2 Management – Concept, Process, Theories and Approaches, Management Roles and Skills

2.1 What is Management?

Management is the work of getting things done through other people. The classroom shorthand is Mary Parker Follett’s — “the art of getting things done through people” — but the modern textbook treatment is more exact. Harold Koontz and Heinz Weihrich (Essentials of Management, 2010) define management as “the process of designing and maintaining an environment in which individuals, working together in groups, efficiently accomplish selected aims”. Stephen Robbins and Mary Coulter (Management, 13th ed., 2018) define it as “coordinating and overseeing the work activities of others so that their activities are completed efficiently and effectively”.

Two ideas sit inside every working definition — efficiency and effectiveness. NTA stems hinge on this distinction; learning it once handles a family of questions.

2.1.1 Efficiency vs Effectiveness — Drucker’s Twin Tests

Efficiency and Effectiveness — the Twin Tests

Test	Question it answers	Cue	Failure mode
Efficiency	Are we doing things right? Output per unit of input.	“Means” — minimising waste of resources	Producing the wrong product cheaply
Effectiveness	Are we doing the right things? Goal attainment.	“Ends” — achieving organisational objectives	Producing the right product wastefully

Peter Drucker captured the contrast in The Effective Executive (1967): “Efficiency is doing things right; effectiveness is doing the right things”. Good management is high on both. When the two pull apart, effectiveness comes first — a perfectly efficient operation that builds the wrong product is a costlier failure than an inefficient operation that builds the right one.

2.1.2 Influential Definitions

Influential Definitions of Management

Author	Working definition	What it foregrounds
Henri Fayol (1916)	“To manage is to forecast and plan, to organise, to command, to coordinate and to control”	Functions / process
F.W. Taylor (1911)	“Knowing exactly what you want men to do and then seeing that they do it in the best and cheapest way”	Efficiency and method
Mary Parker Follett	“The art of getting things done through people”	Human element
George R. Terry	“A distinct process consisting of planning, organising, actuating and controlling, performed to determine and accomplish stated objectives by the use of human beings and other resources”	Process — POAC
Peter Drucker	“A multipurpose organ that manages a business, manages managers, and manages workers and work”	Multidimensional
Koontz & Weihrich	“The process of designing and maintaining an environment in which individuals working together accomplish selected aims efficiently”	Environment design
Robbins & Coulter	“Coordinating and overseeing the work activities of others so that their activities are completed efficiently and effectively”	Coordination
Stoner, Freeman & Gilbert	“The process of planning, organising, leading and controlling the work of organisation members and of using all available organisational resources to reach stated goals”	Resource use

2.1.3 Characteristics of Management

Eight Characteristics of Management

Goal-oriented — every managerial act is justified by some end.
Pervasive / universal — needed in every organised effort, business or non-business.
Multidimensional — manages work, people and operations simultaneously (Drucker).
Continuous process — once a plan is executed, the next is already shaped.
Group activity — coordinates many people; no manager works alone.
Dynamic — adapts to changes in environment.
Intangible — felt through results, not seen directly.
Both science and art — empirical and creative.

2.2 Management — Science, Art, or Profession?

The question is older than the discipline itself. NTA stems often hinge on which feature is being foregrounded — systematic body of knowledge (science), personalised application (art), or formal training + ethics (profession).

Three Lenses on the Nature of Management

Lens	Defining trait	Why management qualifies	Why only partly
Science	Systematic body of knowledge, cause–effect, universally testable	Has principles (Fayol’s 14), tested theories, replicable findings	Human behaviour resists exact prediction; results vary by context
Art	Personalised application of knowledge for a desired result	Requires judgment, creativity, practice; same situation handled differently by two managers	Rests on a body of knowledge — not pure intuition
Profession	Specialised knowledge, formal training, code of ethics, service motive, restricted entry	Formal qualifications (MBA), institutes (AIMA), codes of conduct	Entry not legally restricted; many practising managers have no formal management qualification

Settled view

Management is an inexact science, a practising art, and a developing profession whose status has risen but is not yet fully closed in the way medicine or law is.

