1. What is Management?

Management is the process of giving direction and controlling the various activities of the people
to achieve the objectives of an organization.

2. List the scope of management?

Functional areas of management
Principles of management
The essentials of management
Management is an agent of change
3. Define Management.

According to Knootz and Weihrich "Management is the process of designing and maintaining
of an organisation in which individuals working together in groups efficiently accomplish selected
aims".

4. Who is the father of scientific management? What is scientific management?

Frederick Winslow Taylor (March 20, 1856 March 21, 1915) was the father of scientific
management.An American mechanical engineer who sought to improve industrial efficiency. He was
one of the first management consultants. Taylor was one of the intellectual leaders of the Efficiency
Movement and his ideas, broadly conceived, were highly influential in the Progressive Era (1890s-
1920s). Taylor summed up his efficiency techniques in his 1911 book The Principles of Scientific
Management.

Scientific management is defined as the use of the scientific method to define the one best
way for a job to be done. The scientific management theory developed due to the need to increase
productivity and efficiency.

5. What are management levels?

Top level management
Middle level management
Lower level management
6. Write some important functions of top level management.
To formulate goals and policies of the company.
To formulate budgets
To appoint top executives.
7. Write any two functions of middle level management.
To train, motivate and develop supervisory level
To monitor and control the operations performance.
8. List the functions of Management? (A/M-2015 & May/June-2016)
Planning
Organising
Directing
Staffing/Coordinating
Controlling
9. List the characteristics of Modern Management thought.
Management is a continuous process
Managers use the resources of the organisation both physical as well as human to achieve the
goals.
 Management aims at achieving the organization goals by ensuring the effective use of
resources.
10. Write some characteristics of Management.
Management is a continuous process
Managers use the resources of the organisation both physical as well as human to achieve the
goals.
Management aims at achieving the organization goals by ensuring the effective use of
resources.
11. What are the roles of management in organisation?
Management helps in determining the objectives of an organisation
Economic and social development takes place through management.

SCIENCE OR ART

12. Management is science as well as an art-justify

Management is science because,
Management principles are verifiable
It has reliable basis for predicting future
Management is an art because,
Management is creative
Management includes the use of practical knowledge and personal skill.

MANAGER Vs ENTERPRENEUR

13. Give the difference between manager and entrepreneur?

TYPES OF MANAGERS

14. Give the types of manager?

There are seven types of manager as follows,

a. The Problem-Solving Manager

b. The Pitchfork Manager
c. The Pontificating Manager
d. The Presumptuous Manager
 e. The Perfect Manager
f. The Passive Manager
g. The Proactive Manager

MANAGERIAL ROLES AND SKILLS

15. What are the functions of a manager?

Interpersonal roles:
Figure head role
Leader role
Liaison role
Informational roles:
Monitor role
Disseminator role
Spokesperson role
Decision roles:
Entrepreneur role
Disturbance handler role
Resource allocator role
Negotiator role
16. What are the essential skills needed for the managers?

Managers need certain skills to perform the challenging duties and activities associated with
being a manager. Robert L. Katz found through his research in the early 1970s that managers need
three essential skills

a. Technical skills are job-specific knowledge and techniques needed to proficiently perform
specific tasks.
b. Human skills are the ability to work well with other people individually and in a group.
c. Conceptual skills are the ability to think and to conceptualize about abstract and complex
situations.

16. Define authority and responsibility and social responsibility?

Authority is the power given to a person to get work from his subordinates.
Responsibility is the amount of work expected of from a man by his superior.
Society is the part of management to interact actions with or to protect social interest a society.
17. Define Administration.

According to E.F.L Breech "Administration is that part of management which is concerned with
the installation and carrying out of the procedures by which the programme is laid down and
communicated and the progress of activities is resulted and checked against plans. This Breech
concerns administration as a part of management".

18. Distinguish between Management and Administration.

Management Administration

It is lower level function It is higher level function

It refers to the employees It refers to the owners of organization.
 Management is the concerned with Administration is concerned with
execution of decision. decision making.
It acts through the organization It acts through the management

Management executes the policies laid Administration lays down broad policies
by administration into practice. and principles of guidance.

19. What are the roles a manager has to perform?

a. Interpersonal roles:
Figure head role
Leader role
Liaison role
b. Informational roles:
Monitor role
Disseminator role
Spokesperson role
c. Decision roles:
Entrepreneur role
Disturbance handler role
Resource allocator role
Negotiator role
20. What are the functions performed by a low level managers?
To train and develop the efficiency of the workers
To assign job to workers
To give orders and instructions
To report feedback information about workers.
21. What are the factors impacts on managerial work in modern Industries?
Environmental Changes
Diversity
Globalisation
Quality

EVOLUTION OF MANAGEMENT-Scientific, human relations, system and contingency approaches

22. What does Hawthorne experiment consist?

Illumination experiment
Relay assembly test room experiment
Bank wiring test room experiment
Mass interview program
23. Give short note on contingency theory towards management?

It tells that the characteristics of environment affect an organizations ability to obtain

resources. For example, some management concepts are more effective in one situation. The same
management concept may fail in another situation. Results of solutions differ because situations
differ.

24. What are the stages in evolution of management thought?

Pre-scientific or pre-classical management period
 Classical management theory
Scientific management of Taylor
Administrative management of Fayol
Bureaucratic model of Max Weber
Neo-classical theory or behavioural theory
Modern theory
System approach
Contingency approach
25. What is system approach to management?

The system approach views, the organization as a unified, purposeful system composed of
interrelated parts. This way the manager can look at the organisation as a whole or a part of the
larger outside environment. Activity of any part affects all other parts of the organisation. A System
can be biological, physical or social.

26. Mention the characteristics of a bureaucratic system.

Well-defined hierarchy
Division of labour and specialization
System of written rules and regulations
Impersonal relationships between managers and employees
Selection and evaluation system
Records
27. What are the five specific areas in needs of hierarchy based on Maslow's theory?
Physiological needs
Safety needs
Belonging and love needs
Esteem needs
Self-actualization needs
28. List down the terminologies in understanding systems approach.
Closed system
Open system
Entropy
Synergy
29. What is time study and motion study?
Time study states that the movements which take a minimum time are the best one.
Motion study states that eliminating wasteful movements and performing only necessary
movements.

TYPES OF BUSINESS ORGANIZATION-Sole proprietorship, partnership, company-public and

private sector enterprises

30. Give the types of business organization?

Sole proprietorship
Partnership
Joint stock company
Co-operative
31. Define "Joint sector unit".
 Joint Stock Company/Unit is association of many persons who contribute money worth to
common stock and explain source trade and also share the profit and losses

32. What is sole trading?

The sole proprietorship is the form of business organization which is owned and controlled by
a single individual.

33. What is partnership?

A partnership is an association of two or more persons to carry on business and to share its
profit and losses.

