1.

ART SCIENCE PROFESSION

Management as a science
Management is not a complete science but it maybe called an
inexact science of a pseudo science because the theories and
principles can be applied universally, however it may not
always yield the same results. Since human behavior is
dynamic and defers from person to person.
Management based a partial characteristic of science.
1 Universally accepted principles
Management as a science has evolved many fundamental
theories and principles. These are universally accepted which
make management a science. E.g.: Henry Fayols principles of
management.
2 Cause Effect relationship
Management principles evenly establish a cause and effect
relationship between two elements in the organization piece
- rate wage system if adopted will increase the production but
at the same time adversely affect the quality of the product.
3 Predictability of results
Management theories and principles are based on scientific
investigation and analysis. Hence, the results of these
principles are definite, exact and predictable.
4- Verifiability of the principles
Management principles are developed after scientific
enquiries. Therefore, they can be applied to practical business
situations and the results can be test and verified later.
Management as a Profession
A professional manager is one who specializes in planning,
organizing and leading and controlling the efforts of others
and does so by using systemized knowledge, principles and
one who subscribes to the standard of practice and code of
ethics established by a recognized body.
A profession is an occupation carried out by the professionals.
It involves the application of expert knowledge to solve
specific problems or to handle specific tasks assigned to
workers.

Characteristics of a profession

Body of knowledge management is an organized

body of knowledge with an interrelated set of concepts,
principles and techniques that are capable of being
applied in practice.

Specializations there is a growing tendency to select

and appoint highly qualified, trained and experienced
professional to manage tasks in each functional area of
business. E.g.: MNCs that hire experts as managers.

Separate disciplines management studies are

considered a separate discipline in many institutions of
higher learning.

Professional associations there exist set standards

and codes of ethics in many countries to promote the
spread of knowledge in all management areas. E.g.:
IAMA to promote managerial excellence in the country.

Why is management not considered a complete

profession?

Anyone can become a manager- formal management

training and education is not compulsory for anyone to
practice as a manager.
Unlike other professions they are not constrained by a
universal code of conduct.
AIMA is neither empowered to enforce a code of conduct
nor authorized to issue licenses to them
Membership to the AIMA is not compulsory and hence
the question or licensing does not arise.

EVOLUTION OF MANAGEMENT THEORIES

6 ERAS ARE 1. PRE SCIENTIFIC ERA - BEFORE 1880
2. SCIENTIFIC MANAGEMENT ERA 1880 1930
3. HUMAN RELATIONS ERA 1930 -1950
4. MANAGEMENT SCIENCE ERA 1950 1960
5. SYSTEMS APPROACH ERA 1960 1970
6. CONTENGENCY APPROACH 1970 - CURRENT
(The above eras are just where the theories developed. You need
not mention them. The approaches are as follows.)
APPROACHES TO MANAGEMENT

Frederick Winslow Taylors Theory 1875 1915 (scientific

management theory)
Scientific management is -The art of knowing exactly what you
want your men to do and then seeing that they do it in the best and
cheapest way.
Structure of Taylors scientific management1. Determination of a fair days work/tasks
i) Time study observing and recording time required to
perform each element of an operation so as to determine
the standard time in which a job has to be completed.
ii) Motion study the analysis of various body movements
while doing a job. It aims at removing unwanted and
unnecessary movements unwanted movement / strain of
the employee while performing a task. - E.g. Excessive
people on a task, e.g. understaffing, too few people too
many jobs.
iii) Fatigue study is conducted to find out after how time of
work a rest time is required for an average worker so that
he can relax and proceed to his job in a refreshed manner.
2. Scientific selection and training
Workers must be selected on the basis of their aptitude,
efficiency, qualification, work experience and physical
strength, training then takes place based on their overall
eligibility.
3. Standardization
i) Of raw materials, tools, machines, space
ii) Of work conditions
4. Differential piece rate system of wage payment
This system has been devised in order to motivate the
employees both positively and negatively to produce standard
outputs. There are two rates of wage payment - A higher rate per unit of output
- A lower rate per unit of output
HENRY FAYOL (Administrative theory)
14 Principles of Management
1. Division of labour division of labour, which leads to
specialization that in turn, improves the efficiency of the employees.
2. Authority and responsibility must flow in the same direction.
Proper balance between authority and responsibility helps prevent
the misuse of authority and promotes a fair fixation of responsibility.
3. Discipline managers need to create a work force that strives to
achieve organizational goals. The three basic requisites of discipline
are- Discipline supervisors at all levels

- Clear and fair agreement on goals

- Judiciously penalizing the employees
4. Unity of command means an employee should receive orders
from only one superior because, confusion. And a confused
employee will never be able to perform efficiently.
5. Unity of direction the organization must have a single plan of
action to guide managers and employees.
6. Remuneration according to his system of remuneration
personnel should be fair and satisfactory. It should be attractive in
order to employee and retain the best personnel.
7. Subordination of individuals interest to general interest
employees must understand how their performance effects the
performance of the while organization, i.e. employees must sacrifice
their individual interests in favor of larger group objectives.
8. Equity all organizational members are entitled to be treated
with justice and respect. This will lead to a feeling of loyalty and
devotion amongst them, through a combination of kindness and
justice while dealing with them.
9. Stability of tenure Long term employees develop skills that
can improve organizational efficiency, therefore an employee should
be given time to adjust with new work, its environment which can
further help him demonstrate efficiency.
10. Initiative a manager who motivates his employees to think
and act on their own is always better and more successful than ones
who do not. Managers must also allow their employees to be
innovative and creative.
11. Order categorized into two types
- Material order machinery, workstation, there is a place for
everything at an organization and everything in its place.
- Social order right job to the right job and the right person for the
right job.
12. Line of authority/Scalar Chain/ Chain of command the
length of the chain that extends from the top to the bottom of the
organization should be limited. Scalar chain refers to the line of
authority from the highest to the lowest executive for the purpose of
communication. However, in the routine course of business
employees at the same level can communicate with each other
following the principle of Gang Plank.
13. Centralization authority should not be concentrated at the
top of the chain of command, there should a fair balance between
the degree of centralization and decentralization in order to achieve
the best results.
14. Esprit De Corps It is the foundation of a sound organization.
Managers should encourage the Development of shared feelings of
enthusiasm, comradeship and devotion.
ELTON MAYO (BEHAVIORAL APPROACH TOWARDS
MANAGEMENT) Human Resource Management

