that they do not follow wrong methods at work. Management
is responsible for their education and training. In addition, management should provide
opportunities for development of workers having better capabilities.
 (3) Co-operation between labour and management: Management should cooperate with the
workers. This requires a change of mental attitude in both-the management and the
workers. Taylor described it as “mental revolution.”
(4) Maximum output: The management and the workers should try to achieve maximum
output in place of restricted output. This will be beneficial to both the parties. Maximum
output will also be in the interest of the society.
(5) Equal division of responsibility: There must be equal division of responsibility between
the managers and the workers. The management should take responsibility-Tor the work
for which it is better suited. For instance, management' -should decide the method of work,
working conditions, time of completion of work. etc. instead of leaving these at the
discretion of workers. The management -should be responsible for planning and organising
the work, whereas the workers should be responsible for the execution of work as per
onstritetions .of management.

3.8-2 RENTAL REVOLUTION

The basic idea behind the principles of scientific management is to change attitudes of the workers
and the management towards each other. Tayior called it ‘Mental Revolution’'. The mental
revolution has three aspects:
i. All-out effort for increase in production
ii. Creation of the spirit of mutual trust and confidence; and
iii. inculcating and developing the scientific attitude towards problems;

Taylor suggested that management should try to find the best methods-of doing various jobs. They
should introduce standardised materials, tools, and equipment so that wastages are reduced. The
management should select right types of people and give them adequate training so as to increase
the quantity and quality of production. It must create good working conditions for optimum
efficiency of the workers. It should perform the decision-making function and should always give
maximum cooperation to the workers to', ensure, that work is done according to the scientific
techniques.
The workers should also change their attitude towards the management. They should be
disciplined, loyal and sincere in fulfilling the tasks assigned to them. They should not waste
resources. Both the management and the workers should trust each other and cooperate in
achieving-maximum production.

Thus, Taylor stood for creating a mental revolution on one part of management and workers. It is
to be noted that Taylor’s thinking was confined to management at the shop level. However, he
demonstrated the possibility and significance of the scientific analysis for the various aspects of
management.
Summarising, we can say that Taylor laid emphasis on:
1) Science and not rule of thumb
2) Harmony in group action, rather than discord.
3) Maximum output in place of restricted output.
4) Scientific selection, training and placement of the workers,
5) Development of all workers to the fullest extent possible for their own and organisation’s
highest prosperity.

3.8 -3 TECHNIQUES OF SCIENTIFIC MANAGEMENT

Taylor and his associates suggested the following techniques to implement the philosophy of
scientific management:
(1) Scientific task setting: Management should set a standard task which a worker m4st do during
a day. Taylor termed it “a fair day's work”. It is the task set up by the management which an
average worker, under average standardised .conditions will do during a working day. This
will prevent the worker from doing work below his capacity.
(2) Work study; Work study implies an organised, objective, analytical and critical assessment of
the efficiency of various operations in an enterprise.
Work study can be conducted by following methods
ii) Method study; It is conducted to know the best method of doing a job. It helps in reducing
the distance travelled by material, and brings improvements in handling, transportation,
inspection and storage of 'raw materials and finished goods.
iii) Motion study: It is conducted to know the movement of an operator of a machine. There
may be some useless motions while the operator is doing a job. Those motions are to be
identified and eliminated. By conducting this study, we come to know whether some
 elements of a job can be eliminated, combined or their sequence changed to get the, pest
method of doing a job.
iv) Time study: Time study is the technique of observing and recording the time required to do
each detailed element of an industrial operation. Through time study the precise time
required for each element of a man's work is determined. It helps in fixing the standard time
required to do a particular job.
(iv) Fatigue study: Fatigue (physical or mental) has ah-adverse effect on worker's health and
his efficiency. Fatigue study helps in reducing fatigue among the workers. Fatigue is
generally caused by long working hours without rest pauses, repetitive operations,
excessive specialisation and poor working conditions. The purpose of fatigue study is to
maintain the operational efficiency of the workers.
(3) Planning the task: Taylor advocated that the planning function should be separated from the
executive function. Workers should not be asked to choose their own methods and decide what
they have to do. The detailed planning should be done by the planning department. The
planning department should prepare detailed instructions for the workers as to the type, quality
and quantity of the products which are to be produced.
(4) Standardisation: Taylor advocated the standardisation of tools and equipment, cost system
and several other items. Efforts should be made to provide standardised working environment
and methods of production to the workers.
(5) Scientific selection and training: The management should design scientific selection
procedure so that right men are selected for the right jobs. Workers should be specifically
trained for the jobs they are appointed so that they can perform their jobs effectively.
(6) Differential piece–wage plan: This plan was suggested by Taylor to attract highly efficient
workers. Under this plan, there are two piece-work rates, one is lower and another is higher.
The standard of efficiency is determined either in the terms of time or output based on time
and motion study. If a worker finishes work within standard time or produces more than
standard output within the standard time, he should be given higher piece rate. On the other
hand, if a worker is below the standard, he shall be given lower piece rate.
(7) Specialisation: Taylor advocated 'functional foremanship' to introduce specialisation. He
recommended eight foreman in all to control the various aspects of production. He suggested four
foreman in the planning department, namely, route clerk, instruction card clerk, time and cost clerk
and shop disciplinarian. The four foreman recommended for getting the required performance from
the workers include gang boss, speed boss, repair boss and inspector.