2.3 Levels of Management

Authority is layered. Three levels are recognised in every textbook, each with a different time horizon and a different dominant skill.

Three Levels of Management

Level	Typical titles	Time horizon	Dominant skill	Decisions
Top (Strategic)	Board, CEO, MD, President, COO	Long-range (3–10 years)	Conceptual	Mission, strategy, policy
Middle (Tactical)	Departmental heads, Plant manager, Regional manager	Medium-range (1–3 years)	Human + Conceptual	Translate strategy into operating plans
Lower / Supervisory (Operational)	Foreman, Section officer, Team leader	Short-range (days–months)	Technical + Human	Day-to-day execution

flowchart TB
  T[Top Management<br/>Strategy · Policy · Vision] --> M[Middle Management<br/>Translation · Coordination]
  M --> L[Lower Management<br/>Supervision · Execution]
    classDef default fill:#003366,color:#ffffff,stroke:#ffcc00,stroke-width:3px,rx:10px,ry:10px;

PYQ cue

The most-repeated stem matches a title to a level — “Foreman” = Lower, “Plant manager” = Middle, “CEO/MD” = Top. Reading the title carefully is half the work.

2.4 Katz’s Three Managerial Skills

Robert L. Katz (Harvard Business Review, 1955; reprinted 1974) proposed that effective managers need three kinds of skill, in different proportions by level.

Katz’s Three Skills

Skill	Definition	Highest at	Examples
Technical	Knowledge of and proficiency in a specialised field	Lower management	Operating a machine, writing code, accounting entries
Human / Interpersonal	Ability to work with, understand and motivate other people	All levels equally	Communication, leadership, conflict resolution
Conceptual	Ability to see the organisation as a whole and understand how parts fit	Top management	Strategy formulation, problem diagnosis, vision

flowchart LR
  L[Lower<br/>Technical 70%<br/>Human 20%<br/>Conceptual 10%] --> M[Middle<br/>Technical 30%<br/>Human 40%<br/>Conceptual 30%]
  M --> T[Top<br/>Technical 10%<br/>Human 20%<br/>Conceptual 70%]
    classDef default fill:#003366,color:#ffffff,stroke:#ffcc00,stroke-width:3px,rx:10px,ry:10px;

A fourth skill — added later

Some textbook authors add Design skill — the ability to design solutions to organisational problems (Koontz). It is not one of Katz’s original three. If the stem says “Katz’s classification”, stick to three — technical, human, conceptual.

Worked example. A CEO who can interpret a balance sheet but cannot articulate where the company should be in five years has technical skill in finance but lacks conceptual skill. A shop-floor supervisor who can dismantle and reassemble a CNC machine but cannot motivate the operators has technical skill but lacks human skill.

2.5 Mintzberg’s 10 Managerial Roles

Henry Mintzberg’s The Nature of Managerial Work (1973) is the canonical empirical study of what managers actually do. Mintzberg shadowed five CEOs and concluded that the textbook image of the reflective planner was wrong — real managers work at unrelenting pace, in brief and varied activities, prefer verbal communication, and live in interruption. He distilled the work into ten roles in three clusters.

Mintzberg’s Ten Roles in Three Clusters

Cluster	Role	What the manager does
Interpersonal (3)	Figurehead	Performs symbolic / ceremonial duties — greets visitors, signs documents
	Leader	Hires, motivates, develops, evaluates subordinates
	Liaison	Maintains a network of outside contacts
Informational (3)	Monitor	Scans environment for information; receives reports
	Disseminator	Passes information to subordinates
	Spokesperson	Transmits information to outsiders (board, media, regulators)
Decisional (4)	Entrepreneur	Initiates change projects to improve the unit
	Disturbance Handler	Responds to involuntary pressures and crises
	Resource Allocator	Decides who gets what — money, people, time
	Negotiator	Represents the unit in major negotiations

flowchart TB
  M{Mintzberg's<br/>10 Managerial Roles}
  M --> I[Interpersonal · 3<br/>Figurehead · Leader · Liaison]
  M --> N[Informational · 3<br/>Monitor · Disseminator · Spokesperson]
  M --> D[Decisional · 4<br/>Entrepreneur · Disturbance Handler<br/>Resource Allocator · Negotiator]
    classDef default fill:#003366,color:#ffffff,stroke:#ffcc00,stroke-width:3px,rx:10px,ry:10px;