The behavioral management theory was developed in the first half

of the twentieth century. It refers to how managers should behave in
order to motivate employees and encourage them to perform at
higher levels and be committed to achieving organizational roles.
Three assumptions based on theory of motivation
1. Human needs are never satisfied completely
2. Human behavior is motivated by the need for satisfaction
3. Needs can be classified according to a hierarchical structure
HAWTHORNE STUDIES
1. Illumination Experiment - 1924 -1927
2. Relay Assembly Test 1927 -1929
3. Mass Interviewing Programme 1928 -1930
4. Bank Wiring Observation Room Experiment 1932
SYSTEMS APPROACH
To management it is a concept; it is a concept, which views the
company as the interconnected purposive system that consists of
several sub systems, which can be internal and external. The sub
systems are interconnected and influence each other the system as
a whole.
CONTINGENCY APPROACH
It is an extension of systems approach. T is also known as situational
theory. It says there is no one best way of doing something.
Features:
Management is externally situational
Managers used to adapt themselves to circumstances
Management policies and procedures should respond to the
environment.
Limitations:
Since managerial acts depend on situations, it has not
developed techniques of identifying a certain situation.
It is difficult to conclude what the best solution is to a situation
Managers need to analyze the situation and use ideas from
various schools of thought to find solutions.

2. Managerial roles by Mintzberg

The 10 managerial roles
- Informational

I. Monitor: a manager keeps a close watch over internal

operations, external events, new developments, trends and
pressures, causing changes, new opportunities and treats
which help in taking timely and effective decisions. He also
seeks and receives information.
Scans periodicals and reports
Maintains personal contact with stake holders
II. Disseminators: as a manager gathers information from internal
and external sources and disseminates the same to his
subordinates through memos, reports, emails, circulars, phone
class etc. Also formulates and communicates rules, policies,
programs and value to his subordinates.
III. Spokesperson: a manager is the official communicator of an
organization. The statements made by him are of great
significance. He informs the outside stakeholders about
performances and policies of the organization.
- Interpersonal
IV. Figurehead: as a manager performances symbolic and
ceremonial duties such as signing legal documents. He
represents the organization legally and socially.
V. Leader: the manager defines a structure within which
subordinates work and perform. He motivates, directs,
councils, encourages, communicates with his employees. He
also maintains discipline in order to balance individual and
organizational goal.
VI. Liaison: the manager interacts with his superior and outside
people in order to develop and maintain contacts. These
contacts give access to database, facts and opportunities. He
also maintains information links, both internally and externally
through mails, phone calls and meetings. For this he must
possess excellent networking skills.
- Decisional
VII. Entrepreneur: he initiates a movement in the ongoing project.
He identifies tax seeks opportunities and develops process to
improve the organizations condition and employees well
being. He identifies new ideas and delegates the idea
responsibility to others.
VIII. Disturbance handler: the manager takes collective action
measures during disputes and crisis. He deals with stress to
the organization not internally and externally. This role
involves analysis, evaluates reallocation and support for
solving the problem.
IX. Resource allocation: the manager decides areas when the
organization will. He prepares budgets; self schedules

and determines priorities for the company.

X. Negotiator: on behalf of the organization, represents the
department in the union contracts, sales, purchases, budgets,
etc.

3. Manager v/s leader

1
2
3
4
5
6
7
8

SUBJECT
Essence
Focus
Have
Horizon
Seeks
Approach
Decision
Power

LEADER
Change
Leading people
Followers
Long term
Vision
Sets direction
Facilitates
Charisma

9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25

Appeal to
Energy
Culture
Dynamic
Persuasion
Style
Exchange
Likes
Wants
Risk
Rules
Conflict
Direction
Truth
Concern
Credit
Blame

Heart
Passion
Shapes
Proactive
Sell
Transformational
Excitement
Striving
Achievement
Takes
breaks
uses
New roads
Seeks
What is right
Gives
Takes

4. Planning
Functions of management
In 1916 there were only 4 functions
- Planning
- Organizing
- Coordination
- Controlling

MANAGER
Stability
Manage work
Subordinate
Short term
Objectives
Plans details
Makes
Formal
authority
Head
Control
Enacts
Reactive
Tells
Transactional
Money
Action
Results
Minimizes
Makes
Avoids
Old roads
Establishes
Being right
Takes
Blames

In 1930, Gullick introduced - PODSCoRB

- Planning
- Organizing
- Directing
- Staffing
- Coordinating
- Reporting
- Budgeting.
Planning Definition - by Koontz ODonnell deciding in advance what to do,
how to do it and when to do it and who is to do it?
Meaning it bridges the gap between what we are today and
where we have to go.
Importance
1- Helps the management to face the future with confidence
2- Focuses attention on certain objectives
3- Makes position for contingencies
4- Helps in optimum utilization of resources
5- Leads to / assist in coordinating.
6- Improves overall efficiency
7- Guides decision making
8- Helps in performance evaluation
Types of planning
On the basis of Activities
- Corporate planning undertaken by top-level management.
Sets goals and objectives for the entire organization.
Organizing work, people, systems and ways to achieve to
organizational goals.
- Functional planning derived from corporate planning.
Undertaken for each major function of the organization such
as marketing, finance, personal, production etc.
On the basis of content
- Strategic planning sets long-term directions for the
organization for which it wants to proceed in future. It is the
process of deciding objectives, resources to be used, its
acquisition etc.
- Operational planning short term (period of one year). It is
the procedure of deciding the most efficient use of the
resources already allocated and develops a controlled
mechanism.

