Lecture

Unit 1 INTRODUCTION TO MANAGEMENT AND

ORGANISATION 1
Topics Concepts of Management and Organization: Nature and Importance
Bloom’s
Learning Outcome (LO) At the end of this lecture, students will be able to
Knowledge Level
LO1 Students will be able to define the basic concepts of management and Remembering
organization.

LO2 Students will understand the importance of these concepts and be able to Understanding
apply them in real-world scenarios.

1.1 INTRODUCTION

In the present context, managing has become one of the most important areas of human
activity because of increasing role of large and complex organisations in the society. Because of
their increasing role, the organisations have attracted the attention of both practitioners and
academicians to find out the solutions for business problems. Concept Defining the term
management precisely is not so simple because the term management is used in a variety of ways.
Being a new discipline, it has drawn concepts and principles from a number of disciplines such
as economics, sociology, psychology, anthropology, and statistics and so on. Each group of
contributors has treated management differently. For example, economists have treated
management as a factor of production; sociologists have treated it as a class or group of persons;
practitioners have treated it as a process comprising different activities.
DEFINITION
Management is the art of getting things done through and with people in formally organized
groups‖ --- Koontz ―Management is the art of knowing what you want to do and then seeing that
it is done in the best and cheapest way‖ –F.W. Taylor ―Management is the art of securing
maximum results with minimum effort so as to secure maximum prosperity and happiness for
both employer and employee and give the public the best possible service‖ --- John Mee.
―Management is the accomplishment of results through the efforts of other people‖ -- Lawrence
―Management is simply the process of decision making and control over the action of human
beings for the expressed purpose of attaining pre-determined goals‖ – Stanley V. Management is
a process involving planning, organizing, staffing, directing and controlling human efforts to
achieve stated objectives in an organization. ‖ From the above definitions, the following features
are identified: -

OIM352- Management Science Prepared by: Dr.J.Suresh, Prof-CSE

 1) Organised Activities: Management is a process of organized activities. Without organized
activities, two groups of people cannot be involved in the performance of activities. Where a
group of people are involved in working towards a common objective, management comes into
existence.
2) Existence of objectives: The existence of objectives is a basic criterion of e very human
organization because all organizations are deliberate and purposive creation and, therefore, they
should have some objectives. Without objectives, it becomes difficult to define the direction
where organized group of activities would lead to.

3) Relationship among resources: Organised activities meant to achieve common goals are
brought about to establish certain relationships about the available resources. Resources include
money, machine, material, men and methods. All these resources are made available to those who
manage the organization. Managers apply knowledge, experience, principles for getting the
desired results. Thus, the essence of management is integration of various organisational
resources.

4) Working with and through people: Management involves working with people and getting
organizational objectives achieved through them. The idea of working through people is
interpreted in terms of assigning and reassigning of activities to subordinates.

5) Decision Making: Management process involves decision making at various levels for getting
things done through people. Decision making basically involves selecting the most appropriate
alternative out of the several. If there is only one alternative, there is no question of decision
making.

Nature of Management: -
The study and application of management techniques in managing the affairs of the organization
have changed its nature over a period of time. The following points will describe the nature of
management
1) Multidisciplinary: Management has been developed as a separate discipline, but it draws
knowledge and concepts from various disciplines like psychology, sociology, anthropology,
economics, statistics, operations research etc.,. Management integrates the idea and concepts
taken from these disciplines and presents newer concepts which can be put into practice for
managing the organisations

OIM352- Management Science Prepared by: Dr.J.Suresh, Prof-CSE

 2) Dynamic nature of Principles: Principle is a fundamental truth which establishes cause and
effect relationships of a function. Based on integration and supported by practical evidences,
management has framed certain principles. However, these principles are flexible in nature and
change with the changes in the environment in which an organization exists.

3) Relative, Not absolute Principles: Management principles arerelative, not absolute, and they
should be applied according to the need of the organization. Each organization may be different
from others. The difference may exist because of time, place, socio-cultural factors, etc.,.

4) Management: Science or Art: There is a controversy whether management is science or art.

An art is personal skill of business affairs. Art is characterized by practical knowledge, personal
creativity and skill. The more one practices an art, the more professional one becomes.
Management can be considered as an art because it satisfies all these criterion of an art. A science
is a systematized body of knowledge of facts. It can establish cause-and-effect relationships 5
among various factors. It involves basic principles, which are capable of universal application.
Management can be considered as science because it satisfies all these criterion of a science.
5) Management as profession: Management has been regarded as a profession by many while
many have suggested that it has not achieved the status of a profession. Profession refers to a
vocation or a branch of advanced learning such as engineering or medicine.
6) Universality of management: Management is a universalphenomenon. However, management
principles are not universally applicable but are to be modified according to the needs of the
situation.
SCOPE OF MANAGEMENT
Generally, the scope of management hovers around the following functional areas
1. production management
2. Marketing management
3. financial management
4. personal management

1. Production management production means creation of utilities by converting raw material

into final product by various scientific methods and regulations. It is very important field of
management. Various sub-areas of the production department are as follows. •Plant lay out
and location: this area deals with designing of plant layout, decide about the plant location for
various products and providing various plant utilities •Production planning: Managers have

OIM352- Management Science Prepared by: Dr.J.Suresh, Prof-CSE

 to plan about various production policies and production methods. •Material management:
this area deals with purchase, storage, issue and control of the material required for production
department. •Research and Development: this area deals with research and developmental
activities of manufacturing department. Refinement in existing product line or develop a new
product are the major activities. •Quality Control: quality control department works for
production of quality product by doing various tests which ensure the customer satisfaction.
2. Marketing management Marketing management involves distribution of the product to the
buyers. It may need number of steps. 3ub areas are as follows •Advertising: this area deals
with advertising of product, introducing new product in market by various means and
encourage the customer to buy these products. •Sales management: sales management deals
with fixation of prices, actual transfer of products to the customer after fulfilling certain
formalities and after sales services. •Market research: It involves in collection of data related
to product demand and performance by research and analysis of market.
3. Finance and accounting management Financial and accounting management deals with
managerial activities related to procurement and utilization of fund for business purpose. Its sub
areas are as follows
•Financial accounting: It relates to record keeping of various financial transactions, their
classification and preparation of financial statements to show the financial position of the
organization.
•Management accounting: It deals with analysis and interpretation of financial record so that
management can take certain decisions on investment plans, return to investors and dividend
policy
•Taxation: this area deals with various direct and indirect taxes which an organization has to pay.
•Costing: costing deals with recording of costs, their classification, and analysis and cost control.
4. Personnel Management Personnel management is the phase of management which deals
with effective use and control of manpower. Following are the sub areas of personnel
management
•Personnel planning: this deals with preparation inventory of available manpower and actual
requirement of workers in organization.
•Recruitment and selection: this deals with hiring and employing human being for various
positions as required. ;
•Training and development: training and development deals with process of making the
employees more efficient and effective by arranging training programmes. It helps in making
team of competent employees which work for growth of an organization. •wage
administration: It deals in Job evaluation, merit rating of Jobs and making wage and incentive

OIM352- Management Science Prepared by: Dr.J.Suresh, Prof-CSE

 policy for employees. •Industrial relation: It deals with maintenance of overall employee
relation,

Assessment questions to the lecture

Qn Bloom’s
Question Answer
No Knowledge Level
1 Which of the following is NOT a function of Correct Answer: Remembering
management? D. Purchasing
A. Planning
B. Organizing
C. Leading
D. Purchasing
Which level of management is responsible for Correct Answer: Understanding
implementing policies developed by top B. Middle-Level
management? Management

A. Top-Level Management
B. Middle-Level Management
C. Lower-Level Management
D. None of the above
What type of organizational structure Correct Answer: Remembering
combines functional and project-based C. Matrix Structure
structures?
A. Hierarchical Structure
B. Flat Structure
C. Matrix Structure
D. Network Structure

OIM352- Management Science Prepared by: Dr.J.Suresh, Prof-CSE

Students have to prepare answers for the following questions at the end of the lecture

Marks CO Bloom’s
Qn
Question Knowledge
No
Level
1 Define management. 2 Marks CO1 Remembering
2 Explain the importance of management in achieving 6 Marks CO1 Understanding
organizational goals.
3 Describe the functions of management with examples. 8 Marks CO1 Remembering
4. Discuss the various types of organizational structures 13 Marks CO1 Understanding
and their impact on business operations.