Memorisation cue — 3-3-4

The cluster sizes are 3-3-4 (Interpersonal-Informational-Decisional, ten in all). The most-repeated PYQ stem matches a role to a cluster. The classic distractor: “Resource Allocator” sounds informational but is Decisional; “Spokesperson” sounds interpersonal but is Informational.

Worked example. A CEO addressing the press during a product recall is acting as Spokesperson (informational). The same CEO chairing a board strategy meeting is acting as Leader (interpersonal) of the top team and Resource Allocator (decisional) when budgets are signed off. Mintzberg’s point — every minute of a manager’s day cycles among these roles.

2.6 Management as a Process

Treating management as a process means viewing it as a connected sequence of activities, not a collection of one-off acts. The classical listings:

Process Functions — Three Listings

Listing	Functions	Author / origin
Fayol’s five	Plan, Organise, Command, Coordinate, Control	Henri Fayol, Administration Industrielle et Générale (1916)
POSDCORB	Planning, Organising, Staffing, Directing, COordinating, Reporting, Budgeting	Gulick & Urwick, “Papers on the Science of Administration” (1937)
Modern five (POSLC)	Planning, Organising, Staffing, Leading/Directing, Controlling	Koontz, Robbins, Stoner — current textbook standard

flowchart LR
  P[Planning<br/>Set objectives,<br/>choose course] --> O[Organising<br/>Group tasks,<br/>assign authority]
  O --> S[Staffing<br/>Recruit, train,<br/>develop people]
  S --> D[Directing<br/>Lead, motivate,<br/>communicate]
  D --> C[Controlling<br/>Measure, correct,<br/>feedback]
  C -. Feedback .-> P
    classDef default fill:#003366,color:#ffffff,stroke:#ffcc00,stroke-width:3px,rx:10px,ry:10px;

The dotted feedback line makes management a closed-loop activity — the output of control feeds the next round of planning.

POSDCORB mnemonic

Planning · Organising · Staffing · Directing · CO-ordinating · Reporting · Budgeting. Coined by Luther Gulick at the Brownlow Committee (1937). Each function gets its own topic in chapter 2 of this book.

2.7 Theories and Approaches — A Map

Management thought has evolved in three broad waves.

Three Waves of Management Thought

Wave	Period	Pre-occupation	Representative thinkers
Classical	1880s–1930s	Efficiency of work and structure	Taylor, the Gilbreths, Gantt, Fayol, Weber
Neo-classical / Behavioural	1930s–1950s	The human side of work	Mayo (Hawthorne), Maslow, McGregor, Herzberg, Likert
Modern	1950s–present	Wholeness, fit, and quantitative rigour	Bertalanffy, Lawrence & Lorsch, Fiedler, Simon, Drucker

flowchart LR
  C[Classical<br/>1880-1930<br/>Taylor · Fayol · Weber] --> N[Neo-classical<br/>1930-1950<br/>Mayo · Maslow · McGregor]
  N --> M[Modern<br/>1950-present<br/>Systems · Contingency · Quantitative]
    classDef default fill:#003366,color:#ffffff,stroke:#ffcc00,stroke-width:3px,rx:10px,ry:10px;

2.7.1 Classical Approach — Three Streams

The classical school treated the organisation as a machine to be tuned for output. It split into three streams.