 On the basis of time dimension/duration

- Long term more than a year, it is of strategic nature. It may
extend up to a decade. It involves environmental factors,
which directly or indirectly affect the business.
- - Short-term covers a period of one year, related to
functional areas like marketing, finance, production etc.
On the basis of approach adapted
- Proactive planning involves designing a suitable course of
action in anticipation of likely changes in a relevant
environment.
- Reactive planning undertaken in reaction to some changes
in the environment.
Characteristics of planning
- Goal oriented
- Futuristic
- Continuous
- Intellectual process
- All pervasive
- Flexible
- Short term and long term
Steps involved in planning
1. Establish goals and objectives they should be
- Practical
- Achievable
- Workable
- Acceptable.
2. Establish planning premises and constraints
Factors to be considered- Internal and external environment
- Resources
- Visual constraints in the environment.
A
-

Internal premises
Capital
Investment policies
Management labour relations
Management philosophies

B
-

External premises Socio economical

Political
Economical
Technological

3. Identifying alternative courses of action- Plan A

- Plan B
- Plan C
4. Choose the best alternative maximum contribution
minimum cost
5. Follow up Check and maintain a progressive review
5. Decision making
The job of management involves the making of innumerable
decisions. That is why many persons think that management is
decision-making.
The word decides means to come to a conclusion or resolution as
to what one is expected to do at some later time.
Decision is a choice whereby a person comes to a conclusion about
given circumstances/ situation. It represents a course of behavior or
action about what one is expected to do or not to do. Decisionmaking may, therefore, be defined as a selection of one course of
action from two or more alternative courses of action.
In business undertakings, decisions are taken at every step. All
managerial functions viz., planning, organizing, staffing, directing,
coordinating and controlling are carried through decisions. Decisionmaking is thus the core of managerial activities in an organization.
Hence
1. Decision making is a selection process and is concerned with
selecting the best type of alternative.
2. The decision taken is aimed at achieving the organizational
goals.
3. It is concerned with the detailed study of the available
alternatives for finding the best possible alternative.
4. Decision making is a mental process. It is the outline of
constant thoughtful consideration.
5. It leads to commitment. The commitment depends upon the
nature of the decision whether short term or long term.
Features or Characteristics of Decision-Making:
1. Rational Thinking:
It is invariably based on rational thinking. Since the human brain
with its ability to learn, remember and relate many complex factors,
makes the rationality possible.
2. Process:
It is the process followed by deliberations and reasoning.
3. Selective:
It is selective, i.e. it is the choice of the best course among
alternatives. In other words, decision involves selection of the best
course from among the available alternative courses that are

identified by the decision-maker.

4. Purposive:
It is usually purposive i.e. it relates to the end. The solution to a
problem provides an effective means to the desired goal or end.
5. Positive:
Although every decision is usually positive sometimes certain
decisions may be negative and may just be a decision not to decide.
For instance, the manufacturers of VOX Wagan car once decided not
to change the model (body style) and size of the car although the
other rival enterprise (i.e. the Ford Corporation) was planning to
introduce a new model every year, in the USA.
That a negative decision and is equally important was stressed by
Chester I. Bernard-one of the pioneers in Management Thought-who
observed, The fine art of executive decision consists in not deciding
questions that are not now pertinent, in not deciding prematurely, in
not making decisions that cannot be made effective, and in not
making decisions that other should make.
6. Commitment:
Every decision is based on the concept of commitment. In other
words, the Management is committed to every decision it takes for
two reasons- viz., (/) it promotes the stability of the concern and (ii)
every decision taken becomes a part of the expectations of the
people involved in the organisation.
Decisions are usually so much inter-related to the organisational life
of an enterprise that any change in one area of activity may change
the other areas too. As such, the Manager is committed to decisions
not only from the time that they are taken but upto their
successfully implementation.
7. Evaluation:
Decision-making involves evaluation in two ways, viz., (i) the
executive must evaluate the alternatives, and (ii) he should evaluate
the results of the decisions taken by him.

6. Organizational structure
Small companies can use a variety of organizational
structures. However, a small company's organization structure
must be designed to effectively meet its goals and objectives,
according to the Lamar University article titled "Organizational
Structure" on its website. Types of organizational structure in
management can include flat structures as well as functional,
product and geographical-structured organizations.
Flat Organizational Structure
Many small companies use a flat organizational structure,
where very few levels of management separate executives
from analysts, secretaries and lower-level employees. Flat