34. What is private and public limited company?

A private limited company is a company which has a minimum paid up capital.
A public company is a company which has a maximum paid up capital.
35. What is a co-operative society?

It is a voluntary association of persons for mutual benefit and it aims to accomplish through
collective effort.

ORGANIZATION CULTURE AND ENVIRONMENT

36. List down the internal environment factors considered in the organization?
Technology
Economic conditions
Political factors
Socio cultural factors
37. What are the sources of culture?
Rituals
Material symbols
Language
Stories
38. List out the organizational culture?
Subculture
Dominant culture
Strong culture
Weak culture
National culture
Participative culture
Authoritarian culture

CURRENT TRENDS AND ISSUES IN MANAGEMENT

39. What are the challenges of management?

Changing employee expectations
Building organizational capabilities
Job design and organizational structure
Changing psychosocial system
Technological charges
Changes in legal environment
40. What is Globalization?
 All these policies measured clearly reflect the changing attitude of Government towards
business and the commitment of Government to Integrate Indian Economy with the world's economy
is called Globalization.

41. What is Multinational Corporation (MNC)?

"An enterprise which own or control production or service facilities outside the country in
which they are based.

42. What are the characteristics of MNC?

The MNC top manager regards the entire world as the relevant frame of reference for making
the kinds of resource acquisition, production and market identified.
MNC is reduction of unit costs through producing more units.
43. How does effectiveness differ from efficiency?

Efficiency:

Efficiency means doing things right. It defines the ability to minimize the use of resources in
achieving organizational objectives.

Effectiveness:

Effectiveness means "Doing the right thing". The ability is to determine appropriate objectives.

44. Mention the effects of globalization.

Industrial sector
Financial sector
Economic effects
Information technology
Competition
Cultural
Technical sector
Legal/Ethical sector
45. Give the current trends in management

i) Workforce diversity ii) Technology iii) Globalisation iv) Management of human relations v)
Job design & organizational structure vi) Changing psycho-social system.

46. Mention the advantages and disadvantages of MNC?

Advantages:

MNC leads to increase in production exports and imports of the required inputs.
MNC can promote quality products at low cost.

Disadvantages:

Competition from MNC affects local industry

MNC discourages competition among their subsidiaries.

PART-B

1. Briefly explain about the nature and scope of management.

 NATURE OF MANAGEMENT

An analysis of the various definitions and contributions to the field of management by

eminent philosophers and authors indicates that the management has certain nature/characteristics.

The following are the salient characteristics of management:

Management is multidisciplinary in nature

Management is an interdisciplinary study. It draws ideas and concepts from various

disciplines, such as economics, statistics, mathematics, psychology, sociology, anthropology etc.

Management is a continuous process

Management is a process, function or activity. This process continues till the objectives set by
administration are actually achieved.

Management is a universal activity

Management is not applicable to business undertakings only. It is applicable to political, social,

religious and educational institutions also. Management is necessary when group effort is required.

Management is a Science as well as an Art

Management is an art because there are definite principles of management. It is also a science
because by the application of these principles predetermined objectives can be achieved.

Management is dynamic and not static

The principles of management are dynamic and not static. It has to adapt itself according to
social changes.

Management is a Profession

Management is gradually becoming a profession because there are established principles of

management which are being applied in practice, and it involves specialized training and is governed
by ethical code arising out of its social obligations.

Management is a group activity

Management comes into existence only when there is a group activity towards a common
objective. Management is always concerned with group efforts and not individual efforts. To achieve
the goals of an organisation management plans, organises, co-ordinates, directs and controls the
group effort.

Management aims at obtaining wealthy results

Manager's primary job is to assure the productive performance through planning, direction
and control. It is expected of the management to bring into being the desired results. Rational
utilization of available resources to maximize the profit is the economic function of a manager.

Management implies skill and experience in getting things done through people

Management involves doing the job through people. The economic function of earning
profitable return cannot be performed without enlisting co-operation and securing positive response
from "people".
 Management is a system of authority

Authority means power to make others act in a predetermined manner. Management

formalises a standard set of rules and procedure to be followed by the subordinates and ensures their
compliance with the rules and regulations.

Management is intangible

It cannot be seen with the eyes. It is evidenced only by the quality of the organisation and the
results i.e., profits, increased productivity etc.

Management implies good leadership

A manager must have the ability to lead and get the desired course of action from the
subordinates. Management of the high order implies the capacity of managers to influence the
behaviour of their subordinates.

SCOPE OF MANAGEMENT

It is difficult to precisely state the scope of management. However, the management includes the
following scopes:

Functional areas of management:

Financial Management includes forecasting, cost control, management accounting, budgetary

control, statistical control, financial planning etc.

Human Resource Management covers the various aspects relating to the employees of the
organisation such as recruitment, training, transfers, promotions, retirement, terminations,
remuneration, labour welfare and social security, industrial relations etc.

Marketing Management deals with marketing of goods, sales promotion, advertisement and
publicity, channels of distribution, market research etc.

Production Management includes production planning, quality control and inspection,

production techniques etc.

Material Management includes purchase of materials, issue of materials, storage of materials,

maintenance of records, materials control etc.

Purchasing management includes inviting tenders for raw materials, placing orders, entering
into contracts etc.

Maintenance management relates to the proper care and maintenance of the buildings, plant
and machinery etc.

Office management is concerned with office layout, office staffing and equipment of the office.

Subject-matter of management:

Management is considered as a continuing activity made up of basic management functions,

such as planning, organizing, staffing, directing and controlling. These components form the subject-
matter of management.

Management is an inter-disciplinary approach:

 Though management is regarded as a separate discipline, for the correct application of the
management principles, study of commerce, economics, sociology, psychology, and mathematics are
very essential. The science of management draws ideas and concepts from a number of disciplines
making it a multi disciplinary subject.

Principles of management:

The principles of management are of universal application. These principies are applicable to
any group activity undertaken for the achievement of some common goals.

Management is an agent of change:

The techniques of management can be improved by a proper research and development.

The essentials of management:

The essentials of management include scientific method, human relations and quantitative
techniques.