OIM352- Management Science Prepared by: Dr.J.Suresh, Prof-CSE

 Lecture
Unit 1 INTRODUCTION TO MANAGEMENT AND
ORGANISATION 2
Topics Functions of Management: An Overview
Bloom’s
Learning Outcome (LO) At the end of this lecture, students will be able to
Knowledge Level
LO1 Students will be able to define the key functions of management. Remembering
LO2 Students will understand and apply the principles of management Understanding
functions to real-world scenarios.

Functions of Management:- To achieve the organisational objectives managers at all levels of

organization should perform different functions. A function is a group of similar activities. The list
of management functions varies from author to author with the number of functions varying from
three to eight.
Different authors presented different variations. By combining some of functions, these are broadly
grouped into Planning, Organising, Staffing, Directing, and Controlling.
1) Planning: Planning is the conscious determination of future course ofaction. This involves why
an action, what action, how to take action, and when to take action. Thus, planning includes
determination of specific objectives, determining projects and programs, setting policies and
strategies, setting rules and procedures and preparing budgets.

2) Organising: Organising is the process of dividing work intoconvenient tasks or duties, grouping
of such duties in the form of positions, grouping of various positions into departments and sections,
assigning duties to individual positions, and delegating authority to each positions so that the work
is carried out as planned. It is viewed as a bridge connecting the conceptual idea developed in
creating and planning to the specific means for accomplishment these ideas.

3) Staffing: Staffing involves manning the various positions created bythe organizing process. It
includes preparing inventory of personal available and identifying the sources of people, selecting
people, training and developing them, fixing financial compensation, appraising them periodically
etc.

4) Directing: when people are available in the organization, they mustknow what they are expected
to do in the organization. Superior managers fulfill this requirement by communicating to
subordinates about their expected behavior. Once subordinates are oriented, the superiors have
continuous responsibility of guiding and leading them for better work performance and motivating
them to work with zeal and enthusiasm. Thus, directing includes communicating, motivating and
leading.

Controlling: Controlling involves identification of actual results,comparison of actual results with

expected results as set by planning process, identification of deviations between the two, if any, and
taking of corrective action so that actual results match with expected results.

LEVELS OF MANAGEMENT
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

OIM352- Management Science Prepared by: Dr.J.Suresh, Prof-CSE

time on planning and coordinating functions. The role of the top management can be summarized
as follows -
• Top management lays down the objectives and broad policies of the enterprise.
• It issues necessary instructions for preparation of department budgets, procedures, schedules
etc.
• It prepares strategic plans & policies for the enterprise.
• It appoints the executive for middle level i.e. departmental managers.
• It controls & coordinates the activities of all the departments.
• It is also responsible for maintaining a contact with the outside world.
• It provides guidance and direction.
• 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 –
• They execute the plans of the organization in accordance with the policies and directives of
the top management.
• They make plans for the sub-units of the organization.
• They participate in employment & training of lower level management.
• They interpret and explain policies from top level management to lower level.
• They are responsible for coordinating the activities within the division or department.
• It also sends important reports and other important data to top level management.
• They evaluate performance of junior managers.
• They are also responsible for inspiring lower level managers towards better performance
3. Lower Level of Management
Lower level is also known as supervisory / operative level of management. It consists of supervisors,
foreman, section officers, superintendent etc. According to R.C. Davis, ―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 -
Assigning of jobs and tasks to various workers.
• They guide and instruct workers for day to day activities.
• They are responsible for the quality as well as quantity of production.
• They are also entrusted with the responsibility of maintaining good relation in the
organization.
• They communicate workers problems, suggestions, and recommendatory appeals etc to the
higher level and higher level goals and objectives to the workers.
• They help to solve the grievances of the workers.
• They supervise & guide the sub-ordinates.
• They are responsible for providing training to the workers.
• They arrange necessary materials, machines, tools etc for getting the things done.
• They prepare periodical reports about the performance of the workers.
• They ensure discipline in the enterprise.
• They motivate workers.
• They are the image builders of the enterprise because they are in direct contact with the
workers.

OIM352- Management Science Prepared by: Dr.J.Suresh, Prof-CSE

 Assessment questions to the lecture

Qn Bloom’s
Question Answer
No Knowledge Level
1 Which of the following is not a function of Correct Answer: Understanding
management? d) Innovating
a) Planning
b) Organizing
c) Leading
d) Innovating
The function of management that involves Correct Answer: Understanding
setting goals and deciding how to achieve them b) Planning
is called:
a)Organizing
b)Planning
c)Leading
d) Controlling
Monitoring performance and making Correct Answer: Remembering
necessary changes is part of which d) Controlling
management function?
a)Planning
b)Organizing
c)Leading
d) Controlling

Students have to prepare answers for the following questions at the end of the lecture

Marks CO Bloom’s
Qn
Question Knowledge
No
Level
1 Define the function of planning in management. 2 Marks CO1 Remembering
2 Explain the process of organizing in management and its 6 Marks CO1 Understanding
significance.
3 Discuss the role of leading in management and how it 8 Marks CO1 Remembering
impacts organizational performance.
4. Illustrate the functions of management with examples 13 Marks CO1 Understanding
from a real-world organization, detailing how each
function is implemented and its impact on the
organization’s success .

OIM352- Management Science Prepared by: Dr.J.Suresh, Prof-CSE

 Lecture
Unit 1 INTRODUCTION TO MANAGEMENT AND
ORGANISATION 3
Topics Systems Approach to Management
Bloom’s
Learning Outcome (LO) At the end of this lecture, students will be able to
Knowledge Level
LO1 Students will be able to define the systems approach to management. Remembering
LO2 Students will understand and apply the principles of the systems approach Understanding
in real-world management scenarios.

The systems approach to management views an organization as a complex, interconnected network

of interdependent components working together to achieve common goals. This approach
emphasizes the importance of understanding relationships, processes, and the holistic nature of
organizational operations.