3.8-4 CONTRIBUTIONS OF SCIENTIFIC MANAGEMENT

The chief contributions of scientific management are:
1. Emphasis on rational thinking on the part of management replacing the traditional thumb
rules method.
2. Focus on the need for better methods of industrial work through systematic study and
research. It leads to standardisation of tools, equipment, materials and work methods.
Proper selection and training of workers is also promoted.
3. Emphasis on planning and control of production leading to division of responsibility
between the workers and management.
4. Development of cost accounting, elimination of- avoidable wastes and better utilisation of
various resources.
5. Development of incentive plans of wage payment based on systematic study of work.
6. Focus on the problem of fatigue and res in industrial work.
7. Improving worker-management relationship
8. Focus on the need for separate department to control various aspects of production.

3.8-5 ADVANTAGES OF SCIENTIFIC MANAGEMENT

Scientific management is an approach which serves the common interests of employees, workmen
and society.
Advantages to the employees are:
1. A better workforce can be created by proper selection and training of the workers.
2. Coordial relations are developed between the workers and the management.
3. The responsibilities of the workers and the management are clearly defined.
4. Efficiency of the industry is increased due to standardisation of tools, equipment materials
and work methods.
5. Various resources are better utilised and avoidable wastes are identified and minimized.
6. Determination of work to be done by a worker during a working
Advantages to the workers are:
 1) There are opportunities for training and development for workers which increases then1
work knowledge and skills.
2) Detailed instructions and guidance is provided to the workers which \ reduces the chances
of accidents.
3) Production linked incentives in pay-package.
4) Reduction in fatigue due to application of scientific methods at job
5) Better working conditions and tools. This leads to better health of workers.
Advantages to the society are:-
1) Better quality products at lower costs to the people.
2) Higher standard of living of people through better products
3) Increased productivity in the country
4) Industrial peace in the country
5) Technological development due to scientific investigation

3.8-6 CRITICISM OF SCIENTIFIC MANAGEMENT

Scientific management ignores human factors such as personality, motivation and job satisfaction.
Worker is regarded as another machine; within the industry. Worker is looked upon as a more
instrument of production and reduces him to a semi-automatic attachment to the machine/or tool:
So scientific management was criticized not only by the workers and managers but also by the
psychologists and the general public. Their viewpoints are now discussed.