IMPORTANCE OF MANAGEMENT

Importances of management are given as follows:

a) Attainment of group goals

The achievement of objectives of business depends upon various factors. The management
theory gives the direction of achievement of goals.

b) Effective functioning of business

Ability, understanding, communication, motivation, coordination and supervision are some of

the factors responsible for the effective functioning of business. Management is a vital to help for
effective functioning of business.

c) Resource development

The resources of any enterprise may be identified and developed by the management.
Generally, the term resources are men, money, material and machines.

d) Management controls the organization

The management controls the activities of enterprises. A control process is used to eliminate
the unnecessary activities.

e) Sound organization structure

Sound organizations structure clearly defines the authority and responsibility of relationship.
It helps to take corrective action wherever and whenever necessary.

f) Integrates individual efforts

Management takes necessary steps to integrate various efforts to achieve the objectives of an
organization.

g) Motivation
 Motivation is a vital tool to achieve organisation goal. A proper motivating the workers
increase the speed of performance of a work. Motivation is in the form of monetary or non-monetary
incentive.

h) Communication

Communication is an important role for effective management. Effective communication leads

to efficient management.

i) Coordination

All the activities of enterprises are department-wise. Management coordinates the activities of
different departments to attain the objectives of the organization.

j) Decision-making

There are a few numbers of decisions taken by the management every day. The management
guides the managers to take correct decisions.

k) Leadership quality

Leadership quality is developed in the persons who are working in the top level management.

l) Management is needed at all levels

The functions of management are common to all levels of organizations. The management is
more essential for top management, middle management and lower management

2. Write notes on functions of management / Manager.

The following are five basic functions of management:

a) Planning
b) Organising
c) Staffing
d) Directing
e) Controlling

Planning
Planning, in simple, is looking ahead' It is the process of preparing for the future. Effective
planning leads to efficient management. Effective planning provides answers to questions such as
-What to do? When to do? How to do? Who is to do?

The planning process involves the following activities:

a) Determination of the goal of the organization

b) Formulating policies, rules, procedures etc. for the organization
c) Forecasting the future based on past and present activities

Organising
Organising establishes harmonious relationship among all workers of an organisation by
providing them with suitable authority and responsibility.
 According to Louis A. Allen - "Organisation involves identification and grouping the
activities to be performed and dividing them among the individuals and creating authority and
responsibility relationships among them for the accomplishment of organisational objectives".

Organisation process involves the following activities:

a) Identification and analysis of activities required for the attainment organisational

objectives
b) Assignment of duties to the individuals concerned
c) Assignment of duties to the individuals concerned

Staffing
Staffing process involves selecting candidates for positions, fixing salary, training and
developing them for effective organisational functions. The manager performs the duties of job
analysis, job description etc. which come under the staffing function.

Directing / Leading
Directing involves activities, such as guiding, supervising, communicating and motivating
the subordinates in their jobs. Motivation, leadership and communication are three important sub
functions of directing. Motivation helps to increase the performance of workers. Communication
provides with proper information to the subordinates for the improved and effective management
Leadership is the process by which a manager guides and influences the work of his subordinates.

Controlling

Controlling deals the checking and verifying the activities against the predetermined
standards. It is the process of ensuring that the actual activities confirm to the planned activities.

Controlling process involves the following steps:

a) Establishing standards.
b) Measuring current performance.
c) Comparing this performance to the established standards.
d) Taking corrective actions of deviation are detected

3. Is Management a Science or Art. Discuss.

What is science?

The following characteristics are essential for the subject to be recognized as a science.

a) The existence of a systematic body of knowledge with array of principles

b) Based on scientific enquiry
c) Principle should be verifiable
d) Reliable basis for predicting future events
Management as a discipline fulfils the science criterion. The application of these principles
helps any predicting manager to achieve the desired goals. Management is a dynamic subject in
that it has heavily from economics, psychology, sociology, mathematics and engineering.
Management is multidisciplinary in nature.

Science classified into two types. They are exact science and inexact science. In exact
science, the results are accurate. In the case of management, it is an inexact science because:
 a) Every organisation human resources are different attitudes, aspirations and perceptions.
So, standard results may not be obtained.
b) Readymade and standard solutions cannot be obtained.
c) Management is complex and unpredictable.
d) Every organisation decisions are influenced by the environment. The environment is so
complex and unexpected changes.

What is an art?

Art means application of skill in finding a desired result. Art is the way of doing things
skilfully. Management is an art because of the following facts.

a) Management process involves the use of practical knowledge and personal skill.
b) Management is creative
c) Application of practical knowledge and certain skills helps to achieve concrete results.

Management is both-science and an art

Management is a science because it contains certain principles. It is also an art

because it requires certain personal skills to achieve desired results.

4. Write short notes on management levels and importance of management?

Management levels

The three levels of management commonly found in any organization are top, middle and
lower management.

(a) Top level management

Top level management is at the very first top levels of the hierarchy who have the most
authority and who are ultimately responsible for the entire organization. These individuals
typically have titles, such as executive vice president, president, managing director, chief
operating officer, chief executive officer or chairman of the board.

The main functions of top management are:

a) To formulate goals and policies of the company

b) To formulate budgets
c) To appoint top executives
d) To provide overall direction and leadership of the company
e) To decide the distribution of profits etc.

(b) Middle level management

Middle-level managers are those managers beneath the top levels of the hierarchy and
directly supervise other managers below them. These managers manage the work of first-line
managers and may have titles, such as department head, project leader, plant managers, or
division manager. The important functions of middle level management are:

a) To monitor and control the operating performance of the sub-units and individual
managers who report to them
b) To implement overall organizational plans so that organizational goals are achieved as
expected
 c) To train, motivate and develop supervisory level
d) Implement changes or strategies generated by top managers
e) To co-ordinate among themselves so as to integrate the various activities of a department.

(c) Lower level or Supervisory management

Low-level managers or first-line supervisors are those managers having the least authority
and are at the lowest level in the hierarchy of the organization. They are directly responsible for
the work of operating employees. The main functions of Lower level management are:

a) To train and develop the efficiency of the workers

b) To assign jobs to workers
c) To give orders and instructions
d) To maintain discipline and good human relations among workers
e) To report feedback information about workers.

Types of managers

1. The Problem-Solving Manager

This boss is task-driven and focused on achieving goals. These problem solvers are
constantly putting out fires and leading by chaos. The paradox here is this: It is often the manager
who creates the very problems and situations that they work so hard to avoid. Continually
providing solutions often results in the lackluster performance that they are working so diligently
to eliminate.

2. The Pitchfork Manager

People who manage by a pitchfork are doing so with a heavy and often controlling hand:
demanding progress, forcing accountability, prodding and pushing for results through the use of
threats and fear tactics. This style of tough, ruthless management is painful for people who are put
in a position where they are pushed to avoid consequences rather than pulled toward a desired
goal.

3. The Pontificating Manager

These managers will readily admit they dont follow any particular type of management
strategy. Instead, they shoot from the hip, making it up as they go along, often generating
sporadic, inconsistent results. As a result, they often find themselves in situations that they are
unprepared for. Interestingly, the Pontificating Manager thrives on situations like this. Often
adrenaline junkies themselves, these managers are in desperate need of developing the second
most essential proficiency of a coach: masterful listening. The Pontificating Manager is the type of
manager who can talk to anyone and immediately make people feel comfortable. This character
strength becomes a crutch to their leadership style, often blinding them to the need to further
systemize their approach. As a matter of fact, the only thing consistent about these managers is
their inconsistency.