Three Streams of the Classical School

Stream	Originator	Year	Core idea	Signature output
Scientific Management	F.W. Taylor	1911	Find the one best way through time-and-motion study; pay by output	Principles of Scientific Management; differential piece-rate
Administrative Management	Henri Fayol	1916	Universal principles for managing the whole organisation	14 principles; 5 functions
Bureaucratic Management	Max Weber	1922 (posth.)	Rational-legal authority through rules, hierarchy, impersonality	The “ideal-type” bureaucracy

Taylor’s Scientific Management (1911)

F.W. Taylor (1856–1915), an American mechanical engineer, conducted his famous experiments at Bethlehem Steel and Midvale Steel. His four principles of scientific management are:

Taylor’s Four Principles

#	Principle	What it requires
1	Science, not rule-of-thumb	Develop a science for each element of work
2	Scientific selection and training	Pick the right worker; train them in the science
3	Cooperation between management and workers	Both parties follow the science, not personal opinion
4	Division of work and responsibility	Mgmt plans; workers execute — almost equal share

Techniques Taylor introduced: time study (Taylor), motion study (Frank Gilbreth), the differential piece-rate system (higher rate for over-standard output, lower below standard), functional foremanship (eight specialist foremen replacing one general foreman), standardisation of tools and methods, and mental revolution (a shift in attitude required of both workers and managers).

Frank and Lillian Gilbreth refined motion study through therbligs — 17 elementary hand motions (Gilbreth spelt backward, almost). Henry L. Gantt added the Gantt Chart (1910s) for visual scheduling and the task-and-bonus wage plan.

PYQ cue

“One best way” → Taylor. “Therbligs” → Gilbreth. “Gantt chart” → Henry Gantt. “Differential piece-rate” → Taylor. “Functional foremanship” → Taylor.

Fayol’s Administrative Management (1916)

Henri Fayol (1841–1925), a French mining engineer, looked at the whole organisation, not the shop floor. His Administration Industrielle et Générale (1916) divided industrial activities into six categories — technical, commercial, financial, security, accounting, managerial — and isolated managerial activity as the proper subject of management theory.

He gave five functions of management (POCCC — Plan, Organise, Command, Coordinate, Control) and fourteen principles.

Fayol’s 14 Principles

#	Principle	One-line idea
1	Division of Work	Specialisation raises efficiency
2	Authority and Responsibility	Right to command + obligation to perform
3	Discipline	Obedience to agreements
4	Unity of Command	One subordinate, one boss
5	Unity of Direction	One head, one plan for one objective
6	Subordination of Individual Interest	Common good above private good
7	Remuneration	Fair pay to all
8	Centralisation	Right balance between centre and periphery
9	Scalar Chain	Clear line of authority top to bottom
10	Order	A place for everything; everything in its place
11	Equity	Kindliness and justice
12	Stability of Tenure	Reduce turnover; develop people
13	Initiative	Encourage employees to think and act
14	Esprit de Corps	Build harmony and unity

Distractor warning — Unity of Command vs Unity of Direction

Unity of Command — one subordinate has one boss.
Unity of Direction — one plan/objective has one head.
A salesperson reports to only one sales manager (Command); the entire sales drive is led by one VP-Sales (Direction).
Fayol’s Gangplank / Bridge: Two same-level officers in different chains may communicate horizontally with prior permission, short-circuiting the scalar chain.

Weber’s Bureaucracy (posth. 1922)

Max Weber (1864–1920), German sociologist, proposed the ideal-type bureaucracy as a remedy for the unstable charismatic and traditional forms of authority. The six pillars:

Six Pillars of Weber’s Bureaucracy

Division of labour by clearly defined offices.
Hierarchy of authority — each office under one above.
Formal rules and regulations — written, impersonal.
Impersonality — decisions without regard to person.
Technical competence — selection by qualification, not patronage.
Career orientation — protection of office, salary scale, tenure.

Three Types of Authority — Weber

Traditional authority — legitimacy from custom (kings, patriarchs).
Charismatic authority — legitimacy from personal magnetism (Gandhi, Hitler).
Rational-legal authority — legitimacy from rules and offices (the bureaucracy).

PYQ cue

“Ideal-type bureaucracy” → Weber. “Rational-legal authority” → Weber. The three types of authority are a frequent match-the-following stem.