1. Definition of Systems Approach

o Definition: The systems approach is a perspective that considers an organization as
a system composed of interrelated and interdependent parts working together to
achieve common objectives.
o Impact: By viewing the organization holistically, managers can better understand
how changes in one part affect other parts, leading to more effective decision-making
and problem-solving.
2. Components of a System
o Elements: The basic parts of a system, including inputs, processes, outputs,
feedback, and environment.
o Impact: Understanding each component helps in identifying how resources are
transformed and how outcomes are achieved.
3. Interdependence and Interaction
o Interrelationships: All parts of a system are interconnected and changes in one part
affect others.
o Impact: This concept emphasizes the need for coordination and communication
among different parts of the organization.
4. Holistic View
o Whole vs. Parts: The systems approach emphasizes the whole organization rather
than individual parts.
o Impact: This perspective helps in understanding the broader context and long-term
effects of decisions.

5. Feedback Loops

OIM352- Management Science Prepared by: Dr.J.Suresh, Prof-CSE

 o Feedback: Information that helps in evaluating the performance and making
necessary adjustments.
o Impact: Feedback mechanisms are crucial for continuous improvement and
adaptation to changing environments.
6. Boundary and Environment
o Boundary: Defines the limits of the system.
o Environment: External factors that influence the system.
o Impact: Recognizing boundaries and environmental influences helps in
understanding external impacts on the organization.
Relevant Code Books and Clauses
• ISO 9001:2015, Clause 4.1 (Understanding the Organization and its Context):
Emphasizes the importance of understanding the organization as a system within its external
context.
• ISO 9001:2015, Clause 4.4 (Quality Management System and its Processes): Focuses
on the identification and interaction of processes as a part of the system.
Problem-Solving with Code Book References

Problem Example: A manufacturing company is experiencing delays in production due to a lack

of coordination between the procurement and production departments.

Solution:

1. Define the System: Identify procurement and production as interdependent components of

the system.
2. Analyze Interrelationships: Assess how delays in procurement affect production
schedules.
3. Implement Feedback Loops: Establish communication channels for real-time feedback
between departments.
4. Adjust Processes: Align procurement schedules with production needs to ensure timely
availability of materials.
Advantages and Limitations

Advantages:

• Holistic Understanding: Provides a comprehensive view of the organization.

• Improved Coordination: Enhances interdepartmental communication and coordination.
• Adaptability: Facilitates better adaptation to changes in the environment.

OIM352- Management Science Prepared by: Dr.J.Suresh, Prof-CSE

Limitations:

• Complexity: Can be difficult to analyze and manage due to the complexity of interactions.
• Resource Intensive: Requires significant resources for implementation and maintenance.
• Resistance to Change: Employees may resist changes in processes and interactions.
Conclusion
The systems approach to management provides a valuable framework for understanding and
managing the complex interactions within an organization. By focusing on the holistic nature of
organizational operations, managers can improve decision-making, coordination, and adaptability.

Assessment questions to the lecture

Qn Bloom’s
Question Answer
No Knowledge Level
1 Which of the following best describes the Correct Answer: Understanding
systems approach to management? b) Views the
organization as a
a) Focuses on individual parts of the whole with
organization interrelated parts
b) Views the organization as a whole with
interrelated parts
c) Emphasizes short-term goals
d) Ignores external factors

Feedback in a system helps to: Correct Answer: Understanding

b) Evaluate
a)Increase production speed performance and
b) Evaluate performance and make adjustments make
c)Define the system boundary adjustments
d) Eliminate interdependence

The environment of a system refers to: Correct Answer: Remembering

b) The external
a) The internal processes of the system factors that
b) The external factors that influence the system influence the
c) The boundaries within the system system
d) The individual components of the system

OIM352- Management Science Prepared by: Dr.J.Suresh, Prof-CSE

Students have to prepare answers for the following questions at the end of the lecture

Marks CO Bloom’s
Qn
Question Knowledge
No
Level
1 Define the systems approach to management. 2 Marks CO1 Remembering
2 Explain the importance of feedback loops in the 6 Marks CO1 Understanding
systems approach to management.
3 Discuss the concept of interdependence and interaction 8 Marks CO1 Remembering
within the systems approach to management.
4. Illustrate the systems approach to management with a 13 Marks CO1 Understanding
real-world example, detailing how each component
(inputs, processes, outputs, feedback, and environment)
interacts and contributes to achieving organizational
goals.

OIM352- Management Science Prepared by: Dr.J.Suresh, Prof-CSE

 Lecture
Unit 1 INTRODUCTION TO MANAGEMENT AND
ORGANISATION 4
Topics Taylor's Scientific Management Theory

Bloom’s
Learning Outcome (LO) At the end of this lecture, students will be able to
Knowledge Level
LO1 Students will be able to define Taylor's Scientific Management Theory. Remembering
LO2 Students will understand and apply the principles of Taylor's Scientific Understanding
Management in real-world management scenarios.

Frederick Winslow Taylor, known as the father of scientific management, introduced his
management theory in the early 20th century. Taylor's Scientific Management Theory aims to
improve economic efficiency, especially labor productivity, through systematic study and analysis
of workflows.
1. Principles of Scientific Management
o Science, Not Rule of Thumb: Replace traditional work methods based on rules of
thumb with scientifically developed methods.
▪ Impact: This principle promotes efficiency and standardization, reducing
variability in work processes.
o Harmony, Not Discord: Ensure cooperation between management and workers.
▪ Impact: This principle emphasizes teamwork and collaboration, leading to
better industrial relations and productivity.
o Cooperation, Not Individualism: Encourage collective effort rather than
individualism.
▪ Impact: This fosters a collaborative work environment, enhancing
productivity and morale.
o Development of Each Worker to Their Greatest Efficiency and Prosperity:
Provide training and development opportunities to enhance worker capabilities.
▪ Impact: This principle aims at skill development, leading to improved
performance and career growth.
2. Scientific Job Analysis
o Time and Motion Studies: Analyze tasks to determine the most efficient way to
perform them.
▪ Impact: Helps in optimizing workflows and eliminating unnecessary
motions, thus saving time and effort.
3. Standardization of Tools and Equipment
o Standardized Work Tools: Use uniform tools and procedures for all tasks.
▪ Impact: Reduces inconsistency and increases efficiency.
4. Scientific Selection and Training of Workers

OIM352- Management Science Prepared by: Dr.J.Suresh, Prof-CSE

 o Recruitment and Training: Select workers based on scientific criteria and provide
adequate training.
▪ Impact: Ensures that workers are well-suited for their tasks, leading to
higher productivity.
5. Equal Division of Work and Responsibility
o Shared Responsibilities: Divide work and responsibility equally between
management and workers.
▪ Impact: Promotes a balanced work environment where both parties
contribute to the success of the organization.
Relevant Code Books and Clauses
• ISO 9001:2015, Clause 7.2 (Competence): Emphasizes the importance of competent
personnel to perform tasks efficiently.
• ISO 9001:2015, Clause 8.5.1 (Control of Production and Service Provision): Focuses on
the controlled conditions necessary for efficient operations.
Problem-Solving with Code Book References

Problem Example: A manufacturing unit is facing low productivity due to inconsistent work
methods.
Solution:
1. Scientific Job Analysis: Conduct time and motion studies to identify inefficiencies.
2. Standardization: Implement standardized tools and procedures.
3. Training: Provide targeted training to workers based on the findings.
4. Cooperation: Foster a cooperative work environment between management and workers.
Advantages and Limitations

Advantages:

• Efficiency: Increases productivity through optimized work methods.

• Standardization: Reduces variability and ensures consistency in work processes.
• Skill Development: Enhances worker capabilities through training and development.
• Improved Management: Facilitates better planning and control of operations.
Limitations:

• Rigidity: May lead to inflexibility in adapting to changes.