4. The Presumptuous Manager

Presumptuous Managers focus more on themselves than anything else. To them, their
personal production, recognition, sales quotas, and bonuses take precedence over their people
and the value they are responsible for building within each person on their team. Presumptuous
Managers often put their personal needs and objectives above the needs of their team. As you can
imagine, Presumptuous Managers experience more attrition, turnover, and problems relating to
managing a team than any other type of manager. Presumptuous Managers are typically assertive
and confident individuals. However, they are typically driven by their ego to look good and
outperform the rest of the team. Presumptuous Managers breed unhealthy competition rather
than an environment of collaboration.

5. The Perfect Manager

Perfect Managers possess some wonderful qualities. These managers are open to change,
innovation, and personal growth with the underlying commitment to continually improve and
evolve as sales managers, almost to a fault. This wonderful trait often becomes their weakness. In
their search for the latest and greatest approach, like Pontificating Managers, Perfect Managers
never get to experience the benefit of consistency. This manager is a talking spec sheet. Their
emphasis on acquiring more facts, figures, features, and benefits has overshadowed the ability of
Perfect Managers to recognize the critical need for soft skills training around the areas of
presenting, listening, questioning, prospecting, and the importance of following an organized,
strategic selling system. Perfect Managers rely on their vast amount of product knowledge and
experience when managing and developing their salespeople. Because of this great imbalance,
these manager often fall short on developing their interpersonal skills that would make them
more human than machine.

6. The Passive Manager

Also referred to as Parenting Managers or Pleasing Managers, Passive Managers take the
concept of developing close relationships with their team and coworkers to a new level. These
managers have one ultimate goal: to make people happy. While this is certainly an admirable trait,
it can quickly become a barrier to leadership efforts if not managed effectively. Although
wholesome and charming, this type of boss is viewed as incompetent, inconsistent, and clueless,
often lacking the respect they need from their employees in order to effectively build a
championship team. You can spot a Passive Manager by looking at their team and the number of
people who should have been fired long ago. Because all Passive Managers want to do is please,
they are more timid and passive in their approach. These managers will do anything to avoid
confrontation and mistake holding people accountable with confrontation and conflict.

7. The Proactive Manager

The Proactive Manager encompasses all of the good qualities that the other types of
managers possess, yet without all of their pitfalls. Here are the characteristics that this ideal
manager embodies, as well as the ones for you to be mindful of and develop yourself. The
Proactive Manager possesses the

a) Persistence, edge, and genuine authenticity of the Pitchfork Manager

b) Confidence of the Presumptuous Manager
c) Enthusiasm, passion, charm, and presence of the Pontificating Manager
d) Drive to support others and spearhead solutions like the Problem-Solving Manager
e) Desire to serve, respectfulness, sensitivity, nurturing ability, and humanity of the Passive
Manager
f) Product and industry knowledge, sales acumen, efficiency, focus, organization, and passion
for continued growth just like the Perfect Manager
 The Proactive Manager is the ultimate manager and coach, and a testimonial to the
additional skills and coaching competencies that every manager needs to develop in order to build
a world-class team.

5. Write about the role of managers and managerial skills in detail?

Henry Mintzberg described the different types of managerial roles. A role is a set of specific
tasks a person performs because of the position he hold.

Mintzberg identified ten roles and he believes that all managers play roles at various times
to varying degrees. He classified the roles into three categories: (A) Interpersonal roles, (B)
Informational roles, (C) Decision roles.

(A) Interpersonal Roles

Interpersonal roles are the roles which managers assume to coordinate and interact with
employees and provide direction to the organisation.

1. Figurehead role

Manager symbolizes the organisation. His duties include greeting visitors, giving a lecture
in social functions, taking important customers to lunch etc.

2. Leader role:

Manager trains and directs the subordinates to achieve the goals of the organisation.
Manager is responsible for motivating and activating the employees. Subordinates follow the
directions and guidelines given by the leader.

3. Liaison role:

Managers link and coordinate people inside and outside the organisati on. Managers must
have outside contacts in order to assess the external environment such as changes in technology,
government regulations etc.

(B) Informational Roles

Informational roles are associated with the tasks needed to collect and transmit
information to the management of the organisation.

1. Monitor role:

Manager collects information from the internal and external environment. The information
can collected through reports, periodicals or through personal contacts.

2. Disseminator role:

Manager transmits information to make changes in the attitude and behaviour of

employees. The information can be transmitted through memos, phone calls, displays, group or
individual meetings.

3. Spokesperson role:
 Manager transmits information to outsiders and acts as a spokesperson for his unit and
represents his unit. The information that can be transmitted to the outsiders includes plans,
policies, actions, results, etc.

(C) Decision Roles

Decision role is associated with the methods that managers use to plan strategy and utilize
resources to achieve goals.

1. Entrepreneur role:

Manager decides upon new projects or programs to initiate and invest. He searches the
organisation and its environment for changes and opportunities.

2. Disturbance handler role:

Manager assumes responsibility for handling an unexpected event or crisis. Manager tries
to solve all the problems and take corrective actions.

3. Resource allocator role:

Manager assigns human and material resources between functions and departments. He
assigns budgets for lower level managers. Manager allocates funds for purchasing new
equipments and machines.

4. Negotiator role:

Manager seek to negotiate solutions between other managers, unions, customers or

shareholders. Manager deals with different people and groups at major negotiations.

Managerial Skills

For analysis, skills required of any manager are classified under three different heads:
technical, human and conceptual skills.

1. Technical Skill

Technical skills are skills that reflect both an understanding of a proficiency in a

specialized field, such as engineering, computers, accounting, or manufacturing. These skills are
more important at lower levels of management since these managers are dealing directly with
employees doing the organizations work.

2. Human Skill

Human skill refers to the ability of the manager to work effectively as a group member and
to build cooperative effort in the team he leads. Human skills are concerned with understanding of
'people'. Managers with good human skills are able to get the best out of their people. They know
how to communicate, motivate, lead, and inspire enthusiasm and trust.

3. Conceptual Skills

This skill also called design and problem solving skill. It involves the ability:

a) To see the organization and the various components of it as a whole

 b) To understand how its various parts and functions mesh together
c) To foresee how changes in any one of them may affect all the others.

A higher degree of conceptual skill helps in analyzing the environment and identifying the
opportunities.

6. Explain briefly about the evolution of management thought.

EVOLUTION OF MANAGEMENT THOUGHT:

The origin of management can be traced back to the days when man started living in
groups. History reveals that strong men organised the masses into groups according to their
intelligence, physical and mental capabilities. There are many examples from past history that
illustrates how management has been practiced for thousands of years. Evidence for the use of
well recognized principles of management is to be found in the organisation of public life in
ancient Greece, the organisation of Roman catholic church and the organisation of military forces.
Thus, the management in some form or the other has been practiced in the various parts of the
world since the drawn of civilization exists.