2.7.2 Neo-classical / Behavioural Approach

The Hawthorne Studies (1924–1932)

The Hawthorne plant of Western Electric Company in Chicago hosted a long-running series of experiments funded initially by the National Research Council and later directed by Elton Mayo, F.J. Roethlisberger and W.J. Dickson of Harvard Business School. Four phases:

The Four Hawthorne Experiments

Phase	Years	What was varied	What was found
1. Illumination experiments	1924–27	Lighting (bright vs dim)	Output rose in both the test group and the control group — lighting alone could not explain
2. Relay Assembly Test Room	1927–32	Breaks, hours, refreshments	Output rose almost regardless of changes — attention mattered more than physical conditions
3. Mass Interview Programme	1928–30	21 000+ employee interviews	Workers wanted to be heard; non-directive interviews uncovered grievances
4. Bank Wiring Observation Room	1931–32	None — naturalistic observation	Informal group norms restricted output; rate-busters and chiselers were sanctioned by peers

The interpretation — people respond to attention and to social belonging more than to physical conditions — coined the Hawthorne Effect and opened the human-relations movement (Mayo, The Human Problems of an Industrial Civilization, 1933).

PYQ cue

“Hawthorne studies” → Elton Mayo (Harvard); plant location is Western Electric, Chicago. “Bank Wiring Room” reveals informal group norms. “Hawthorne Effect” = behaviour changes when observed.

Behavioural Science Movement

Building on Mayo, a generation of theorists examined motivation, leadership and group behaviour. The full treatment appears in Chapter 2; the names and one-line ideas appear below.

Major Behavioural Theorists — One Line Each

Theorist	Year	Contribution
Abraham Maslow	1943	Hierarchy of needs — physiological → safety → social → esteem → self-actualisation
Douglas McGregor	1960	Theory X (people dislike work) vs Theory Y (people seek responsibility)
Frederick Herzberg	1959	Two-factor theory — hygiene factors prevent dissatisfaction; motivators produce satisfaction
Rensis Likert	1961	Four systems of management — Exploitative-Authoritative, Benevolent-Authoritative, Consultative, Participative
Chris Argyris	1957	Immaturity-Maturity theory; mix model of organisation
Kurt Lewin	1947	Group dynamics; force-field analysis; Unfreeze-Change-Refreeze

2.7.3 Modern Approaches

Three Modern Approaches

Approach	Core proposition	Signature insight
Systems	Organisation is an open system — input → transformation → output → feedback with environment	Synergy; sub-systems interact; boundary management matters
Contingency	There is no one best way — the right structure / style depends on the situation	Lawrence & Lorsch’s differentiation–integration; Fiedler’s leadership contingency
Quantitative / Management Science	Use mathematical models, statistics and OR for decision problems	Linear programming, queueing theory, simulation, decision trees

Systems theory. Ludwig von Bertalanffy’s General Systems Theory (1968) supplied the language of inputs, throughputs, outputs and feedback. Daniel Katz and Robert Kahn (The Social Psychology of Organizations, 1966) applied it to organisations: open systems exchange energy and information across boundaries; sub-systems are production, supportive, maintenance, adaptive, managerial.

Contingency theory. Joan Woodward’s South Essex studies (1958) showed that the appropriate structure depends on the technology (unit, mass, process). Tom Burns and G.M. Stalker (The Management of Innovation, 1961) distinguished mechanistic (stable environment) from organic (changing environment) structures. Paul Lawrence and Jay Lorsch (Organization and Environment, 1967) introduced differentiation–integration as the dual challenge. Fred Fiedler’s contingency model of leadership (1967) — taken up in chapter 2 — extended the same logic to leader–situation fit.

Quantitative school. Grew out of WWII Operations Research. Its tools include Linear Programming (Dantzig 1947), Queueing Theory (Erlang), PERT/CPM (1958), Simulation, Decision Trees, Game Theory (von Neumann–Morgenstern). Herbert Simon’s Administrative Behavior (1947) — winner of the 1978 Nobel Prize in Economics — gave the bounded rationality model of decision-making.