• Dehumanization: Overemphasis on efficiency can neglect human aspects and lead to
worker dissatisfaction.
• High Initial Costs: Implementing scientific management principles can be resource-
intensive initially.
Taylor's Scientific Management Theory revolutionized the way organizations approach efficiency
and productivity. By applying scientific principles to management practices, organizations can

OIM352- Management Science Prepared by: Dr.J.Suresh, Prof-CSE

achieve significant improvements in performance. However, it is essential to balance efficiency
with human factors to ensure a motivated and satisfied workforce.

Assessment questions to the lecture

Qn Bloom’s
Question Answer
No Knowledge Level
1 Which principle of scientific management Correct Answer: Understanding
emphasizes the replacement of traditional b) Science, Not
Rule of Thumb
work methods with scientifically developed
methods? a) Harmony, Not Discord
b) Science, Not Rule of Thumb
c) Cooperation, Not Individualism
d) Development of Each Worker
2 The use of standardized tools and procedures Correct Answer: Understanding
in scientific management helps to: b) Reduce
inconsistency and
a) Increase individualism among workers increase efficiency
b) Reduce inconsistency and increase efficiency
c) Promote traditional work methods
d) Decrease productivity
3 Time and motion studies are conducted to: Correct Answer: Remembering
b) Identify the
a) Increase discord between management and most efficient way
workers to perform tasks
b) Identify the most efficient way to perform tasks
c)Standardize equipment only
d) Promote individualism among workers

Students have to prepare answers for the following questions at the end of the lecture

OIM352- Management Science Prepared by: Dr.J.Suresh, Prof-CSE

 Marks CO Bloom’s
Qn
Question Knowledge
No
Level
1 Define Taylor's Scientific Management Theory. 2 Marks CO1 Remembering
2 Explain the principle of "Science, Not Rule of Thumb" in 6 Marks CO1 Understanding
Taylor's Scientific Management Theory.
3 Discuss the impact of scientific job analysis on 8 Marks CO1 Remembering
organizational productivity.
4. Illustrate Taylor's Scientific Management Theory with a 13 Marks CO1 Understanding
real-world example, detailing how each principle
(science, harmony, cooperation, development) is applied
and its effects on organizational efficiency and worker
satisfaction.

OIM352- Management Science Prepared by: Dr.J.Suresh, Prof-CSE

 Lecture
Unit 1 INTRODUCTION TO MANAGEMENT AND
ORGANISATION 5
Topics Fayal's Principles of Management

Bloom’s
Learning Outcome (LO) At the end of this lecture, students will be able to
Knowledge Level
LO1 Students should be able to list and define Fayol’s 14 principles of Remembering
management.
LO2 Students should be able to explain how these principles apply in real- Understanding
world management scenarios and assess their relevance in current
business practices.

Henri Fayol, a French industrialist and management theorist, introduced 14 principles of

management in his 1916 work Administration Industrielle et Générale. His principles have had a
profound impact on modern management practices and are still widely taught and applied today.
Fayol’s approach focuses on management as a comprehensive function essential for any business
organization. He emphasized that management involves forecasting, planning, organizing,
commanding, coordinating, and controlling.

Fayol's 14 Principles of Management

1. Division of Work: Specialization increases efficiency by allowing individuals to build

expertise in specific tasks.
2. Authority and Responsibility: Authority gives the right to give orders, while responsibility
ensures accountability.
3. Discipline: Clear and fair disciplinary measures are essential for smooth functioning.
4. Unity of Command: Each employee should receive orders from only one superior to avoid
confusion.
5. Unity of Direction: Organizational activities should have a single plan and be directed
toward common objectives.
6. Subordination of Individual Interest to General Interest: Organizational goals should
take precedence over individual preferences.
7. Remuneration of Personnel: Fair compensation should be provided to employees to ensure
satisfaction and motivation.
8. Centralization and Decentralization: The degree of centralization depends on the
circumstances of the business; both extremes should be avoided.
9. Scalar Chain: A clear line of authority should be established, from top management to the
lowest level.
10. Order: There should be a place for everything, and everything should be in its place.
11. Equity: Managers should treat employees fairly, maintaining a sense of justice.
12. Stability of Tenure of Personnel: High employee turnover should be minimized by
offering job security and career stability.
13. Initiative: Encouraging employees to take initiative leads to high levels of engagement and
creativity.
14. Esprit de Corps: Promoting team spirit fosters harmony and unity within the organization.

Detailed Explanation of Each Principle

OIM352- Management Science Prepared by: Dr.J.Suresh, Prof-CSE

 1. Division of Work: Specialization improves output by focusing efforts on specific tasks. For
example, in an assembly line, each worker is responsible for a particular operation, leading
to increased efficiency.
2. Authority and Responsibility: Authority is both formal and informal; it involves the power
to make decisions and the ability to lead. Responsibility is its counterpart, ensuring that
authority is used correctly.
3. Discipline: Discipline is achieved through agreements between the organization and its
employees. It involves obedience, energy, behavior, and respect for rules.
4. Unity of Command: A worker should only have one direct supervisor, which simplifies
reporting structures and reduces confusion.
5. Unity of Direction: A unified direction ensures that efforts are channeled toward the
organization's goals, avoiding conflicts and mismanagement.
6. Subordination of Individual Interest to General Interest: Organizational goals should
always override personal objectives for the greater good.
7. Remuneration of Personnel: Employees should be paid fairly, based on their contribution
and performance, to ensure job satisfaction.
8. Centralization and Decentralization: Centralization reduces decision-making at lower
levels, while decentralization empowers subordinates. A balanced approach is needed
depending on the business context.
9. Scalar Chain: The line of command should be respected, but flexibility (like the
"gangplank" concept) should be allowed for urgent communication.
10. Order: This principle calls for the right person in the right place and materials arranged
logically for efficient operations.
11. Equity: Fair and kind treatment of employees builds trust and enhances motivation.
12. Stability of Tenure of Personnel: A stable workforce improves organizational knowledge
and efficiency. High turnover is costly and reduces effectiveness.
13. Initiative: Encouraging employees to take initiative leads to innovation, as employees are
more engaged when their ideas are valued.
14. Esprit de Corps: Teamwork and collaboration build morale, leading to a strong and united
organization.
Relevant Code Books and Clauses
1. Kanishka Bedi, Production and Operations Management, Oxford University Press,
2007: This reference discusses management theories, including Fayol’s principles, in the
context of operations management.
2. Stoner, Freeman, Gilbert, Management, 6th Ed, Pearson Education, New Delhi, 2004:
This book outlines the classical management theories with a focus on practical applications.

Problem Example Using Fayol’s Principles

Scenario: A company is struggling with high employee turnover, low morale, and unclear reporting
structures. How can Fayol’s principles be applied to address these issues?

Solution Approach:
1. Division of Work: Assign specialized tasks based on employees’ skills.
2. Unity of Command: Clarify reporting lines so each employee reports to only one manager.
3. Remuneration of Personnel: Implement a fair compensation system that aligns with
industry standards.
4. Stability of Tenure of Personnel: Create job security initiatives and career development
plans to retain staff.