Most of the evolutionary changes and new perspectives occurred as a result of the
Industrial Revolution that transformed agricultural societies into industrial societies. The
structure of industry became extremely complex. At this stage, the development of a formal theory
of management became absolutely necessary. It was against this background that the pioneers of
modern management thought laid the foundations of modern management theory and practice.

Evolution of management thought is divided into following four stages:

1) Pre-scientific or Pre-classical management period

2) Classical Management Theory
(a) Scientific management of Taylor
(b) Administrative Management of Fayol
(c) Bureaucratic Model of Max Weber
3) Neo-classical Theory or Behavioural Theory
4) Modern Theory
(a) Systems approach
(b) Contingency approach

PRE-SCIENTIFIC OR PRE-CLASSICAL MANAGEMENT PERIOD:

The advent of industrial revolution in the middle of the 18 century had its impact on
management. During the period following the industrial revolution, certain pioneers tried to
challenge the traditional character of management by introducing new ideas and approaches. The
notable contributors of this period are:

Robert Owen (1771-1858)

He was an owner of a group of textile mills in Lanark, Scotland, where he used his ideas of
human relations. He is the promoter of co-operative and trade union movement in England. He
emphasized the recognition of human element in industry. He firmly believed that workers
performance in industry was influenced by the working conditions and treatment of workers. He
introduced new ideas of human relations, such as shorter working hours, housing facilities,
training of workers in hygiene, education of their children, provision of canteen etc. Though his
approach was very strict, he came to be regarded as the father of personnel management.

Charles Babbage (1792-1871)

He is considered to be the "father of modern computing." He was a Professor of

Mathematics at Cambridge University. He found that manufacturers made a little use of science
and mathematics, and that they relied upon opinions instead of investigations and accurate
Knowledge. He felt that the methods of science and mathematics could be applied to the solution
of methods in the place of guess work for the solution of business problems. He advocated the use
of accurate observations, measurement and precise knowledge for taking business decisions. His
management ideas also anticipated the concept of profit sharing to improve the productivity.

Henry Robinson Towne (1844-1924)

He was the president of the famous lock manufacturing company "Yale and Town. He
advised the combination of engineers and economists as industrial managers. This combination of
qualities, together with at least some skill as an accountant, is essential to the successful
management of industrial workers.

Pre-classical contributors were, no doubt, pioneers of management thought. But, the

impact of their contributions on the industry as a whole was insufficient. However, they laid the
groundwork for major management theories which raised later. The real beginning of the science
of management did not occur until the last decade of the 19th century.

CLASSICAL MANAGEMENT THEORY

The classical management theory developed during the industrial Revolution when new
problems related to the factory system started to appear. Managers were unsure of how to train
employees or deal with increased labour dissatisfaction, so they began to test solutions. As a
result, the classical management theory developed from efforts to find the "one best way" to
perform and manage tasks. A classical management theory is made up of three parts:

Scientific management theory

Administrative management theory
Bureaucratic management theory

Scientific Management Theory:

Scientific management is defined as the use of the scientific method to define theone best
way for a job to be done. The scientific management theory developed due to the need to increase
productivity and efficiency. The emphasis was trying to find the best way to get the most work
done:

By examining how the work process was actually accomplished, and

By scrutinizing the skills of the workforce.

The major contributors of this scientific management theory are:

F.W.Taylor's Scientific Management:

Fredrick Winslow Taylor joined as a labour at Midvale Steel Company in U.S.A in 1878. He
became chief engineer in the year 1884 in the same company and later on served with the
Bethlehem Steel Works. He published journal papers on "Price rate system" and "Shop
management". He published a book on "Principles of scientific management" in 1911. Taylor
attempted a more scientific approach to management as well as the problems and the approach
was based upon four basic principles:

1. Study each part of the task scientifically, and develop the best method to perform it.

2. Carefully select workers and train them to perform a task using the scientifically developed
method.

3. Cooperate fully with workers to ensure they use the proper method.

4. Divide work and responsibility. So, management is responsible for planning work methods
using scientific principles and workers are responsible for executing the work accordingly.

A mental revolution in the form of constant cooperation between the employer and
employees should be given the benefits of scientific management.

Elements of Scientific Management:

Taylor conducted various experiments at the work place to find out how human beings
could be made more efficient by standardizing the work. The following are the elements or
features of Taylor's scientific management.

1. Planning the Task:

Taylor suggests the separation of planning from actual doing.
Taylor says that supervisor should do the planning.
The workers only concentrate on doing the work.

2. Scientific Task and Rate-setting (work study):

Work study may be defined as the systematic, objective and critical examination of all
factors governing the efficiency of any specified activity in order to obtain effect improvement.
This can be determined by method, motion, time and fatigue studies.

(a) Method study:

The management should try to ensure that the plant is laid out in the best manner and is
equipped with the best tools and machinery. The possibilities of eliminating or combining certain
operations may be studied.
(b) Motion study:
It is a study of the movement, of an operator (or even of a machine) in performing an
operation with the purpose of eliminating useless motions.
(c) Time study:
This study determines the proper time for performing the operations. The movement,
which takes minimum time, is the best one. This helps in firms the fair work for a period.
(d) Fatigue study:
Employees get both physical as well as mental fatigue easily. Fatigue study indicates the
amount and frequency of rest required in completing the job. Taylor suggests a fair day's work
requiring certain movements and rest periods to complete it.
(e) Rate-setting:

Taylor recommended the differential piece wage system, under which workers performing
the standard task within prescribed time are paid much higher rate per unit than inefficient
workers who are not able to come up to the standard set.

3. Scientific selection and training

 Taylor has suggested that workers should be selected scientifically by a central personnel
department. The procedure of selection will also have to be systematized.
A worker should be physically and technically most suitable for the selected post.
After selection workers should be given a proper training which makes them more efficient
and effective.

4. Standardisation

Standards must be maintained in respect of the equipments and tools, materials, period of
work, amount of work, working conditions, cost of production etc. Normally, these standards will
be fixed in advance on the basis of various experiments.

5. Specialisation

Taylor developed a theory called functional foremanship based on specialization of

function. Under this plan, the two functions of planning and 'doing' are separated in the
organization of the plant. The 'functional foremen' are specialists who join their heads to give
thought to the planning of the performance of operations in the workshop. In this system eight
functional foreman were involved to direct and control the activities of the workers.
(i) Route Clerk:

To lay down the sequence of operations and instruct the workers concerned about it.

(ii) Instruction Card Clerk:

To prepare detailed instructions regarding different aspects of work.

(iii) Time and Cost Clerk:

To send all information relating to their pay to the workers and to secure proper returns of
work from them.

(iv) Shop Disciplinarian:

To deal with cases of breach of discipline and absenteeism.

(v) Gang Boss:

To assemble and set up tools and machines and to teach the workers to make all their
personal motions in the quickest and best way.