Worker's view point

The workers criticized scientific management on the following grounds:
(1) Speeding up of workers: Workers feels that scientific management treats them like machine
demanding maximum output. It does not bother about the adverse effect of speeding up of
work on the physical and mental well-being of the workers.
The counter viewpoint as advocated by followers of scientific management is that speeding up of
work the result of improved methods of work, tools and working conditions.
(2) Boredom; Workers are given a particular job to do in which they are expected to specialise.
This leads to monotony in job, i.e., same job being repeated again and again. After some time
workers may feel boredom.
(3) No scope for initiative: Workers are given a particular job with instructions on how to do and
in what time. There is no scope for initiative or find new methods of work
(4) Unemployment: There is a general feeling among workers that as the output per worker
increases, job opportunities will reduce. This leads to increase in unemployment.
(5) (5) Weakening of trade union: Scientific management rests on the fundamental economic
principle that harmony of interests exist between employers and workers. It discourages
disputes over the distribution of gains from increased productivity. In this way it weakens the
trade union movement,
(6) Exploitation of workers: There is a general feeling among workers that scientific management
is a clever device for the exploitation of the workers. They feel that the wages of the workers
were not increased in direct proportion to productivity increases.

Employer’s view point

The employers criticized scientific management on the following grounds:
(1) Expensive process: The introduction of scientific management requires a lot of money.
Standardisation of methods of work, tools' and improvement in working conditions all require
huge amount of money. The employers have to bear extra cost of planning department in the
industry.
(2) Re-organisation: The process of introduction of methods of scientific management in an
existing industry means stoppage of work. Further, full capacity production takes some time.
The management has to suffer losses.
(3) Lack of financial control: Scientific management is silent on the issue of financial control.
This can lead to inefficiency in, the enterprise.
(4) Impractical functional foremanship: The eight foremans recommended by Taylor are not
practical. It is riot possible for a worker to receive commands from eight bosses at a time and
satisfy them all.
3.9 PRINCIPLES OF MANAGEMENT
A principle is a basic statement that provides understanding and guide to thinking and action.
‘Principles of management’ implies a list of current management practices. Though F.W Taylor
developed principles of management, the credit goes to Henry Fayol for advocating and
publicizing these principles.
Henry Fayol listed 14principles of management on the basis of his experience. They are;-
1. Division of work
2. Authority and Responsibility
3. Discipline
4. Unity of command
5. Unity of direction
6. Subordination of individual general interest
7. Remuneration
8. Centralisation of authority
9. Scalar chain y
10. Order
11. Equity of treatment
12. Stability
13. Initiative
14. Esprit de Corps

1. Division of Work
The division of works means dividing the workers on the .principle that different workers are best
fitted for different jobs depending upon their personal attitude and skills. Division of work leads
to specialisation. The main advantage of division of work is that the quality of the product is
improved.
2- Authority and Responsibility
An executive can justice with his responsibility only when he has proper authority. Responsibility
without authority or vice versa is meaningless.
3- Discipline
Discipline is necessary for efficient functioning of all enterprises. This is a respect for agreements
that are directed at achieving obedience and the outward marks of respect.
4- Unity of Command
Unity of command means that employees should; receive orders and instructions from only one
boss or supervisor. This means that an employee should work under only one boss or supervisor.
5- Unity of direction
Unity of direction implies that there should be one plan and one head for each group of activities
having the same object.
6- Subordination of individual to general interest
The interests of an individual person should not be permitted to supersede upon the general
interests of the enterprise. This is necessary to maintain unity and to avoid friction among the
employees.
7- Remuneration
Remuneration is the price paid to employee for the services rendered by him to the enterprise. It
should be fair and should bring maximum satisfaction to both (employee and employer).
8- Centralisation of authority
In an organisation, the authority should be centralised for the best overall performance. The
authority should not be dispersed among different sections.
9- Scalar chain
Scalar chain means that there should be an unbroken line of authority and command through all
levels from the highest (general manager) to lowest ranks. The managers should be regarded as a
chain of superiors.
10- Order
This means that everything e.g, materials) and everyone (human being) has his place in the
organization
11. Equity of treatment
Equity of treatment means that the manager of the organisation should deal the subordinates with
kindness and justice. This will make employee more loyal and devoted towards his duties and
management.
12. Stability
Instability is the result of bad management. The table and secure work force is an asset to the
enterprises. For example, an average employee who stays with the organisation for a longer time
is much better than outstanding employees who merely come and go.
13. Initiative
Initiative is one of the keenest satisfactions for an intelligent employee
14. Esprit de corps
This principle of management emphasizes the need for team work among the employees
3.10 MANAGEMENT TOOLS
There may be management situations in which all the needed data for solving a problem is not
readily available. In such cases, it is necessary to go beyond the analytical approach and use the
design approach for solving problems. The tools that are used effectively for solving management
problems are known as management tools.
Following are the seven management tools.
1. Affinity diagrams
2. Interrelationship diagrams
3. Tree diagrams
4. Matrix diagrams
5. Matrix data analysis
6. Process decision program charts (PDPC)
7. Arrow diagrams
The following table lists the seven tools and their utilization

