Professional Documents
Culture Documents
Ans. According to the nature of management, there is a controversy that whether management is a
science or an art. This controversy is very old & is yet to be settled. It should be noted that, learning
process of science is different from that of art. Learning of science includes principles while learning of
art involves its continuous practice.
Management as a Science
Science is a systematic body of knowledge relating to a specific field of study that contains general facts
which explains a phenomenon. It establishes cause and effect relationship between two or more
variables and underlines the principles governing their relationship. These principles are developed
through scientific method of observation and verification through testing.
Science is characterized by following main features:
1. Universally accepted principles Scientific principles represents basic truth about a particular
field of enquiry. These principles may be applied in all situations, at all time & at all places. E.g. law
of gravitation which can be applied in all countries irrespective of the time.
Management also contains some fundamental principles which can be applied universally like the
Principle of Unity of Command i.e. one man, one boss. This principle is applicable to all type of
organization business or non business.
2. Experimentation & Observation Scientific principles
investigation & researching i.e. they are based on logic.
are
derived
through
scientific
E.g. the principle that earth goes round the sun has been scientifically proved. Management
principles are also based on scientific enquiry & observation and not only on the opinion of Henry
Fayol. They have been developed through experiments & practical experiences of large no. of
managers.
E.g. it is observed that fair remuneration to personal helps in creating a satisfied work force.
3. Cause & Effect Relationship Principles of science lay down cause and effect relationship
between various variables.
E.g. when metals are heated, they are expanded. The cause is heating & result is expansion.
The same is true for management; therefore it also establishes cause and effect relationship.
E.g. lack of parity (balance) between authority & responsibility will lead to ineffectiveness. If you
know the cause i.e. lack of balance, the effect can be ascertained easily i.e. ineffectiveness. Similarly
if workers are given bonuses, fair wages they will work hard but when not treated in fair and just
manner, reduces productivity of organization.
4. Test of Validity & Predictability Validity of scientific principles can be tested at any time or
any number of times i.e. they stand the time of test. Each time these tests will give same result.
Moreover future events can be predicted with reasonable accuracy by using scientific principles.
E.g. H2 & O2 will always give H2O.
Attitude towards Subordinates: Delegation of authority requires a certain amount of trust between
the superior and the subordinates. Therefore, the superiors attitude toward his subordinates, and the
subordinates attitude towards the superior are important for delegation. Lack of confidence in
subordinates results that, he may not only avoid delegation, but also does the subordinates work
himself. A superior, who does not have good interpersonal relationships with his subordinates, is unlikely
to delegate authority to subordinates.
Personality traits and experiences of the superior: The personality traits and experiences of a
superior affect the way in which he delegates authority to his subordinates. Autocratic managers are less
likely to delegate authority. Many managers usually do not enjoy guiding, reviewing and cross-examining
their subordinates, and this is unavoidable when authority is delegated.
The Delegants Aspect
Delegation of authority also affected by various factors pertaining to the delegants. These are:
Fear of Criticism: The subordinate may reluctant or hesitant to accept delegated tasks if he suspects
that the credit for success will be taken by the boss, and the criticism for failure will be directed toward
him. He feels that taking responsibility is asking for trouble.
Lack of Information and Resources: Subordinates are reluctant to accept delegation when they do
not have adequate information, knowledge and resources. When tasks are not clearly defined, when
adequate authority is not delegated, when instructions are vague, and resources are scarce,
subordinates are unlikely to do a good job and their enthusiasm for delegated work dwindles.
Lack of Self-Confidence: Sometimes, subordinates may refuse to take up delegated tasks as they may
lack confidence in themselves.
Absence of Rewards and Incentives (Motivation): Many subordinates may be unwilling to take up
additional responsibilities and pressure unless they receive some rewards and incentives for satisfactory
performance. Therefore, all companies should develop a system of rewards and incentives, which leads
to the motivation of the subordinates.
The Organizational Aspect
Apart from the personal factors of the delegator and delegants, delegation of authority also depends on
certain organizational aspects. Organizational factors may necessitate even an autocratic superior to
delegate his authority include the organizations policy towards centralization or decentralization,
availability of managerial personnel, the type of control mechanisms adopted by the organization, the
management philosophy etc. Unfavorable organizational factors may adversely affect the delegation of
authority.
4. Need or Importance of Staffing in an Organization
Staffing is one of the most essential functions for every organization. In fact, in the absence of a good
staffing system no organization can exist for a long duration. Because in every organization all the
resources like, money, material, machine etc are utilized properly through man power. Hence it is too
important that all the personnel (employees) in organization should appoint at the job according to their
ability, talent, aptitude and specializations which can only be possible through a good staffing system.
Thus, it is clear that staffing is too important for every organization.
Some important points which shows how staffing is important for every organization:
Reduces Cost of Production: Staffing also plays an important role in reducing cost of
production. Because it helps in appointing right person at the right job, at the right, time so that no
wastage and mistakes can be made by efficient personnel during the production of products. Hence,
it is clear that it assists in reducing cost of production.