(vi) Speed Boss:

To ensure that machines are run at their best speeds and proper tools are used by the
workers.

(vii) Repair Boss:

To ensure that each worker keeps his machine in good order and maintains cleanliness
around him and his machines.

(viii) Inspector:

To show to the worker how to do the work.

6. Financial incentives
 Financial incentives can motivate the workers to put up their maximum efforts.
Taylor has suggested that wages should be based on individual performance and not on the
position which he occupies.
According to this scheme, a worker who completes the normal work gets wages at higher rate
and who does not complete gets at lower rate.

7. Economy

Scientific management enhances profit and economy.

The economy and profit can be achieved by making the resources more productive as well as
by eliminating the wastages.

8. Mental Revolution

Scientific management is based on co-operation between management and workers.

Co-operation enhances the effective managerial activities.
Mutual conflict should be replaced by mutual cooperation which is beneficial to both.

Benefits of Scientific Management

The benefits of scientific management are:

1. Replacement of traditional rule of thumb method by scientific techniques.

2. Proper selection and training of workers.

3. Incentive wages to the workers for higher production.

4. Elimination of wastes and rationalization of system of control.

5. Standardization of tools, equipment, materials and work methods.

6. Detailed instructions and constant guidance of the workers.

7. Establishment of harmonious relationship between the workers.

8. Better utilization of various resources.

9. Satisfaction of the needs of the customers by providing higher quality products at lower prices.

Fayol's Administrative Management Theory:

Whereas scientific management focused on the productivity of individuals, the

administrative management theory concentrates on developing organisational structure that
leads to high efficiency and effectiveness. Organisational structure is the system of task and
authority relationships that control how employees use resources to achieve the organisation's
goals. The emphasis is on the development of managerial principles rather than work methods.
Henry Fayol was the most important exponent of this theory.

Henri Fayol (1841-1925)

A French mining engineer identified 14 principles of management based on his

management experiences. He believed that these principles are essential to increase the efficiency
of the management process. These principles provide modern-day managers with general
guidelines on how a supervisor should organise her department and manage her staff. Henry
Fayol is considered the father of modern theory of general and industrial management. Although
later research has created controversy over many of the following principles, they are still widely
used in management theories.

Fayol's contributions are published in his famous book The general and industrial
administration". Fayol's famous book falls two parts. The first part concerned with the theory of
administration in which Fayol divided the total industrial activities into six categories which are
given below:

1. Technical (Production, Manufacture).

2. Commercial (Buying, Selling, Exchange).

3. Financial (Search for and optimum use of capital).

4. Security (Protection of property and persons).

5. Accounting (Balance sheets, Cost statistics).

6. Management (Planning, Organising, Coordinating, Directing, Controlling)

The second part is concerned with the fourteen principles of management. They are:

1. Division of work

2. Authority and Responsibility

3. Discipline

4. Unity of command

5. Unity of Direction

6. Subordination of individual interest to general interest

7. Remuneration of personnel

8. Centralisation

9. Scalar chain

10. Order

11. Equity

12. Stability of tenure of personnel

13. Initiative

14. Esprit de corps.

1. Division of work:

Work should be divided in a proper way with reference to the available time. In general
worker on the same job and the managers on the same duty acquire ability sureness and accuracy
which increase their output.

2. Authority and Responsibility:

Authority: It is the power given to a person to get work from his subordinates.

Responsibility: It is the kind and amount of work expected of from man by his superior. One of the
essential elements of a good management is delegation of authority to the lower levels of
management and fixing responsibility on its own.

3. Discipline:

Discipline is essential for the smooth running of organisation. To Fayol, discipline will
result from good leadership at all levels of the organisation, fair agreements and judiciously
enforced penalties for infractions.

4. Unity of command:

An employee must receive orders and instructions from one supervisor only. Multiple
commands will cause conflicts and confusions. A sound management should avoid dual
commands.

5. Unity of Direction:

Unity of direction signifies each group of activities having the same objective with one head
and one plan. All the groups should coordinate and work together to achieve the common goal.

6. Subordination of individual interest to general interest:

Every employee is working in an organisation and his interest is to earn money to meet his
personal needs. The general interest of the organisation is the development and the progress of
the organization. The employees should give importance first to the general interest than his
individual interest It will lead to effective management of the organisation.

7. Remuneration of personnel:

Remuneration should be fair for both the employees and employers. The wage payment
systems should satisfy the employees.

8. Centralisation:

The organisation is centralized when the power is concentrated with one person. If the
power is fully distributed to the subordinates, the organisation is fully decentralized. For effective
management of people decentralization is necessary. Decentralization helps to take a quick
decision on all important problems.

9. Scalar chain:

Scalar chain principle states that instructions and orders should be sent from the top
management to the bottom management.

10. Order:

Two types of order 1) Materials order 2) Social order.

In any organisation materials and for men are provided in correct places so that materials
can be easily taken out and men easily located and also saved time.

Materials order: "A place for everything and everything in its place.
 Social order: "A place for everyone and everyone in its place.

11. Equity:

Equity refers to the treatment of employees equally. Equal treatment of the employees
helps to achieve organisational goals.

12. Stability of staff:

A high employee turnover rate is not good for the efficient functioning of any organisation.

13. Initiative:

It is concerned with thinking and execution of a plan. When employees come forward with
new ideas, they must be encouraged by the superiors. It will create the morale of the employees.

14. Esprit-de-corps:

This means union is strength. In organisation, employees should be harmony and unity. It
improves the employee morale.

Bureaucratic Management Theory

Max Weber (1864-1920)

A well-known German sociologist, coined the term "bureaucracy" to apply to the ideal of
large organizations operating on a rational basis. Many European organisations were managed on
a "personal" family-, such as basis and that employees were loyal to individual supervisors rather
than the organization. He believed that organisations should be managed impersonally and a
formal organisational structure, where specific rules were followed, w as important. In other
words, he did not think that authority should be based on a person's personality. He thought, the
authority should be something that was part of a person's job and passed from individual to
individual as one person left and another took over. This non-personal, objective form of
organisation was called a bureaucracy.

Weber believed that there are following three types of authority exist in nature:

1. Traditional

Subordinate obedience based upon custom or tradition (e.g., kings, queens, chiefs).

2. Charismatic

Subordinate obedience based upon special personal qualities associated with certain social
reformers, political leaders, religious leaders, or organisational leaders (e.g., Gandhi, Jawaharlal
Nehru, N.S.C.Bose, and Martin Luther King).

3. Rational-legal:

Subordinate obedience based upon the position held by superiors within the organisation
(e.g., police officers, executives, supervisors).