Advantages and Limitations of Fayol’s Principles

OIM352- Management Science Prepared by: Dr.J.Suresh, Prof-CSE

Advantages:
• Provides a clear and systematic framework for managing organizations.
• Emphasizes specialization, discipline, and fairness, leading to efficient operations.
• Adaptable to various types of organizations and business environments.
Limitations:
• Some principles like centralization vs. decentralization can be contradictory depending on
the situation.
• The theory assumes that the organization is stable and does not consider rapid changes in
the business environment.
• It is more suitable for hierarchical organizations and may not fit modern agile and dynamic
structures.
Conclusion
Fayol’s 14 principles of management provide a timeless framework for organizational management.
While some principles may need adaptation for today’s business environment, they remain relevant
in promoting efficiency, clarity, and teamwork.

Assessment questions to the lecture

Qn Bloom’s
Question Answer
No Knowledge Level
1 Which of the following is NOT one of Correct Answer: Understanding
Fayol’s 14 principles of management? d. Free Market
Policy
a. Division of Work
b. Unity of Direction
c. Decentralization
d. Free Market Policy

2 Fayol’s principle of ‘Unity of Command’ states Correct Answer: Understanding

that: c. Employees
should receive
a. Employees should receive orders from multiple orders from only
supervisors. one superior.
b. There should be a single plan for achieving
organizational goals.
c. Employees should receive orders from only one
superior.
d. Employees should be paid equally.
3 Which principle emphasizes that Correct Answer: Remembering
organizational goals should take precedence b. Subordination of
over individual interests? Individual Interest

a. Discipline
b. Subordination of Individual Interest
c. Centralization
d. Scalar Chain

OIM352- Management Science Prepared by: Dr.J.Suresh, Prof-CSE

Students have to prepare answers for the following questions at the end of the lecture

Marks CO Bloom’s
Qn
Question Knowledge
No
Level
1 Define Fayol’s principle of ‘Scalar Chain. 2 Marks CO1 Remembering
2 Discuss the significance of ‘Division of Work’ and 6 Marks CO1 Understanding
Authority and Responsibility’ in management.
3 How does Fayol’s principle of ‘Unity of Command’ 8 Marks CO1 Remembering
help in resolving conflicts within an organization?
4. Explain Fayol’s 14 principles of management with 13 Marks CO1 Understanding
relevant examples and critically evaluate their
applicability in today’s business environment.

OIM352- Management Science Prepared by: Dr.J.Suresh, Prof-CSE

 Lecture
Unit 1 INTRODUCTION TO MANAGEMENT AND
ORGANISATION 6
Topics Maslow's Hierarchy of Human Needs

Bloom’s
Learning Outcome (LO) At the end of this lecture, students will be able to
Knowledge Level
LO1 Students should be able to define Maslow’s Hierarchy of Needs and list Remembering
the five levels in order.
LO2 Students should be able to explain how this theory applies in the Understanding
workplace and analyze its relevance in modern management practices.

Maslow’s Hierarchy of Needs Theory

Abraham Maslow is well renowned for proposing the Hierarchy of Needs Theory in 1943. This
theory is a classical depiction of human motivation. This theory is based on the assumption that
there is a hierarchy of five needs within each individual. The urgency of these needs varies. These
five needs are as follows-
According to Maslow, individuals are motivated by unsatisfied needs. As each of these needs is
significantly satisfied, it drives and forces the next need to emerge. Maslow grouped the five needs
into two categories - Higher-order needs and Lower-order needs. The physiological and the
safety needs constituted the lower-order needs. These lower-order needs are mainly satisfied
externally. The social, esteem, and self-actualization needs constituted the higher-order needs.
These higher-order needs are generally satisfied internally, i.e., within an individual.
1. Physiological needs- These are the basic needs of air, water, food, clothing and shelter. In other
words, physiological needs are the needs for basic amenities of life.

2. Safety needs- Safety needs include

physical, environmental and emotional safety and protection. For instance- Job security, financial
security, protection from animals, family security, health security, etc.
3. Social needs- Social needs include the need for love, affection, care, belongingness, and
friendship.
4. Esteem needs- Esteem needs are of two types: internal esteem needs

(self- respect, confidence, competence, achievement and freedom) and external esteem needs
(recognition, power, status, attention and admiration).
5. Self-actualization need- This include the urge to become what you are capable of becoming /
what you have the potential to become. It includes the need for growth and self-contentment. It also
includes desire for gaining more knowledge, social- service, creativity and being aesthetic. The self-
actualization needs are never fully satiable. As an individual grows psychologically, opportunities
keep cropping up to continue growing.
Implications of Maslow’s Hierarchy of Needs Theory for Managers
As far as the physiological needs are concerned, the managers should give employees appropriat
salaries to purchase the basic necessities of life. Breaks and eating opportunities should be given t
employees.
As far as the safety needs are concerned, the managers should provide the employees job security,
saf and hygienic work environment, and retirement benefits so as to retain them.
As far as social needs are concerned, the management should encourage teamwork and organize
socia events.

OIM352- Management Science Prepared by: Dr.J.Suresh, Prof-CSE

As far as esteem needs are concerned, the managers can appreciate and reward employees on
accomplishing and exceeding their targets. The management can give the deserved employee higher
jo rank / position in the organization.
As far as self-actualization needs are concerned, the managers can give the employees challenging
job in which the employees‟ skills and competencies are fully utilized. Moreover, growth
opportunities ca be given to them so that they can reach the peak.
The managers must identify the need level at which the employee is existing and then those needs
can be utilized as push for motivation.
Limitations of Maslow’s Theory
It is essential to note that not all employees are governed by same set of needs. Different
individuals may be driven by different needs at same point of time. It is always the most powerful
unsatisfied need that motivates an individual.
The theory is not empirically supported.
The theory is not applicable in case of starving artist as even if the artist‟s basic needs are not
satisfied, he will still strive for recognition and achievement.

Assessment questions to the lecture

Qn Bloom’s
Question Answer
No Knowledge Level
1 Which of the following is the first level in Correct Answer: Understanding
Maslow’s hierarchy of needs? c. Physiological
Needs
a. Safety Needs
b. Social Needs
c. Physiological Needs
d. Esteem Needs

2 According to Maslow, which need represents Correct Answer: Understanding

the desire to achieve one’s full potential? b. Safety Needs

a. Esteem Needs
b. Safety Needs
c. Self-Actualization Needs
d. Social Needs

3 Which of the following needs includes the Correct Answer: Remembering

desire for job security and a stable work b. Safety Needs
environment?
a. Social Needs
b. Safety Needs
c. Esteem Needs
d. Self-Actualization Needs

OIM352- Management Science Prepared by: Dr.J.Suresh, Prof-CSE

 Students have to prepare answers for the following questions at the end of the lecture

Marks CO Bloom’s
Qn
Question Knowledge
No
Level
1 Define self-actualization according to Maslow’s 2 Marks CO1 Remembering
hierarchy of needs
2 Explain
. how social needs and esteem needs influence 6 Marks CO1 Understanding
motivation in a workplace.
3 Discuss the role of safety needs in employee retention 8 Marks CO1 Remembering
and motivation strategies.
4. Explain Maslow’s hierarchy of needs with examples and 13 Marks CO1 Understanding
critically evaluate its applicability in a diverse
workplace.