Table1: List of seven tools in Nutshell

S/NO. Tool name Utilization

1. Affinity diagrams Used to organize abstract thinking about the problem. To

analye the problem in relation to the customers

2. Inter-relation diagrams To analyse the problem in relation to different relationship

Used for determining causalities among parts of a problem

 3. Tree diagrams Functional analysis system technique (FAST) in value
engineering

To get the root cause to solve the problem

4. Matrix diagrams Used to organize knowledge in matrix format

To establish relationship between various elements and

arrange them in a matrix

5. Matrix analysis Principal components technique is performed on matrix

data

To take clue from structured form at and analye the problem

6. Process decision Determining which processes to be used by evaluating

program charts (PDPC) events and prospective outcome using operations research
method

7. Arrow diagrams To arrange activities in correct sequence used to do ‘what

fifing’ on flow of process

3.15 PROCESS CHARTS

In general, a chart may be a diagram, a picture or a graph that gives an overall view of a situation
say a process. A chart representing a process may be called as a process chart.

A process chart records graphically or diagrammatically in sequence, the operations connected

with the process. Therefore, a process chart is a representation of events and information related
to the process during a series or operations.

In an organisation, producing any product, process chart is a diagrammatic representation of all

the activities of operation passing from beginning with the first operation to the last operation, i.e.,
completion of product. It is important to mention here that process charts represent a picture of a
given process so clearly that every step of the process can be understood by those who will study
the charts.

Charts are generally represented by symbols. The following five basic symbols are used to record
different types of events.
Symbols used in process chart
S.No Event Symbol Description

1. Operation It indicates the main steps in process, method or

procedure. The operation may involve modification
of a material, change in location or condition of
(circle) product. Example: cutting a bar on a power hacksaw

2. Storage This represents a stage when a raw material awaits

an action or an item has been retained for some time
(inverted for reference purposes. Example: refrigerators in a
triangle) stock room.

3. Delay or It indicates work waiting between consecutive

temporary operations or object laid aside before next operation
storage is performed on it. Example; power failure, waiting
(letter D) for the lift or a traffic jam

4. Transportation It indicates the movement of workers materials or

equipment from one place to other object. Example;
(arrow) steel rods being sent from stores to machine,
aeroplane flying from one city to another

5. Inspection This shows examination or check on quality or

quantity of the product. Example; checking the
hardness of a metal piece
(square)

In addition of above basic symbols, there are two more symbols for combined activities. The
important events has the outer symbol. These symbols are

6. Operation cum Example: Article are being pained as they are

transportation transported by chain conveyor

Arrow
within
sphere
7. Inspection cum Example: Power milk tin is being weighted
operation (inspection) as it is filled. Both the events occur
simultaneously
Circle
within
sphere

REVIEW QUESTIONS
1. Define ‘management’ ‘organisation’ and ‘administration’.
2. How is management important for running an organisation?
3. Explain the different characteristics of management,
4. What are the various objectives of management?
5. What are the various management skills necessary for managers?
6. Explain the different levels of management along with their duties,
7. Explain the various functions of management. How are these functions inter-related?
8. What is meant by scientific management? How does it influence various management
functions?
9. Discuss the principles of management
10. What do you mean by management tools? Name the different management tools.