Weber developed the principles of bureaucracy which is a formal system of organisation

and administration designed to ensure efficiency and effectiveness. A bureaucratic system of
administration is based on the following characteristics:
 A well-defined hierarchy
Division of labour and specialization
System of written rules and regulations
Impersonal relationships between managers and employees
Selection and evaluation system
Records

BEHAVIOURAL MANAGEMENT THEORY:

Management principles developed during the classical period were simply not useful in
dealing with many management situations and could not explain the behaviour of individual
employees. In short, a classical theory ignored employee motivation and behaviour. As a result,
the behavioral theory was a natural outcome of this revolutionary management experiment. It
modified, improved and extended the classical theory. The behavioural theory pointed out the
role of psychology and sociology in understanding of individual and group behaviour in an
organisation. Several individuals and experiments contributed to this theory.

1. Mary Parker Follett (1868-1933)

He felt that Taylor was ignoring the human side of the organisation. She pointed out that
management often ignore the various ways in which employees can contribute to the organization
when managers allow them to participate in their everyday work lives. She felt that managers
needed to coordinate and harmonize group effort rather than force and compel people. She
brought to management the perspectives political science and social work. She identified:

The importance of the functioning of groups, not just individuals, in organisation.

The principle of "power with" rather than "Power over" in management employee
relations.
The conflict resolution through integration, i.e., finding a solution to a conflict that would
satisfy both parties.
The achievement of integrative unity, whereby the organisation operates as a functional
whole, with the various interrelated parts working together effectively to achieve
organisational goals.

2. Elton Mayo (1880 - 1949)

Elton Mayo's contributions came as a part of the Hawthorne studies which is a series of
experiments that rigorously applied classical management theory only to reveal its shortcomings.
A team of researchers from Harvard university, led by Elton Mayo, conducted some experiments
Known as Hawthorne Studies) and investigated informal groupings, informal relationships,
patterns of communication, patterns of informal leadership etc.

3. Hawthorne Studies

One series of studies was conducted from 1924 to 1932 at the Hawthorne works of the
Western Electric Company in Chicago. The Hawthorne experiment consists of four parts as
follows:

(i) Illumination Experiment:

This experiment was conducted to establish a relationship between lighting levels to

worker productivity. When the intensity of light was increased, the output also increased.
Surprisingly enough, they discovered that worker productivity increased even the lighting levels
decreased, i.e. until the employees were unable to see what they were doing, after which
performance naturally declined. Therefore, it was concluded that there is no consistent
relationship between output of workers and illumination in the factory. There must be some other
factors which affected the productivity.

(ii) Relay Assembly Test Room Experiment:

This phase aimed at knowing the impact factors, such as length of working day, rest hours,
and other physical conditions. In this experiment, Harvard researchers Mayo and F. J.
Roethlisberger supervised a group of five women in a separate room over the course of five years
(1927-1932) assembling telephone relays. They gave the women special privileges, such as the
right to leave their workstations without permission, take rest periods, enjoy free lunches, and
have variations in pay levels and workdays. Productivity and morale increased considerably
during the period of the experiment. Productivity went on increasing and stabilized at a high level
even when all the improvements were taken away and the pre-test conditions were reintroduced.
The researchers concluded that socio-psychological factor, such as feeling of being important,
recognition, attention, participation, cohesive work-group, and non-directive supervision held the
key for higher productivity.

(iii) Bank Writing Test Room Experiment:

This experiment was conducted by Roethlisberger and W.L.Warner with a view to find out
the causes which restrict the output. The experiment was conducted to study a group of 14
workers under conditions which were as close as possible to normal. Basically they put these
workers in a special room, and placed an observer full time in the room to record everything that
happened. After the experiment, the production records of this group were compared with their
earlier production records. It was observed that the group set its own production norms for each
individual worker, which was made lower than those set by the management. Because of this,
workers would produce only that much, thereby defeating the incentive system. Those workers
who tried to produce more than the group norms were isolated, harassed or punished by the
group. These results show that workers were more responsive to the social force of their peer
groups than the control and incentives of management.

(iv) Mass interview Programme:

The workers were interviewed in attempt to validate the Hawthorne Studies. The
participants were asked about, supervisory practices and employee morale. The results proved
that upward communication in an organisation creates a positive attitude in the work
environment. The workers feel pleased that their ideas are being heard. The general conclusion
from the Hawthorne studies was that human relations and the social needs of workers are crucial
aspects of business management. This principle of human motivation helped revolutionize
theories and practices of management.

4. Abraham Maslow (1908-1970)

A practicing psychologist developed one of the most widely recognized hierarchy of needs
theory. It is a theory of motivation based upon a consideration of human needs. His theory of
human needs was based on the following three assumptions:

1. Human beings have needs that are never completely satisfied.

2. Human behaviour is aimed at satisfying the needs that are yet unsatisfied at a given point in
time.

3. Motivation needs can be classified according to a hierarchical structure of importance, from the
lowest to highest.

Maslow broke down the needs of hierarchy into five specific areas:

Physiological needs
Safety needs
Belonging and love needs
Esteem needs
Self-actualization needs

Maslow's hierarchy of needs theory helped managers visualize employee high levels of
motivation.

5. Chester Barnard (1886-1961)

A president of New Jersey Bell Telephone Company, noticed organisations as social

systems that required human cooperation. He felt that executives serve two primary functions.

They must establish and maintain a communications system among employees

They must establish the objectives of the organisation and motivate employees

He also developed an acceptance theory of authority:

Authority of a manager flows from the ability of subordinates to accept or reject an order
from the manager once they.

Understand what the order requires of them

Review the order's consistency with organisation goals
Recognise a personal benefit in obeying the order

Systems Approach to Management:

System is a set of interrelated and interdependent parts arranged in a manner that produces a
unified whole. While an organisation as a whole is a system, the various components or parts
within it are called the subsystem. Thus, a department is a subsystem of the organisation. The
systems approach to management is based on the belief that organisations can be visualized as
systems of interrelated parts or subsystems that operate as a whole in pursuit of common goals.
An organization as a system is composed of five elements:

1. Input:

The various human, materials, financial, equipment, and informational resources required
to produce goods and services.

2. Transformation processes:

The organisation's managerial and technological abilities are applied to convert inputs into
outputs.

3. Output:
 The products, services, and other outcomes produced by the organization.

4. Feedback:

Information is about results and organisational status relative to its environment.

5. Environment:

The set of forces and conditions operate beyond an organisation's boundaries but affect a
managers ability to acquire and utilize resources.

The systems theory encourages managers to look at the organisation from a broader

perspective.

Managerial Levels based on Systems Approach:

Based on the system approach persons have suggested three meaningful levels in the
organisation.

(i)Technical level:

It involves actual production and distribution of products and services.

(ii) Organisational level:

It coordinates and integrates work performance at the technical level.

(iii) Institutional level:

It is concerned with relating activities of the organisation to environmental system. It

involves relating the organisation to the needs of the environment.