OIM352- Management Science Prepared by: Dr.J.Suresh, Prof-CSE

 Lecture
Unit 1 INTRODUCTION TO MANAGEMENT AND
ORGANISATION 7
Topics McGregor's Theory X and Theory Y

Bloom’s
Learning Outcome (LO) At the end of this lecture, students will be able to
Knowledge Level
LO1 Students should be able to define Theory X and Theory Y and describe Remembering
their core assumptions.
LO2 Students should be able to analyze different management styles based on Understanding
these theories and assess their applicability in various organizational
contexts.

Theory X and Theory Y

In 1960, Douglas McGregor formulated Theory X and Theory Y suggesting two aspects of human
behaviour at work, or in other words, two different views of individuals (employees): one of which
is negative, called as Theory X and the other is positive, so called as Theory Y. According to
McGregor, the perception of managers on the nature of individuals is based on various assumptions.

Assumptions of Theory X

• An average employee intrinsically does not like work and tries to escape it whenever
possible.
• Since the employee does not want to work, he must be persuaded, compelled, or warned
with punishment so as to achieve organizational goals. A close supervision is required on
part of managers. The managers adopt a more dictatorial style.
• Many employees rank job security on top, and they have little or no aspiration/ ambition.
• Employees generally dislike responsibilities.
• Employees resist change.
• An average employee needs formal direction.

Assumptions of Theory Y

• Employees can perceive their job as relaxing and normal. They exercise their physical and
mental efforts in an inherent manner in their jobs.
• Employees may not require only threat, external control and coercion to work, but they can
use self-direction and self-control if they are dedicated and sincere to achieve the
organizational objectives.
• If the job is rewarding and satisfying, then it will result in employees‟ loyalty and
commitment to organization.
• An average employee can learn to admit and recognize the responsibility. In fact, he can
even
• learn to obtain responsibility.
• The employees have skills and capabilities. Their logical capabilities should be fully
utilized. In other words, the creativity, resourcefulness and innovative potentiality of the
employees can be utilized to solve organizational problems.

Thus, we can say that Theory X presents a pessimistic view of employees‟ nature and behaviour at
work, while Theory Y presents an optimistic view of the employees‟ nature and behaviour at work.

OIM352- Management Science Prepared by: Dr.J.Suresh, Prof-CSE

If correlate it with Maslow‟s theory, we can say that Theory X is based on the assumption that the
employees emphasize on the physiological needs and the safety needs; while Theory X is based on
the assumption that the social needs, esteem needs and the self-actualization needs dominate the
employees.
McGregor views Theory Y to be more valid and reasonable than Theory X. Thus, he encouraged
cordial team relations, responsible and stimulating jobs, and participation of all in decision-making
process.

Implications of Theory X and Theory Y

Quite a few organizations use Theory X today. Theory X encourages use of tight control and
supervision It implies that employees are reluctant to organizational changes. Thus, it does not
encourage innovation
Many organizations are using Theory Y techniques. Theory Y implies that the managers should
creat and encourage a work environment which provides opportunities to employees to take
initiative and self direction. Employees should be given opportunities to contribute to organizational
well-being. Theory encourages decentralization of authority, teamwork and participative decision
making in an organization Theory Y searches and discovers the ways in which an employee can
make significant contributions i an organization. It harmonizes and matches employees‟ needs and
aspirations with organizational need and aspirations.

System Approach to Management:

Following are the important features of systems approach to management thought:

1. System approach considers the organisation as a dynamic and inter-related set of parts. Each part
represents a department or a sub-system. Each department has its sub-system. Continuous and
effective interaction of sub-systems helps to attain goals of the larger system. Thus, every sub-
system is a system and has sub-systems which together make an organisation a set of mutually
dependent parts and their sub-parts.

2. It considers the impact of both near and distant future on organisational activities. Organisations
constantly respond to changes in the internal and external environmental conditions. They also act
as market leaders in the dynamic, competitive environment.

3. System approach integrates goals of different parts of the organisation (sub-systems or

departments) with the organisation as a whole. It also integrates goals of the organisation with goals
of the environment or society in which it operates. Integration of goals maintains equilibrium or
balance and enables organisations to grow in the dynamic environment.

4. It synthesizes knowledge of different fields of study such as biology, sociology, psychology,

information systems, economics etc. As business organisation deals with different components of
society, it makes best use of different fields of study to improve interaction with its counterparts.

5. System approach enables organisations to frame policies that promote business objectives and
social objectives. Business operates in the social system and social values, culture, beliefs and
ethics are important constituents of business operations.

OIM352- Management Science Prepared by: Dr.J.Suresh, Prof-CSE

Evaluation of System Approach:
The system approach has the following merits:
1. System approach provides a holistic view of the organisations and emphasises on their adaptive
nature. It increases organisation‟s adaptability to environmental changes. The organisation is
studied as a whole and not through its parts. This enables it to adapt to the needs of the environment.
Decisions are made keeping in mind organisation-environment interface.

2. It analyses the system at different levels and inter-relates and integrates it into a unified set of
direction. Starting from individual goals, it focuses on overall organisational goals, synthesizes the
two and converges them into global economy.

3. System approach provides a framework for effective interaction of parts of the organisation in a
specific arrangement for attainment of its goals. It does not focus on one part of the organisation.

4. It considers the impact of environment on the organisation and vice versa. Interaction of external
environment with the internal environment is the most significant contribution of systems theory.

System approach, thus, analyses the organisation as an adaptive and dynamic entity.

5. System approach synthesizes the classical and behavioural theories into a broader framework to
solve managerial problems.

It, thus, focuses on organisations as multi-dimensional in nature.

Limitations of System Approach:
1. Critics of this theory claim this as a theoretical approach to management. The way an organisation
actually works and solves problems (by applying different techniques and methods) has no appeal
in the theory.

2. Relationship amongst parts of the organisation is emphasised upon but the exact nature of inter-
dependence is not defined.

3. Exact relationship between internal and external environment of the organisation is also not
defined.

For example, it specifies that change in economic policies necessitates change in internal policies
of the organisation but what changes are required to match the changes in economic environment is
not talked about.
4. System approach fails to provide uniform approach to management. Management practices
change with changes in environmental variables. No standard set of principles apply to all types of
organisations.

It has added nothing new to the study of management. Even before this approach was introduced,
managerial decisions were taken keeping in mind the environmental variables. No specific decision-
making techniques are offered to deal with specific problems.
5. It fails to provide concepts that apply to all types of organisations. The small organisations are
less adaptive to environmental variables than large organisations. The theory assumes that most of
the organisations are big, complex and open systems. It, thus, fails to provide a unified theory.

OIM352- Management Science Prepared by: Dr.J.Suresh, Prof-CSE

 Assessment questions to the lecture

Qn Bloom’s
Question Answer
No Knowledge Level
1 Which of the following is a key assumption Correct Answer: Understanding
of Theory X? b. Employees
dislike work and
a. Employees naturally seek responsibility. avoid it when
b. Employees dislike work and avoid it when possible
possible.
c. Employees are motivated primarily by self-
fulfillment.
2 In which management
d. Employees style does McGregor’s Correct Answer:
prefer participative Understanding
Theory Y result? c. Participative
management.
a. Authoritative
b. Laissez-faire
c. Participative
d. Coercive

3 Which of the following best describes the Correct Answer: Remembering

impact of Theory Y in an organization? b. High creativity,
trust, and
a. Increased turnover and strict supervision. employee
b. High creativity, trust, and employee engagement.
engagement.
c. Top-down communication with limited
feedback.
d. Focus on compliance and control.