organizations work best when a company has less than 20

employees, especially if the company employs one or two
employees per department. One advantage of using a flat
organizational structure for management is that decisions can
be made relatively quickly. The flat organizational lacks the
typical bureaucracy of taller organizational structures--those
with many levels of management.
Functional Organizational Structure
A functional organizational structure is centered on job
functions, such as marketing, research and development and
finance. Small companies should use a functional organization
when they want to arrange their organizational structure by
department. For example, a small company may have a
director, two managers and two analysts in the marketing
department. The director would likely report to the Chief
Executive Officer, or CEO, and both managers would report to
the director. In addition, each manager may have an analyst
reporting to him or her. A functional organizational structure
works well when small companies are heavily project-focused.
Directors can assign certain projects to managers, who can
then divvy up tasks with their analysts. The department can
then more effectively meet their project deadlines.
Product Organizational Structure
A product organizational structure has managers reporting to
the president or head of the company by product type. Retail
companies that have stores in various cities primarily use
product organizational structures. However, stores in each city
may still need a local human resources or marketing
department to carry out functions locally. For example, a small
department store company may have a vice president of
sporting goods, housewares and general merchandise at the
corporate office. One manager may report to each vice
president. However, each manager may oversee the work of
one or more field-marketing employees who travel and handle
local marketing stores in several states. These field-marketing
employees may work for the sporting goods manager one
week in League City, Texas, then do merchandising for the
housewares manager another week in the Sugarland, Texas,
market.
Geographical Organizational Structure
The Small Business Administration is responsible for defining
small businesses in different industries. For example, in
manufacturing, the SBA usually considers a company with 500
or fewer employees a small business. Point is, small
businesses are still large enough to use a geographical
organizational structure. A geographical organizational

structure is when companies decentralize the functional areas.

For example, unlike the product organizational structure, there
may be a local marketing, finance, accounting and research
development person based in each region. For example, a
small consumer products food company may be large enough
to place a marketing research manager and analyst in each of
six different regions. This can be important because
consumers in various areas have different tastes. Hence, a
geographical structure will enable the company to better
serve the local market.
7. Staffing
The importance of staffing can be explained using the following
points
1. Effective managerial functions
Staffing deals with human resource of an organization, which
is considered the most vital asset, as it is the people who
make other resources, move. They perform various activities
in the organization in different functional areas like
production marketing finance etc.
2. Builds relationshipsStaff function helps to build proper human relationships in the
organization. Smooth human relations are the key to better
communication and coordination of managerial efforts in an
organization
3. Human resource development
Skilled and experienced staff is the best asset of a business
concern. Staffing helps to inculcate the corporate culture into
the staff, which in turn ensures smooth functioning of all the
managerial aspects of the business.
4. Long-term effect Staffing function has long-term effects on the efficiency of an
organization. Qualified efficient and well-motivated staff is an
asset to the organization. Proper choice of employees can lead
the organization towards the path of success.
5. Essential contribution
Staff selection should be based in the ability of the
prospective employees to meet he future challenges that the
organization is going to face therefore, the contribution of the
staff in their future roles should be taken into account in staff
selection.
6. Improves efficiency
Staffing includes training and development programmes for
the employees of an organization. It improves organizational
productivity through proper selection of organization gets
quality employees and through proper training the
performance levels of the employees can be improved.
7. Maintains harmony
Through proper staffing individuals are not just recruited and

selected but their performance is regularly appraised and

promotions are given on merit. For all these certain rules are
made and duly communicated to all concerned. This brings
about peace and harmony in the organization.
8. Improves job satisfaction
It helps in providing job satisfaction to the employees keeping
their moral high. With proper training and development
programmes heir efficiency improves and they feel assured of
their better career.
9. Better performances
Staffing function helps in proper selection of employees in an
organization. In order to perform better than the other
employees, they develop competence and perform better to
meet the challenges of their job.
10. Optimum utilization of human resources
Staffing function tries to utilize human resources more
effectively and efficiently training and development
programmes help the employers to improve their performance
as well as brings progress for their organization.
8. Training
Importance of Training and Development
Training and career development are very vital in any company or
organization that aims at progressing. Training simply refers to the
process of acquiring the essential skills required for a certain job. It
targets specific goals, for instance understanding a process and
operating a certain machine or system. Career development, on the
other side, puts emphasis on broader skills, which are applicable in
a wide range of situations. This includes decision-making, thinking
creatively and managing people.
I. Help in addressing employee weaknesses:
Most workers have certain weaknesses in their workplace, which
hinder them from giving the best services. Training assists in
eliminating these weaknesses, by strengthening workers skills. A
well-organized development program helps employees gain similar
skills and knowledge, thus bringing them all to a higher uniform
level. This simply means that the whole workforce is reliable, so the
company or organization doesnt have to rely only on specific
employees.
II. Improvement in workers performance
A properly trained employee becomes more informed about
procedures for various tasks. The worker confidence is also boosted
by training and development. This confidence comes from the fact
that the employee is fully aware of his/her roles and responsibilities.
It helps the worker carry out the duties in better way and even find
new ideas to incorporate in the daily execution of duty.
III. Consistency in duty performance
A well-organized training and development program gives the
workers constant knowledge and experience. Consistency is very

vital when it comes to an organizations or companys procedures

and policies. This mostly includes administrative procedures and
ethics during execution of duty.
IV. Ensuring worker satisfaction
Training and development makes the employee also feels satisfied
with the role they play in the company or organization. This is driven
by the great ability they gain to execute their duties. They feel they
belong to the company or the organization that they work for and
the only way to reward it is giving the best services they can.
V. Increased productivity
Through training and development the employee acquires all the
knowledge and skills needed in their day-to-day tasks. Workers can
perform at a faster rate and with efficiency thus increasing overall
productivity of the company. They also gain new tactics of
overcoming challenges when they face them.
VI. Improved quality of services and products
Employees gain standard methods to use in their tasks. They are
also able to maintain uniformity in the output they give. This results
with a company that gives satisfying services or goods.
VII. Reduced cost
Training and development results with optimal utilization of
resources in a company or organization. There is no wastage of
resources, which may cause extra expenses. Accidents are also
reduced during working. All the machines and resources are used
economically, reducing expenditure.
VIII. Reduction in supervision
The moment they gain the necessary skills and knowledge,
employees will become more confident. They will become selfreliant and require only little guidance as they perform their tasks.
The supervisor can depend on the employees decision to give
quality output. This relieves supervisors the burden of constantly
having to give directives on what should be done.
9. Directing - Motivation - X and y theory - Blake mouton
grid Maslow hierarchy
DIRECTING is said to be a process in which the managers
instruct, guide and oversee the performance of the workers to
achieve predetermined goals. Directing is said to be the heart
of management process. Planning, organizing, staffing has got
no importance if direction function does not take place.
Directing initiates action and it is from here actual work starts.
Direction is said to be consisting of human factors. In simple
words, it can be described as providing guidance to workers is
doing work. In field of management, direction is said to be all
those activities, which are designed to encourage the
subordinates to work effectively and efficiently. According to
Human, Directing consists of process or technique by which
instruction can be issued and operations can be carried out as