Koontz’s ‘Management Theory Jungle’

Harold Koontz’s 1961 AMJ paper “The Management Theory Jungle” catalogued the eleven overlapping schools of management thought and warned the discipline risked confusion unless integrated. A 1980 update added more schools. Contingency and systems views are read as steps toward that integration.

2.8 Management By Objectives (MBO)

Peter Drucker introduced Management By Objectives in The Practice of Management (1954) and George Odiorne extended it in Management by Objectives (1965). MBO is a process in which managers and subordinates jointly set objectives, measure progress against them, and review performance. Its steps:

MBO Process

Step	Activity
1	Setting organisational objectives by top management
2	Cascading objectives down to departments and individuals
3	Joint goal setting between superior and subordinate
4	Implementation with autonomy
5	Periodic review of progress
6	Performance appraisal and reward
7	Recycle — feed lessons into the next round

Drucker insisted objectives must be SMART (Specific, Measurable, Achievable, Relevant, Time-bound — the acronym is George Doran’s, 1981).

Drucker’s eight key result areas

Drucker listed eight areas where objectives must be set: market standing, innovation, productivity, physical and financial resources, profitability, manager performance and development, worker performance and attitude, public responsibility.

2.9 Practice Questions

Q 01 Definition Easy

Who defined management as "the art of getting things done through people"?

AHenri Fayol
BF.W. Taylor
CMary Parker Follett
DPeter Drucker

View solution

Correct Option: C

The phrase is the classroom shorthand most often attributed to Mary Parker Follett, who placed the human element at the heart of management.

Q 02 Drucker Easy

"Efficiency is doing things right; effectiveness is doing the right things." The contrast is associated with:

AHenri Fayol
BPeter Drucker
CMary Parker Follett
DMax Weber

View solution

Correct Option: B

Peter Drucker drew the distinction in The Effective Executive (1967) — efficiency is about means; effectiveness is about ends.

Q 03 Nature Medium

The most accepted contemporary view of management is that it is:

AAn exact science
BPure art
CAn inexact science, a practising art, and a developing profession
DA closed profession like medicine

View solution

Correct Option: C

Management is treated as an inexact science (humans resist exact prediction), a practising art (judgment-heavy), and a developing profession (entry not legally restricted as in medicine).

Q 04 Katz's Skills Easy

Which level of management requires the highest conceptual skill in Katz's classification?

ALower
BMiddle
CTop
DEqual at all levels

View solution

Correct Option: C

Katz's pyramid: technical skill peaks at the bottom, conceptual skill peaks at the top, and human skill matters at every level.

Q 05 Katz's Skills Medium

Robert Katz's classification of managerial skills includes all of the following except:

ATechnical
BHuman
CConceptual
DDesign

View solution

Correct Option: D

Katz (1955, 1974) listed three — technical, human, conceptual. Design skill was added later by Koontz; it is not in Katz's original list.

Q 06 Mintzberg Easy

Mintzberg's ten managerial roles are grouped into how many clusters?

View solution

Correct Option: B

Three clusters with the 3-3-4 split — Interpersonal (3), Informational (3), Decisional (4).

Q 07 Mintzberg Medium

Match each Mintzberg role with its cluster:

(i)	Spokesperson	(a)	Decisional
(ii)	Resource Allocator	(b)	Interpersonal
(iii)	Figurehead	(c)	Informational
(iv)	Disturbance Handler	(d)	Decisional

A(i)-(c), (ii)-(a), (iii)-(b), (iv)-(d)
B(i)-(b), (ii)-(c), (iii)-(d), (iv)-(a)
C(i)-(a), (ii)-(b), (iii)-(c), (iv)-(d)
D(i)-(d), (ii)-(c), (iii)-(b), (iv)-(a)

View solution

Correct Option: A

Spokesperson → Informational; Resource Allocator → Decisional; Figurehead → Interpersonal; Disturbance Handler → Decisional.

Q 08 POSDCORB Easy

The expansion of POSDCORB does not include:

AReporting
BBudgeting
CMarketing
DCo-ordinating

View solution

Correct Option: C

POSDCORB = Planning, Organising, Staffing, Directing, CO-ordinating, Reporting, Budgeting (Gulick & Urwick, 1937). Marketing is not in the list.