Contingency Approach to Management

The contingency approach is also called as situational approach. It was developed by

managers, consultant and researchers who tried to apply for real life situations. In the 1960s
Contingency theory was developed by Tom Burns and G.M. Stalker in the United Kingdom and
Paul Lawrence and Jay Lorsch in the United States. The crucial message of contingency theory is
that there is no one best way to organise. According to contingency theory, the characteristics of
environment affect an organisation's ability to obtain resources. For example, some management
concepts are more effective in one situation. The same management concept may fail in another
situation. Results or solutions differ because situations differ.

The contingency approach theory is more favour to the modern management theory.
Modern management theory suggests the psychological approach to the employees. The
contingency approach is highly dependent on the experience and judgment of the manager in a
given organizational environment.

7. What are the trends and challenges of management in global scenario?

Changes in socio-economic and political conditions are bound to bring the changes in the
environment within the organizations. The managers of today may find themselves obsolete
because of the rapid changes in the environment and therefore, they should update their
knowledge and skills to attain the needs and objectives of organization.
Workforce Diversity:

When workers join organizations, they come with their differing cultural values and life
style preferences. Therefore, the challenge for organizations is to make them accommodating to
diverse groups of people at the work place by addressing their different life styles, cultural
moorings, family needs, and work styles. If diversity is managed properly, it can increase the
creativity and innovations.

Changing Employee Expectations:

Besides changes in workforce, demographics employee's expectations and aspirations

have changed from traditional allurement, such as job security, good and attractive remunerations
to empowerment, equality and quality work life. The manager has then to redraw new methods of
motivation, such as job design. For example, motivation of workers to deliver their contribution
towards the accomplishment of organizational goals.

International Environment:

Creating an environment which is responsive to external changes, providing satisfaction to

members of the organizations and sustaining through culture, useful traditions, practices, and
even systems will become an another important dimension of managing personnel.

Building Organizational Capabilities:

The paradigm of managing managers would include not only assisting them to acquire new
skills and knowledge and to evaluate environmental changes to evolve business strategies but
also to love in a psychological state of readiness to continually change.

Job Design and Organizational Structure:

In designing an organization with foreign concepts, such as quality circles, TQM, etc.
instead of these organizational structure and design, it will primarily be based on

(i) Task approach

(ii) People approach

Changing Psycho-Social System:

In the traditional bureaucratic mode, the management was designed to perform its work
functions. But in future, human participation will be required to the management.

Technological Advance:

In the wake of technological advances, new jobs will be created and many old jobs will
become redundant. Unemployment resulting from modernization could be liquidated by properly
assessing manpower needs and training of redundant employees in alternate skills.

Management of human relations:

The new generation of workforce comprising educated and conscious workers will ask for
higher degree of participation and avenues for self fulfillment.

Changes in legal environment:

 To meet the increasing changes in the legal environment, necessary adjustments will have
to be made so that greater utilization of human resources can be achieved.

Expanding Globalisation:

Globalisation is the process of transformation of local or regional phenomena into global

ones. It can be described as a process by which the people of the world are unified into a single
society and function together. Globalization is often used to refer to economic globalization, that
is, integration of national economies into the international economy through trade, foreign direct
investment, capital flows, migration, and the spread of technology. Business has crossed the
national boundaries and thus, it has become a global popularly known as multinational business.

Globalisation of business posed at least two major challenges for managers. First in case of
multinational companies, the managers are frequently transferred to another country. In a new
country, the managers have to manage a workforce that is different in needs, aspirations and
attitudes from the ones, they were used to back in the former country.

Second even in their own country, the managers have to work with superiors, subordinates
and people are different in culture. In order to manage the employees effectively, the managers
need understand the varying culture accurately and then learn to adapt their management styles
accordingly.

Indian Business in the Globalisation:

Globalisation announced the New Industrial Policy (NIP) in along with other economic
reforms. According to NIP, liberalisation of Foreign investment was one of the features which
attempted to remove restrictions on foreign investment in Indian business.

The advance technology in telecommunication, transportation and information technology

have made possible the globalisation business. Indian companies have started participating in the
global business. For example, Ford-Escort, Maruthi - Suzuki Cars, Hero Honda motor cycle and
Coco cola-Thumps up. The following sector-vise list provides the Indian companies which
participate in global business.

1. Textiles:

Arvind Mills, Raymonds, Crazim, Vimal have got good will for mens suiting throughout the
world.

2. PharmaCeuticals:

Cipla, Orchid, Ranbaxy have manufacturing and marketing networks in many countries in
the world.

3. Software:

HCL, TCS, Infosys, Wipro, IBM are renowned manufacturers.

4. Automobiles:

Maruthi Cars and Hero-Honda in motorcycles are two important globally famous
companies. The effects of globalization in different sectors are summarised as follows:

(i) Industrial sector:

 It is the relation between emergence of worldwide production markets and a broader
access to a range of foreign products for consumers and companies. The particular movement of
material and goods is between and within national boundaries.

(ii) Financial sector:

It is the emergence of worldwide financial markets and better access to external financing
for borrowers. As these worldwide structures grew more quickly than any transnational
regulatory regime, the instability of the global financial infrastructure is dramatically increased, as
evidenced by the financial crises of late 2008.

(iii) Economic sector:

It is the realization of a global common market, based on the freedom of exchange of goods
and capital. The interconnectedness of these markets, however, meant that an economic collapse
in any one given country could not be contained.

(iv) Information technology:

Increase in information flows between geographically remote locations. Arguably, this is a

technological change with the advent of fibre optic communications, satellites, and increased
availability of telephone and Internet.

(v) Competition:

Survival in the new global business market calls for improved productivity and increased
competition. Due to the market becoming worldwide, companies in various industries have to
upgrade their products and use technology skillfully in order to face increased competition.

(vi) Cultural:

Growth of cross-cultural contacts; advent of new categories consciousness and identities

which embodies cultural diffusion, the desire to increase one's standard of living and enjoy
foreign products and ideas, adopt new technology and practices, and participate in a world
culture. Some regret the resulting consumerism and loss of languages. Spreading of
multiculturalism, and better individual access to cultural diversity (e.g. through the export of
Hollywood and Bollywood movies). Some consider such "imported" culture a danger. Since it may
supplant the local culture, causing reduction in diversity or even assimilation. Others consider
multiculturalism to promote peace and understanding between peoples.

(vii) Technical sector:

The development of a global telecommunications infrastructure and greater transponder

data flow, using such technologies as the Internet, communication satellites, submarine fiber optic
cable, and wireless telephones are considered with technical aspects.

(viii) Legal Ethical sector:

It is the creation of the international criminal court and international justice movements.
They do crime importation and raising awareness of global crime-fighting efforts and cooperation.
It is the emergence of Global administrative law. There is increase in the number of standards
applied globally; e.g. copyright laws, patents and world trade agreements.