originally planned Therefore, Directing is the function of

guiding, inspiring, overseeing and instructing people towards
accomplishment of organizational goals.
1.
2.
3.

4.
5.

6.

Direction has got following characteristics:

Pervasive Function - Directing is required at all levels of
organization. Every manager provides guidance and
inspiration to his subordinates.
Continuous Activity - Direction is a continuous activity as it
continuous throughout the life of organization.
Human Factor - Directing function is related to subordinates
and therefore it is related to human factor. Since human factor
is complex and behavior is unpredictable, direction function
becomes important.
Creative Activity - Direction function helps in converting
plans into performance. Without this function, people become
inactive and physical resources are meaningless.
Executive Function - Direction function is carried out by all
managers and executives at all levels throughout the working
of an enterprise, a subordinate receives instructions from his
superior only.
Delegate Function - Direction is supposed to be a function
dealing with human beings. Human behavior is unpredictable
by nature and conditioning the peoples behavior towards the
goals of the enterprise is what the executive does in this
function. Therefore, it is termed as having delicacy in it to
tackle human behavior.

Theory X and Theory Y

Social psychologist Douglas McGregor of MIT expounded two
contrasting theories on human motivation and management in the
1960s: The X Theory and the Y Theory. McGregor promoted Theory Y
as the basis of good management practice, pioneering the argument
that workers are not merely cogs in the company machinery, as
Theory X-Type organizations seemed to believe.
The theories look at how a manager's perceptions of what motivates
his or her team members affects the way he or she behaves. By
understanding how your assumptions about employees motivation
can influence your management style, you can adapt your approach
appropriately, and so manage people more effectively.
Understanding the Theories
Your management style is strongly influenced by your beliefs and
assumptions about what motivates members of your team: If you
believe that team members dislike work, you will tend towards an

authoritarian style of management; On the other hand, if you

assume that employees take pride in doing a good job, you will tend
to adopt a more participative style.
Theory X
This assumes that employees are naturally unmotivated and dislike
working, and this encourages an authoritarian style of management.
According to this view, management must actively intervene to get
things done. This style of management assumes that workers:
Dislike working.
Avoid responsibility and need to be directed.
Have to be controlled, forced, and threatened to deliver what's
needed.
Need to be supervised at every step, with controls put in place.
Need to be enticed to produce results; otherwise they have no
ambition or incentive to work.
X-Type organizations tend to be top heavy, with managers and
supervisors required at every step to control workers. There is
little delegation of authority and control remains firmly
centralized.
McGregor recognized that X-Type workers are in fact usually the
minority, and yet in mass organizations, such as large-scale
production environment, X Theory management may be required
and can be unavoidable.
Theory Y
This expounds a participative style of management that is decentralized. It assumes that employees are happy to work, are selfmotivated and creative, and enjoy working with greater
responsibility. It assumes that workers:
Take responsibility and are motivated to fulfill the goals they are
given.
Seek and accept responsibility and do not need much direction.
Consider work as a natural part of life and solve work problems
imaginatively.

This more participative management style tends to be more widely

applicable. In Y-Type organizations, people at lower levels of the
organization are involved in decision-making and have more
responsibility.
Comparing Theory X and Theory Y
Motivation
Theory X assumes that people dislike work; they want to avoid it
and do not want to take responsibility. Theory Y assumes that
people are self-motivated, and thrive on responsibility.
Management Style and Control

In a Theory X organization, management is authoritarian, and

centralized control is retained, whilst in Theory Y, the management
style is participative: Management involves employees in decision
making, but retains power to implement decisions.
Work Organization
Theory X employees tend to have specialized and often repetitive
work. In Theory Y, the work tends to be organized around wider
areas of skill or knowledge; Employees are also encouraged to
develop expertise and make suggestions and improvements.
Rewards and Appraisals
Theory X organizations work on a carrot and stick basis, and
performance appraisal is part of the overall mechanisms of control
and remuneration. In Theory Y organizations, appraisal is also
regular and important, but is usually a separate mechanism from
organizational controls. Theory Y organizations also give employees
frequent opportunities for promotion.
Application
Although the Theory X management style is widely accepted as
inferior to others, it has its place in large-scale production operation
and unskilled production line work. Many of the principles of Theory
Y are widely adopted by types of organization that value and
encourage participation. Theory Y-style management is suited to
knowledge work and professional services. Professional service
organizations naturally evolve Theory Y-type practices by the nature
of their work; Even highly structured knowledge work, such as call
center operations, can benefit from its principles to encourage
knowledge sharing and continuous improvement.
THE BLAKE MOUTON MANAGERIAL GRID
A popular framework for thinking about a leaders task versus
person orientation was developed by Robert Blake and Jane Mouton
in the early 1960s. Called the Managerial Grid, or Leadership Grid, it
plots the degree of task-centeredness versus person-centeredness
and identifies five combinations as distinct leadership styles.
Understanding the Model
The Managerial Grid is based on two behavioral dimensions:
Concern for People This is the degree to which a leader
considers the needs of team members, their interests, and
areas of personal development when deciding how best to
accomplish a task.
Concern for Results This is the degree to which a leader
emphasizes concrete objectives, organizational efficiency and
high productivity when deciding how best to accomplish a
task.
Using the axis to plot leadership concerns for results versus
concerns for people, Blake and Mouton defined the following five
leadership styles:

1- Impoverished Management Low Results/Low People

This leader is mostly ineffective. He/she has neither a high regard
for creating systems for getting the job done, nor for creating a work
environment that is satisfying and motivating. The result is
disorganization, dissatisfaction and disharmony.
2- Country Club Management High People/Low Results
This style of leader is most concerned about the needs and feelings
of members of his/her team. These people operate under the
assumption that as long as team members are happy and secure
then they will work hard. What tends to result is a work environment
that is very relaxed and fun but where production suffers due to lack
of direction and control.
3- Authority-Compliance Management High Results/Low
People
Also known as Authoritarian or "Produce or Perish" Leaders, people
in this category believe that employees are simply a means to an
end. Employee needs are always secondary to the need for efficient
and productive workplaces. This type of leader is very autocratic,
has strict work rules, policies, and procedures, and views
punishment as the most effective means to motivate employees.
4- Middle-of-the-Road Management Medium
Results/Medium People
This style seems to be a balance of the two competing concerns,
and it may at first appear to be an ideal compromise. Therein lies
the problem, though: When you compromise, you necessarily give
away a bit of each concern, so that neither production nor people
needs are fully met. Leaders who use this style settle for average
performance and often believe that this is the most anyone can
expect.
5- Team Leadership High Production/High People
According to the Blake Mouton model, this is the best managerial
style. These leaders stress production needs and the needs of the

people equally highly.

The premise here is that employees understand the organization's
purpose and are involved in determining production needs. When
employees are committed to, and have a stake in the organizations
success, their needs and production needs coincide. This creates a
team environment based on trust and respect, which leads to high
satisfaction and motivation and, as a result, high results.
MASLOWS HIERARCHY OF NEEDS THEORY

Maslow's hierarchy of needs theory states that people have a

pyramid hierarchy of needs that they will satisfy from bottom to top.
Starting from mere physiological subsistence the Maslow hierarchy
of needs covers belonging to a social circle to pursuing your talent
through self-actualization. Important to the hierarchy of needs
theory is that Maslow felt that unfulfilled needs lower on the ladder
would inhibit the person from climbing to the next step.
The pyramid of needs is divided into two categories: deficiency
needs (physiological and safety) and growth needs (belonging, selfesteem and self-actualization). If the deficiency needs aren't
satisfied, the person will feel the deficit and this will stifle his or her
development.
Maslow work situations
When Maslow's hierarchy of needs is applied to work situations, it
implies that managers have the responsibility; firstly, to make sure
the deficiency needs are met. This means, in broad terms, a safe
environment and proper wages. Secondly, it implies creating a

proper climate in which employees can develop their fullest

potential. Failure to do so would theoretically increase employee
frustration and could result in poorer performance, lower job
satisfaction, and increased withdrawal from the organization.
For example, according to Maslow's hierarchy of needs theory job
insecurity and the threat of layoffs, will block the person from their
higher growth needs. They might work harder to get security, but
without fulfilling their other needs. If security doesn't return they will
fulfill their needs elsewhere or burn out.
How to satisfy employee's needs
The figure below shows some potential ways of satisfying employee
needs according to Maslow's hierarchy of needs theory. Some of
these are easy and inexpensive to implement, others are hard and
costly. Also, the employees' needs may vary. However, if you
manage to implement at least some of these strategies you will be
looked at as more considerate, supportive and interested in your
people's welfare.

Need

Examples

Physiological

Cafeterias
Vending machines
Drinking fountains

Security

Economic
Wages and salaries
Fringe benefits
Retirement benefits
Medical benefits
Psychological
Provide job descriptions
Avoid abrupt changes
Solve employee's problems
Physical
Working conditions
Heating and ventilation
Rest periods

Belonging

Encourage social interaction

Create team spirit
Facilitate outside social activities
Use periodic praise
Allow participation

Self-esteem

Design challenging jobs

Use praise and awards

Self-actualization

Delegate responsibilities
Give training
Encourage participation

Give training
Provide challenges
Encourage creativity

Implications for financial incentives in Maslow's hierarchy of

needs model
In Maslow's hierarchy of needs model, wages are part of the
deficiency needs. That means that they serve as a measure of
security, and that people will feel unfulfilled in their need for safety
until they have it.
Giving financial bonuses is a different matter. In Maslow's hierarchy
of needs model, these can serve to fulfill the need for esteem.
However, the way they are awarded is also important: if they aren't
given in an atmosphere of praise but as a mere benefit for reaching
a certain goal, they can work counterproductively as they will be
seen as mere wages, and as such only serve to satisfy someone's
deficiency needs, or not at all (if they don't really need the money).

10.