Q 09 Schools Medium

Match the thinker with the contribution:

(i)	F.W. Taylor	(a)	14 principles of management
(ii)	Henri Fayol	(b)	Bureaucracy
(iii)	Max Weber	(c)	Scientific management
(iv)	Elton Mayo	(d)	Hawthorne studies

A(i)-(c), (ii)-(a), (iii)-(b), (iv)-(d)
B(i)-(a), (ii)-(c), (iii)-(d), (iv)-(b)
C(i)-(b), (ii)-(d), (iii)-(a), (iv)-(c)
D(i)-(d), (ii)-(b), (iii)-(c), (iv)-(a)

View solution

Correct Option: A

Taylor → Scientific management (1911); Fayol → 14 principles (1916); Weber → Bureaucracy (1922); Mayo → Hawthorne studies (1924–32).

Q 10 Taylor Medium

Functional foremanship — replacing one foreman with eight specialist foremen — was introduced by:

AHenri Fayol
BF.W. Taylor
CFrank Gilbreth
DHenry Gantt

View solution

Correct Option: B

Taylor proposed functional foremanship — four for planning (Route Clerk, Instruction Card Clerk, Time and Cost Clerk, Disciplinarian) and four for doing (Gang Boss, Speed Boss, Repair Boss, Inspector). Note: it violates Fayol's unity of command.

Q 11 Fayol Medium

"One subordinate, one boss" is the essence of which Fayol principle?

AUnity of Direction
BUnity of Command
CScalar Chain
DCentralisation

View solution

Correct Option: B

Unity of Command — one subordinate has one boss. Unity of Direction — one plan/objective has one head. Examiners exploit this confusion.

Q 12 Fayol Medium

Which of the following is not one of Fayol's 14 principles?

AUnity of Command
BEquity
CSpan of Control
DEsprit de Corps

View solution

Correct Option: C

Fayol's listing has Scalar Chain but not Span of Control by that name. Span of control is a separate concept in administrative theory.

Q 13 Weber Medium

Match Weber's three types of authority with their source:

(i)	Traditional	(a)	Personal magnetism
(ii)	Charismatic	(b)	Custom
(iii)	Rational-legal	(c)	Rules and offices

A(i)-(b), (ii)-(a), (iii)-(c)
B(i)-(a), (ii)-(b), (iii)-(c)
C(i)-(c), (ii)-(a), (iii)-(b)
D(i)-(b), (ii)-(c), (iii)-(a)

View solution

Correct Option: A

Traditional → Custom (kings, patriarchs); Charismatic → Personal magnetism (Gandhi); Rational-legal → Rules and offices (bureaucracy).

Q 14 Hawthorne Easy

The Hawthorne experiments are most directly associated with the rise of:

AScientific management
BBureaucratic management
CHuman relations approach
DQuantitative approach

View solution

Correct Option: C

Mayo's interpretation of the 1924–32 Hawthorne studies — that attention and social belonging drive productivity — opened the human-relations movement.

Q 15 Hawthorne Hard

The Bank Wiring Observation Room experiment at Hawthorne revealed primarily:

AEffect of illumination on output
BEffect of rest breaks on output
CInformal group norms restricting output
DEffect of wage incentives

View solution

Correct Option: C

The Bank Wiring Room (1931–32) used naturalistic observation and found informal group norms set the pace — peer pressure sanctioned rate-busters and chiselers. Illumination = Phase 1; rest breaks = Relay Assembly Test Room (Phase 2).

Q 16 Modern Approaches Medium

"There is no one best way; the right structure depends on the situation." This is the central claim of:

AScientific management
BContingency approach
CQuantitative approach
DBureaucratic approach

View solution

Correct Option: B

The contingency view (Woodward, Burns & Stalker, Lawrence & Lorsch, Fiedler) holds that "it depends" — fit between structure/style and the situation matters most.