For Job Satisfaction- Staffing is an important source for employees job satisfaction. Because by
means of this system jobs are allocated among the personnel according to their ability, talent,
aptitude and specializations which give employees more satisfaction regarding their jobs. As a result
of that they give their hundred percent efforts behind their jobs.
For meeting Present and Future Needs of Employees- Staffing is very important for fulfilling
present as well as future needs of employees. Because it gives a clear picture to organization that in
coming year how much positions will be vacant and new positions will be established. So that
organization can fulfill those vacant and new positions by appointing the deserved candidates. Thus,
it is clear that staffing fulfills present and future needs of employees in organization.
For maintaining Co-ordination among the Employees- Staffing plays a prominent role in
establishing unity and co-ordination among the employees. Because it assigns their jobs according to
their ability, talent, aptitude and specializations which makes them involved in their tasks and ensure
healthy and co-operative relationship among the employees.
In fact, effective performance of the staff function is necessary to realize the following
benefits:
1. Efficient Performance of Other Functions: Staffing is the key to the efficient performance of
other functions of management. If an organisation does not have competent personnel, it cant
perform planning, organisation and control functions properly.
2. Effective Use of Technology and Other Resources: It is the human factor that is instrumental
in the effective utilisation of latest technology, capital, material, etc. the management can ensure
right kinds of personnel by performing the staffing function.
3. Optimum Utilisation of Human Resources: The wage bill of big concerns is quite high. They
also spend money on recruitment, selection, training and development of employees. In order to get
the optimum output from the personnel, the staffing function should be performed in an efficient
manner.
4. Development of Human Capital: The management is required to determine the manpower
requirements well in advance. It has also to train and develop the existing personnel for career
advancement. This will meet the requirements of the company in future.
5. Motivation of Human Resources: The behaviour of individuals is shaped by many factors such
as education level, needs, socio-cultural factors, etc. that is why, the human aspect of organisation
has become very important. The workers can be motivated through financial and non-financial
incentives.
6. Building Higher Morale: Right type of climate should be created for the workers to contribute to
the achievement of the organisational objectives. By performing the staffing function effectively,
management can show the significance it attaches to the personnel working in the enterprise. This
will increase the morale of the employees.
5. Control techniques provide managers with the type and amount of information they need to measure
and monitor performance. The information from various controls must be tailored to a specific
management level, department, unit, or operation.
To ensure complete and consistent information, organizations often use standardized documents such as
financial, status, and project reports. Each area within an organization, however, uses its own specific
control techniques, described in the following sections.
After the organization has strategies in place to reach its goals, funds are set aside for the necessary
resources and labor. As money is spent, statements are updated to reflect how much was spent, how it
was spent, and what it obtained. Managers use these financial statements, such as an income statement
or balance sheet, to monitor the progress of programs and plans. Financial statements provide
management with information to monitor financial resources and activities. The income
statementshows the results of the organization's operations over a period of time, such as revenues,
expenses, and profit or loss. The balance sheet shows what the organization is worth (assets) at a single
point in time, and the extent to which those assets were financed through debt (liabilities) or owner's
investment (equity).
Financial audits, or formal investigations, are regularly conducted to ensure that financial management
practices follow generally accepted procedures, policies, laws, and ethical guidelines. Audits may be
conducted internally or externally. Financial ratio analysis examines the relationship between specific
figures on the financial statements and helps explain the significance of those figures:
In addition, financial responsibility centers require managers to account for a unit's progress toward
financial goals within the scope of their influences. A manager's goals and responsibilities may focus on
unit profits, costs, revenues, or investments.
Budget controls
A budget depicts how much an organization expects to spend (expenses) and earn (revenues) over a
time period. Amounts are categorized according to the type of business activity or account, such as
telephone costs or sales of catalogs. Budgets not only help managers plan their finances, but also help
them keep track of their overall spending.
A budget, in reality, is both a planning tool and a control mechanism. Budget development processes
vary among organizations according to who does the budgeting and how the financial resources are
allocated. Some budget development methods are as follows:
Bottomup budgeting. Figures come from the lower levels and are adjusted and coordinated as
they move up the hierarchy.
Zerobased budgeting. Managers develop each new budget by justifying the projected
allocation against its contribution to departmental or organizational goals.
Flexible budgeting. Any budget exercise can incorporate flexible budgets, which set meet or
beat standards that can be compared to expenditures.
Marketing controls
Marketing controls help monitor progress toward goals for customer satisfaction with products and
services, prices, and delivery. The following are examples of controls used to evaluate an organization's
marketing functions:
Test marketing is smallscale product marketing to assess customer acceptance. Using surveys
and focus groups, test marketing goes beyond identifying general requirements and looks at what
(or who) actually influences buying decisions.
Marketing statistics measure performance by compiling data and analyzing results. In most
cases, competency with a computer spreadsheet program is all a manager needs. Managers look
at marketing ratios, which measure profitability, activity, and market shares, as well as sales
quotas, which measure progress toward sales goals and assist with inventory controls.
These steps must be repeated periodically until the organizational goal is achieved.