Different types of leadership

A leadership style is a leader's style of providing direction,

implementing plans, and motivating people. There are many
different leadership styles that can be exhibited by leaders in the
political, business or other fields.
Authoritarian
The authoritarian leadership style keep main emphasis on the
distinction of the authoritarian leader and their followers, these
types of leaders make sure to only create a
distinct professional relationship. Direct supervision is what they
believe to be key in maintaining a successful environment and
follower ship.
Authoritarian leadership styles often follow the vision of those that
are in control, and may not necessarily be compatible with those
that are being led. Authoritarian leaders have a focus on efficiency,
as other styles, such as a democratic style, may be seen as a
hindrance on progress.
Examples of authoritarian leadership is the wrong type of

information that can be edited communicative behavior: a police

officer directing traffic, a teacher ordering a student to do his or her
assignment, and a supervisor instructing a subordinate to clean a
workstation.
All of these positions require a distinct set of characteristics that
give the leader the position to get things in order or get a point
across. Authoritarian Traits: sets goals individually, engages
primarily in one-way and downward communication, controls
discussion with followers and dominate interaction.
Several studies have confirmed a relationship between bullying, on
the one hand, and an autocratic leadership and an authoritarian way
of settling conflicts or dealing with disagreements, on the other. An
authoritarian style of leadership may create a climate of fear, where
there is little or no room for dialogue and where complaining may be
considered futile.
Paternalistic
The way a Paternalistic leader works is by acting as a father figure
by taking care of their subordinates as a parent would. In this style
of leadership the leader supplies complete concern for his followers
or workers. In return he receives the complete trust and loyalty of
his people. Workers under this style of leader are expected to
become totally committed to what the leader believes and will not
strive off and work independently. The relationship between these
co-workers and leader are extremely solid. The workers are
expected to stay with a company for a longer period of time
because of the loyalty and trust. Not only do they treat each other
like family inside the work force, but outside too. These workers are
able to go to each other with any problems they have regarding
something because they believe in what they say is going to truly
help them.
One of the downsides to a paternalistic leader is that the leader
could start to play favorites in decisions. This leader would include
the workers more apt to follow and start to exclude the ones who
were less loyal. In todays market paternalism is more difficult to
come by. They believe this because there have become more layoffs and stronger unionization. This affects paternalistic leaders
because the co-workers may not believe that their jobs are 100%
ensured. When this happens, workers begin to look for bigger and
better job opportunities instead of staying at one company for a
longer period of time. Because of this, the leader may be thinking
that you could be leaving and not fully believe you when you tell
them something about a job opportunity. This could put the workers
and leader at risk for a bad situation.
According to B. M. Bass who wrote Leadership and Performance
Beyond Expectations, workers who follow paternalistic leadership
also have better organization skills. The leader encourages
organization because they allow the workers to complete tasks so
that they can stay on top of their work. The workers complete tasks

this boosts self-confidence and it makes them work harder to reach

a goal and exceed the goal to prove to their boss they are working
hard. Having this style of leadership can also help implement a
reward system. This system will allow their workers to work even
better because there is something for them at the end of the tunnel.
While doing this they will also be able to accomplish more work in a
set time frame.
Democratic
The democratic leadership style consists of the leader sharing
the decision-making abilities with group members by promoting the
interests of the group members and by practicing social equality.
The boundaries of democratic participation tend to be circumscribed
by the organization or the group needs and the instrumental value
of people's attributes (skills, attitudes, etc.). The democratic style
encompasses the notion that everyone, by virtue of their human
status, should play a part in the group's decisions. However, the
democratic style of leadership still requires guidance and control by
a specific leader. The democratic style demands the leader to make
decisions on who should be called upon within the group and who is
given the right to participate in, make and vote on decisions. Traits
of a Good Leader compiled by the Santa Clara University and
the Tom Peters Group:
Honest Display sincerity, integrity, and candor in all your
actions. Deceptive behavior will not inspire trust.
Competent Base your actions on reason and moral
principles. Do not make decisions based on childlike emotional
desires or feelings.
Forward-looking Set goals and have a vision of the future.
The vision must be owned throughout the organization.
Effective leaders envision what they want and how to get it.
They habitually pick priorities stemming from their basic
values.
Inspiring Display confidence in all that you do. By showing
endurance in mental, physical, and spiritual stamina, you will
inspire others to reach for new heights. Take charge when
necessary.
Intelligent Read, study, and seek challenging assignments.
Fair-minded Show fair treatment to all people. Prejudice is
the enemy of justice. Display empathy by being sensitive to
the feelings, values, interests, and well being of others.
Broad-minded Seek out diversity.
Courageous Have the perseverance to accomplish a goal,
regardless of the seemingly insurmountable obstacles. Display
a confident calmness when under stress.
Straightforward Use sound judgment to make good
decisions at the right time.
Imaginative Make timely and appropriate changes in your
thinking, plans, and methods. Show creativity by thinking of

new and better goals, ideas, and solutions to problems. Be

innovative!
Research has found that this leadership style is one of the
most effective and creates higher productivity, better
contributions from group members and increased group
morale. Democratic leadership can lead to better ideas and more
creative solutions to problems because group members are
encouraged to share their thoughts and ideas. While democratic
leadership is one of the most effective leadership styles, it does
have some potential downsides. In situations where roles are
unclear or time is of the essence, democratic leadership can lead to
communication failures and uncompleted projects. Democratic
leadership works best in situations where group members are skilled
and eager to share their knowledge. It is also important to have
plenty of time to allow people to contribute, develop a plan and then
vote on the best course of action.
Laissez-faire
The laissez-faire leadership style is where all the rights and
power to make decisions is fully given to the worker. Lewin,
Lippitt, and White first described this in 1938, along with the
autocratic leadership and the democratic leadership styles.
Laissez-faire leaders allow followers to have complete freedom to
make decisions concerning the completion of their work. It allows
followers a self-rule, while at the same time offering guidance and
support when requested. The laissez-faire leader using guided
freedom provides the followers with all materials necessary to
accomplish their goals, but does not directly participate in decision
making unless the followers request their assistance.
This is an effective style to use when:
Followers are highly skilled, experienced, and educated.
Followers have pride in their work and the drive to do it
successfully on their own.
Outside experts, such as staff specialists or consultants are
being used.
Followers are trustworthy and experienced.
This style should NOT be used when:
The leader cannot or will not provide regular feedback to their
followers.
Transactional
Transactional leaders focus their leadership on motivating followers
through a system of rewards and punishments. There are two
factors which form the basis for this system, Contingent Reward and
management-by-exception.