Students have to prepare answers for the following questions at the end of the lecture

Marks CO Bloom’s
Qn
Question Knowledge
No
Level
1 Define Theory X as proposed by McGregor. 2 Marks CO1 Remembering
2 Explain how a manager can apply Theory Y principles 6 Marks CO1 Understanding
to improve employee motivation.
3 Discuss the differences between Theory X and Theory 8 Marks CO1 Remembering
Y and their implications for management.
4. Explain McGregor’s Theory X and Theory Y with 13 Marks CO1 Understanding
examples and critically evaluate their relevance in
today’s organizational environment.

OIM352- Management Science Prepared by: Dr.J.Suresh, Prof-CSE

 Lecture
Unit 1 INTRODUCTION TO MANAGEMENT AND
ORGANISATION 8
Topics Hertzberg's Two Factor Theory of Motivation

Bloom’s
Learning Outcome (LO) At the end of this lecture, students will be able to
Knowledge Level
LO1 Students should be able to define Herzberg’s Two-Factor Theory and Remembering
differentiate between hygiene factors and motivators.
LO2 Students should be able to analyze how this theory can be applied in real- Understanding
world scenarios to enhance employee motivation and organizational
performance.

Herzberg’s Two-factors Theory:

In 1959, Frederick Herzberg, a behavioural scientist proposed a two-factor theory or the motivator-
hygiene theory. According to Herzberg, there are some job factors that result in satisfaction while
there are other job factors that prevent dissatisfaction. According to Herzberg, the opposite of
“Satisfaction” is “No satisfaction” and the opposite of “Dissatisfaction” is “No Dissatisfaction”
“Herzberg called these factors as „dissatisfiers‟ and not motivators, by this he means their presence
or existence does not motivate in the sense of yielding satisfaction, but their

absence would result in dissatisfaction. These are also referred to as „hygiene‟ factors.
In the second group are the „satisfiers‟ in the sense that they are motivators, which are related to
„Job content‟. He included the factors of achievement, recognition, challenge work, advancement
and growth in the job. He says that their presence will yield feelings of satisfactory or no
satisfaction, but not dissatisfaction.

Herzberg classified these job factors into two categories-

a. Hygiene factors- Hygiene factors are those job factors which are essential for existence of
motivation at workplace. These do not lead to positive satisfaction for long-term. But if these factors
are absent / if these factors are non-existant at workplace, then they lead to dissatisfaction. In other
words, hygiene factors are those factors which when adequate/reasonable in a job, pacify the
employees and do not make them dissatisfied. These factors are extrinsic to work. Hygiene factors
are also called as dissatisfiers or maintenance factors as they are required to avoid dissatisfaction.
These factors describe the job environment/scenario. The hygiene factors symbolized the
physiological needs which the individuals wanted and expected to be fulfilled. Hygiene factors
include:

Pay - The pay or salary structure should be appropriate and reasonable. It must be equal and
competitive to those in the same industry in the same domain.

Company Policies and administrative policies - The company policies should not be too rigid.
They should be fair and clear. It should include flexible working hours, dress code, breaks, vacation,
etc.
Fringe benefits - The employees should be offered health care plans (mediclaim), benefits for the
family members, employee help programmes, etc.
Physical Working conditions - The working conditions should be safe, clean and hygienic. The
work equipments should be updated and well-maintained.
Status - The employees‟ status within the organization should be familiar and retained.

OIM352- Management Science Prepared by: Dr.J.Suresh, Prof-CSE

 Interpersonal relations - The relationship of the employees with his peers, superiors and
subordinates should be appropriate and acceptable. There should be no conflict or humiliation
element present.
Job Security - The organization must provide job security to the employees.
b. Motivational factors- According to Herzberg, the hygiene factors cannot be regarded as
motivators. The motivational factors yield positive satisfaction. These factors are inherent to work.
These factors motivate the employees for a superior performance. These factors

are called satisfiers. These are factors involved in performing the job. Employees find these factors
intrinsically rewarding. The motivators symbolized the psychological needs that were perceived as
an additional benefit. Motivational factors include:
Recognition - The employees should be praised and recognized for their accomplishments by the
managers.
Sense of achievement - The employees must have a sense of achievement. This depends on the
job. There must be a fruit of some sort in the job.
Growth and promotional opportunities - There must be growth and advancement opportunities
in an organization to motivate the employees to perform well.
Responsibility - The employees must hold themselves responsible for the work. The managers
should give them ownership of the work. They should minimize control but retain accountability.
Meaningfulness of the work - The work itself should be meaningful, interesting and challenging
for the employee to perform and to get motivated.

Limitations of Two-Factor Theory

The two factor theory is not free from limitations:
1. The two-factor theory overlooks situational variables.

2. Herzberg assumed a correlation between satisfaction and productivity. But the research
conducted by Herzberg stressed upon satisfaction and ignored productivity.

3. The theory‟s reliability is uncertain. Analysis has to be made by the raters. The raters may spoil
the findings by analyzing same response in different manner.

4. No comprehensive measure of satisfaction was used. An employee may find his job acceptable
despite the fact that he may hate/object part of his job.

5. The two factor theory is not free from bias as it is based on the natural reaction of employees
when they are enquired the sources of satisfaction and dissatisfaction at work. They will blame
dissatisfaction on the external factors such as salary structure, company policies and peer
relationship. Also, the employees will give credit to themselves for the satisfaction factor at work.

6. The theory ignores blue-collar workers. Despite these limitations, Herzberg‟s Two-Factor theory
is acceptable broadly.

Implications of Two-Factor Theory

The Two-Factor theory implies that the managers must stress upon guaranteeing the adequacy of
the hygiene factors to avoid employee dissatisfaction. Also, the managers must make sure that the
work is stimulating and rewarding so that the employees are motivated to work and perform harder
and better. This theory emphasize upon job-enrichment so as to motivate the employees. The job
must utilize the employee‟s skills and competencies to the maximum. Focusing on the motivational
factors can improve work-quality.

OIM352- Management Science Prepared by: Dr.J.Suresh, Prof-CSE

 Assessment questions to the lecture

Qn Bloom’s
Question Answer
No Knowledge Level
1 Which of the following is a hygiene factor Correct Answer: Understanding
according to Herzberg’s Two-Factor c. Salary
Theory?
a. Achievement
b. Responsibility
c. Salary
d. Recognition
2 d. Employees
Which prefer
factor is mostparticipative
likely to lead to job Correct Answer: Understanding
satisfaction according to Herzberg? d. Achievement
management.
a. Company Policies
b. Working Conditions
c. Supervision Quality
d. Achievement

3 Which of the following statements best Correct Answer: Remembering

describes Herzberg’s Two-Factor Theory? c. Hygiene factors
prevent
a. Hygiene factors directly increase motivation. dissatisfaction but
b. Motivators prevent job dissatisfaction. do not motivate.
c. Hygiene factors prevent dissatisfaction but do
not motivate.
d. Hygiene factors and motivators have the same
impact on job satisfaction.

