Chapter 1: Nature and Significance of Management

Ans: According to the above case: 

Akshita: Ashita was effective but not efficient as she completed her task within the set time frame but couldn't maintain the cost. Hence, she is inefficient, but effective.

Lakshita: Lakshita was neither effective nor efficient as she wasn’t able to complete her target on time.

Effectiveness means completing the given work in  the required time, whereas, Efficiency means completing work with minimum cost and resources. 

Ans: Management is considered to be both an art and a science because it fulfills the criteria of being an art and few criterias of being a science.

Management as an Art:

1. Existence of Theoretical Knowledge: It is a set of few pre-existing basic principles that are applicable in all types of organisations. A successful manager manages his day to day work based on few studies, experiences and observations.

2. Personalised Application: A manager uses the universal principles in his own unique manner as per the requirement which may vary from time to time and case to case.

3. Based on Practice and Creativity: A good manager applies various theories by moulding it according to the needs of the organisation.

Management as Science:

1. Systemised Body of Knowledge: Like science, management is also a systematized body of knowledge. It has its own theories that have evolved over time. It also has a common vocabulary that is used by the managers across the globe.

2. Principles Based on Experimentation: The principles of management have evolved over a period of time and it is made to tailor fit as per the time to time requirements of the managers, whereas, Scientific principles are developed through observation, testing, and repeated experimentation. 

3. Universal Validity: In science theories are fixed and are universally valid whereas, in management few basics are used to train the managers. These apply to all the organisations but may need modification to be suitable to given situation.

On comparing features of science with the management we can conclude that management cannot be considered as accurate science like physics, chemistry. But we can call it inexact science or soft science.

Ans:  No, management does not possess the features of a full fledged profession. 

The following are the reasons:

• Well Defined Body Of Knowledge: Every profession has a systematised body of knowledge which can be learned through instructions. This feature of the profession is present in management as it consists of systematic knowledge of concepts, theories and principles.

• Restricted Entry:  Professional degree is a must to become a professional but an individual with managerial skills can become a manager despite having no professional degree. Hence, this feature of the profession is not applicable to management as management is open to all individuals who want to learn skills of management.

• Professional Association: All professionals are affiliated to their respective professional associations, which regulate entry, grant certificates of practice, formulate, and develop code of conduct. This feature is not applicable to management as it is not compulsory for a manager to be a member of any management association.

• Ethical Code of Conduct: A strict code of conduct exists in every profession. This feature is not present in management as there is no specific code of conduct for managers.

• Service Motive: A professional and a manager both aim to provide dedicated and committed services towards the increase of their clients. However, in the case of management, the primary aim is generally profit maximisation, and not service motive.

Ans: A successful enterprise has to achieve its goals effectively and efficiently means:

• Effectiveness refers to completing work within the given time, while efficiency means completing the work with minimum resources and cost.

• For the success of any activity or business, it is crucial to achieve both effectiveness and efficiency in its operations.

• A successful business enterprise is measured by factors such as profits earned, cost-effective production techniques, and satisfied customer base.

• Achieving effectiveness and efficiency in business operations is necessary to complete activities within deadlines and with minimum resource wastage and cost.

• The combination of effectiveness and efficiency leads to the accomplishment of business goals and success of the enterprise.

Ans: Management is an ongoing series of various functions that are planning, organising, staffing, directing and controlling. Though they are independent, most of the time they are simultaneously performed.

• Planning: It involves establishing organisational goals, setting business targets and planning the process to achieve the same most effectively and efficiently. Planning entails deciding what to accomplish and how to do it ahead of time. It is a fundamental managerial function.

• Organising: It involves organising human and physical resources to implement decisions taken at the planning stage.Organising refers to the process of the identification, classification and coordination of work to be performed by establishing reporting relationships between the people, setting up their responsibilities and authorities so as to collectively integrate the human efforts for the successful achievement of organisational objectives.

• Staffing: Staffing is a management function that entails hiring candidates who are a good fit for the organization by evaluating their skills and knowledge and assigning them specific roles based on their skill set. It is involved in meeting an organization's human resource requirements. 

• Directing: Directing is the process in which a superior provides instructions, guidance and counselling to its subordinate so as to motivate and lead them for the successful achievement of objectives

• Controlling: Controlling is a process that entails comparing actual performance to the desired outcome, so as to ensure the successful achievement of objectives. Setting standards, measuring actual performance, and taking corrective action in case of deviations are all part of the managerial role of controlling function.

Ans: The following are the steps that the each level of the management can perform to increase the sale of product in the market:

A. Top Level Management

• They need to analyse the business environment and take decisions regarding the modification to be done.

• They need to establish objectives of modification, formulate plans and policies to implement the modification.

• They need to organise all physical and human resources required for modification.

• Inform all departments about modification and coordinate their activities.

B. Middle Level Management

• They must inform top level management about the possibilities of modification, market demand or expectations required to implement modification.

• They must interpret plans and policies and instruct lower level management for their implementation.

• They must recruit, select and train personnel to be able to take up modification.

• They must assign responsibilities and duties to lower level managers.

C. Lower Level Management

• Before the modification decision is taken, they may give their views about the kind of modification or technology is required

• They must issue orders and instructions to the workforce to implement plans.

• They must train or guide the workforce to carry out production activities.

• They must supervise work closely to ensure that work is done effectively and efficiently.

Ans: The firm’s planning is good, but there is a problem in implementation. The firm should take the following actions in the case above:

• Interdependency between the department needs to be maintained.

• The goals of an individual needs to be matched with the needs of the organisation.

• Efforts should be made to settle any differences between the departments, if there exists any.

• All the departments must be motivated to work hand-in-hand in order to reach the common objective as well as achieve their departmental goals.

• Proper communication and guidance needs to be provided in order to avoid any scope of misunderstanding.

• Timely and proper follow up and feedback  should be encouraged from the lower level to the higher level of management.

• Transparent, organized and clear work patterns should be fostered to avoid any miscommunication.

• Meetings should be held at periodic and regular intervals to ensure the smooth flow of operations.

• Proper training, both on the job and off the job should be provided to the employees, so that they could perform the work with utmost efficiency and effectiveness.

• Unity of command and unity of direction should be maintained.

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