Contingent Reward Provides rewards, materialistic or

psychological, for effort and recognizes good performance.
Management-by-Exception allows the leader to maintain the
status quo. The leader intervenes when subordinates do not
meet acceptable performance levels and initiates corrective
action to improve performance. Management by exception
helps reduce the workload of managers being that they are
only called-in when workers deviate from course.
This type of leader identifies the needs of their followers and gives
rewards to satisfy those needs in exchange of certain level of
performance.
Transactional leaders focus on increasing the efficiency of
established routines and procedures. They are more concerned with
following existing rules than with making changes to the
organization.
A transactional leader establishes and standardizes practices that
will help the organization reach:
Maturity
Goal-setting
Efficiency of operation
Increasing productivity.

Transformational
A transformational leader is a type of person in which the leader is
not limited by his or her followers' perception. The main objective is
to work to change or transform his or her
followers' needs and redirect their thinking. Leaders that follow the
transformation style of leading, challenge and inspire their
followers with a sense of purpose and excitement. They also create
a vision of what they aspire to be, and communicate this idea to
others (their followers). According to Schultz and Schultz, there are
three identified characteristics of a transformational leader:
Charismatic leadership has a broad knowledge of field, has a
self-promoting personality, high/great energy level, and willing
to take risk and use irregular strategies in order to stimulate
their followers to think independently
Individualized consideration
Intellectual stimulation
11.

Total Quality Management.

A core definition of total quality management (TQM) describes a

management approach to longterm success through customer
satisfaction. In a TQM effort, all members of an organization
participate in improving processes, products, services, and the
culture in which they work.
TQM is a management philosophy that seeks to integrate all
organizational functions (marketing, finance, design, engineering,

and production, customer service, etc.) to focus on meeting

customer needs and organizational objectives.
TQM views an organization as a collection of processes. It maintains
that organizations must strive to continuously improve these
processes by incorporating the knowledge and experiences of
workers. The simple objective of TQM is Do the right things, right
the first time, every time. TQM is infinitely variable and adaptable.
Although originally applied to manufacturing operations, and for a
number of years only used in that area, TQM is now becoming
recognized as a generic management tool, just as applicable in
service and public sector organizations. There are a number of
evolutionary strands, with different sectors creating their own
versions from the common ancestor.
The Primary Elements of TQM
Total quality management can be summarized as a management
system for a customer-focused organization that involves all
employees in continual improvement. It uses strategy, data, and
effective communications to integrate the quality discipline into the
culture and activities of the organization.
I.

Customer-focused. The customer ultimately determines the

level of quality. No matter what an organization does to foster
quality improvementtraining employees, integrating quality
into the design process, upgrading computers or software, or
buying new measuring toolsthe customer determines
whether the efforts were worthwhile.

II.

Total employee involvement. All employees participate in

working toward common goals. Total employee commitment
can only be obtained after fear has been driven from the
workplace, when empowerment has occurred, and
management has provided the proper environment. Highperformance work systems integrate continuous improvement
efforts with normal business operations. Self-managed work
teams are one form of empowerment.

III.

Process-centered. A fundamental part of TQM is a focus on

process thinking. A process is a series of steps that take inputs
from suppliers (internal or external) and transforms them into
outputs that are delivered to customers (again, either internal
or external). The steps required to carry out the process are
defined, and performance measures are continuously
monitored in order to detect unexpected variation.

IV.

Integrated system. Although an organization may consist of

many different functional specialties often organized into
vertically structured departments, it is the horizontal

processes interconnecting these functions that are the focus

of TQM.
a. Micro-processes add up to larger processes, and all
processes aggregate into the business processes
required for defining and implementing strategy.
Everyone must understand the vision, mission, and
guiding principles as well as the quality policies,
objectives, and critical processes of the organization.
Business performance must be monitored and
communicated continuously.
b. An integrated business system may be modeled after
the Baldrige National Quality Program criteria and/or
incorporate the ISO 9000 standards. Every organization
has a unique work culture, and it is virtually impossible
to achieve excellence in its products and services unless
a good quality culture has been fostered. Thus, an
integrated system connects business improvement
elements in an attempt to continually improve and
exceed the expectations of customers, employees, and
other stakeholders.
V.

Strategic and systematic approach. A critical part of the

management of quality is the strategic and systematic
approach to achieving an organizations vision, mission, and
goals. This process, called strategic planning or strategic
management, includes the formulation of a strategic plan that
integrates quality as a core component.

VI.

Continual improvement. A major thrust of TQM is continual

process improvement. Continual improvement drives an
organization to be both analytical and creative in finding ways
to become more competitive and more effective at meeting
stakeholder expectations.

VII.

Fact-based decision making. In order to know how well an

organization is performing, data on performance measures are
necessary. TQM requires that an organization continually
collect and analyze data in order to improve decision making
accuracy, achieve consensus, and allow prediction based on
past history.

VIII.

Communications. During times of organizational change, as

well as part of day-to-day operation, effective communications
plays a large part in maintaining morale and in motivating
employees at all levels. Communications involve strategies,
method, and timeliness.

These elements are considered so essential to TQM that many

organizations define them, in some format, as a set of core values
and principles on which the organization is to operate.