Students have to prepare answers for the following questions at the end of the lecture

Marks CO Bloom’s
Qn
Question Knowledge
No
Level
1 Define motivators in Herzberg’s Two-Factor Theory. 2 Marks CO1 Remembering
2 Explain how hygiene factors differ from motivators 6 Marks CO1 Understanding
according to Herzberg.
3 Discuss the impact of both hygiene factors and 8 Marks CO1 Remembering
motivators on employee motivation and job satisfaction.
4. Explain Herzberg’s Two-Factor Theory with examples 13 Marks CO1 Understanding
and critically evaluate its relevance in modern
organizations.

OIM352- Management Science Prepared by: Dr.J.Suresh, Prof-CSE

 Lecture
Unit 1 INTRODUCTION TO MANAGEMENT AND
ORGANISATION 9
Topics Leadership Styles and Social Responsibilities of Management

Bloom’s
Learning Outcome (LO) At the end of this lecture, students will be able to
Knowledge Level
LO1 Students should be able to define various leadership styles and explain Remembering
the concept of social responsibility in management.
LO2 Students should be able to analyze different leadership styles and assess Understanding
their effectiveness in various organizational contexts, as well as
understand how social responsibility can be integrated into business
strategies.

Leadership and Leadership Styles:

Leadership is a process by which an executive can direct, guide and influence the behavior and
work of others towards accomplishment of specific goals in a given situation. Leadership is the
ability of a manager to induce the subordinates to work with confidence and zeal.
Leadership is the potential to influence behaviour of others. It is also defined as the capacity to
influence a group towards the realization of a goal. Leaders are required to develop future visions,
and to motivate the organizational members to want to achieve the visions.

According to Keith Davis, “Leadership is the ability to persuade others to seek defined objectives
enthusiastically. It is the human factor which binds a group together and motivates it towards goals.”
Characteristics of Leadership
It is a inter-personal process in which a manager is into influencing and guiding workers towards
attainment of goals.
It denotes a few qualities to be present in a person which includes intelligence, maturity and
personality.
It is a group process. It involves two or more people interacting with each other.
A leader is involved in shaping and moulding the behaviour of the group towards accomplishment
of organizational goals.
Leadership is situation bound. There is no best style of leadership. It all depends upon tackling with
the situations.
All leaders do not possess same attitude or same perspective. As discussed earlier, few leaders adopt
the carrot approach and a few adopt the stick approach. Thus, all of the leaders do not get the things
done in the same manner. Their style varies. The leadership style varies with the kind of people the
leader interacts and deals with. A perfect/standard leadership style is one which assists a leader in
getting the best out of the people who follow him.
Some of the important leadership styles are as follows:
1.Autocratic leadership style: In this style of leadership, a leader has complete command and hold
over their employees/team. The team cannot put forward their views even if they are best for the
team‟s or organizational interests. They cannot criticize or question the leader‟s way of getting
things done. The leader himself gets the things done. The advantage of this style is that it leads to
speedy decision-making and greater productivity under leader‟s supervision. Drawbacks of this
leadership style are that it leads to greater employee absenteeism and turnover. This leadership style
works only when the leader is the best in performing or when the job is monotonous, unskilled and
routine in nature or where the project is short-term and risky.
2.Democrative/Participative leadership style: The leaders invite and encourage the team
members to play an important role in decision-making process, though the ultimate decision-making
power rests with the leader. The leader guides the employees on what to perform and how to

OIM352- Management Science Prepared by: Dr.J.Suresh, Prof-CSE

perform, while the employees communicate to the leader their experience and the suggestions if
any. The advantages of this leadership style are that it leads to satisfied, motivated and more skilled
employees. It leads to an optimistic work environment and also encourages creativity. This
leadership style has the only drawback that it is time-consuming.
3.Bureaucratic leadership style: Here the leaders strictly adhere to the organizational rules and
policies. Also, they make sure that the employees/team also strictly follows the rules and
procedures. Promotions take place on the basis of employees‟ ability to adhere to organizational
rules. This leadership style gradually develops over time. This leadership style is more suitable
when safe work conditions and quality are required. But this leadership style discourages creativity
and does not make employees self-contented.

4. The Laissez Faire Leadership Style: Here, the leader totally trusts their employees/team to
perform the job themselves. He just concentrates on the intellectual/rational aspect of his work and
does not focus on the management aspect of his work. The team/employees are welcomed to share
their views and provide suggestions which are best for organizational interests. This leadership style
works only when the employees are skilled, loyal, experienced and intellectual.

.
Social Responsibility of Management:
Social responsibility refers to the process with includes several activities from providing safe
products and services to giving apportion of the company‟s profits to welfare organizations.
Responsibility towards shareholders: The business enterprise has the responsibility to provide fair
return on capital to the shareholders. The firm must provide them regular, accurate, and full
information about the working of enterprise in order to fulfill and encourage their interest in the
affairs of the company.
Responsibility towards consumers: The management has to provide quality products and services
to the customers at reasonable prices. It should consider customer suggestions and also plan it
services more effectively through consumer satisfaction survey.
Responsibility towards employees: Good working conditions motivate workers to contribute their
best it is the responsibility of the management recognize their unions and respect their right to
associate with a union of their choices.
Responsibility towards creditors: The business has to repay the loans it has taken from the financial
institutions as per the repayment schedule also it should inform the creditors about the developments
in the company from time-to-time.
Responsibility towards Government: The business firm has to pay its taxes and be fair
in its endeavours. It should also support the government in community development projects.
Responsibility towards competitors: The business firm should always maintain the highest ethical
standards and maintain cordial relations with each of the competitors, which is a critical and
sensitive segment.
Responsibility towards public: Business units have tremendous responsibility towards the general
public to support the cause of community development. Most of the companies maintain public
relations departments exclusively to maintain good relations with the community.

OIM352- Management Science Prepared by: Dr.J.Suresh, Prof-CSE

 Assessment questions to the lecture

Qn Bloom’s
Question Answer
No Knowledge Level
1 Which of the following is a hygiene factor Correct Answer: Understanding
according to Herzberg’s Two-Factor c. Salary
Theory?
a. Achievement
b. Responsibility
c. Salary
d. Recognition
2 d. Employees
Which prefer
factor is mostparticipative
likely to lead to job Correct Answer: Understanding
satisfaction according to Herzberg? d. Achievement
management.
a. Company Policies
b. Working Conditions
c. Supervision Quality
d. Achievement

3 Which of the following statements best Correct Answer: Remembering

describes Herzberg’s Two-Factor Theory? c. Hygiene factors
prevent
a. Hygiene factors directly increase motivation. dissatisfaction but
b. Motivators prevent job dissatisfaction. do not motivate.
c. Hygiene factors prevent dissatisfaction but do
not motivate.
d. Hygiene factors and motivators have the same
impact on job satisfaction.

Students have to prepare answers for the following questions at the end of the lecture

Marks CO Bloom’s
Qn
Question Knowledge
No
Level
1 Define motivators in Herzberg’s Two-Factor Theory. 2 Marks CO1 Remembering
2 Explain how hygiene factors differ from motivators 6 Marks CO1 Understanding
according to Herzberg.
3 Discuss the impact of both hygiene factors and 8 Marks CO1 Remembering
motivators on employee motivation and job satisfaction.
4. Explain Herzberg’s Two-Factor Theory with examples 13 Marks CO1 Understanding
and critically evaluate its relevance in modern
organizations.

OIM352- Management Science Prepared by: Dr.J.Suresh, Prof-CSE

OIM352- Management Science Prepared by: Dr.J.Suresh, Prof-CSE