Q 17 Systems Medium

In systems theory, an organisation that exchanges energy and information with its environment is called:

AClosed system
BOpen system
CStatic system
DStochastic system

View solution

Correct Option: B

An open system exchanges inputs, outputs and feedback with its environment (Bertalanffy 1968; Katz & Kahn 1966). A closed system is sealed off — a textbook abstraction rarely true of organisations.

Q 18 MBO Easy

Management By Objectives (MBO) was first formally articulated by:

AHenry Mintzberg in 1973
BPeter Drucker in 1954
CGeorge Odiorne in 1965
DHarold Koontz in 1961

View solution

Correct Option: B

Peter Drucker introduced MBO in The Practice of Management (1954). Odiorne later codified it in his 1965 book Management by Objectives. Drucker is the originator.

Q 19 Koontz Medium

The phrase "management theory jungle" was coined by:

AHarold Koontz
BHenry Mintzberg
CHerbert Simon
DPeter Drucker

View solution

Correct Option: A

Harold Koontz coined the phrase in his 1961 Academy of Management Journal paper to describe the proliferation of overlapping schools of management thought. He revisited it in 1980.

Q 20 Simon Hard

Herbert A. Simon's contribution to management theory — for which he received the 1978 Nobel Prize in Economics — is:

ATheory X and Theory Y
BBounded rationality in decision making
CHierarchy of needs
DTwo-factor theory of motivation

View solution

Correct Option: B

Simon's Administrative Behavior (1947) proposed bounded rationality — managers seek a *satisficing* rather than optimising solution. He won the Nobel Prize in Economics in 1978. Theory X/Y is McGregor; hierarchy is Maslow; two-factor is Herzberg.

2.9.1 Advanced Format Questions

AR 1Assertion-ReasonHard

Assertion (A): Taylor's scientific management focused on engineering efficiency at the shop floor.
Reason (R): Taylor believed the principal object of management is to secure maximum prosperity for employer and employee.

ABoth A and R are true; R is the correct explanation
BBoth A and R are true; R is NOT the correct explanation
CA is true, R is false
DA is false, R is true

View solution

Correct Option: B

Both true but R is a philosophical aim, not a mechanism for the shop-floor focus.

AR 2Assertion-ReasonMedium

Assertion (A): Fayol's 14 principles are universal.
Reason (R): Fayol drew them from his personal industrial experience as a mining engineer.

ABoth true; R explains A
BBoth true; R does not explain A
CA true, R false
DA false, R true

View solution

Correct Option: B

Both true but R is biographical context, not the reason for universality.

S 1Statement-basedMedium

Consider statements about Mintzberg's managerial roles: (i) Figurehead is informational. (ii) Spokesperson is informational. (iii) Disturbance handler is decisional. (iv) Monitor is interpersonal. Which are correct?

A(ii) and (iii) only
B(i) and (iv) only
C(i), (ii), (iii)
DAll four

View solution

Correct Option: A

Figurehead = interpersonal; Monitor = informational. Spokesperson is informational; Disturbance handler is decisional.

S 2Statement-basedHard

Identify correct statements: (i) POSDCORB was given by Gulick & Urwick. (ii) Hawthorne studies pioneered scientific management. (iii) Systems approach views organisation as open system. (iv) Contingency theory rejects "one best way".

A(i), (iii), (iv) only
B(i) and (ii) only
CAll four
D(ii) and (iv) only

View solution

Correct Option: A

Hawthorne pioneered Human Relations, not scientific management.

2.10 Quick Recall

Quick recall

Management = goal-directed coordination of work; judged on efficiency (means) and effectiveness (ends). Drucker: doing things right vs doing the right things.
Three lenses: Science · Art · Profession → settled view: inexact science, practising art, developing profession.
Three levels: Top (strategic, conceptual), Middle (tactical, human+conceptual), Lower (operational, technical+human).
Katz’s three skills: Technical (peaks at bottom), Human (equal at all levels), Conceptual (peaks at top). Design added later by Koontz — not Katz’s original.
Mintzberg (1973), 10 roles, 3-3-4 split: Interpersonal (Figurehead, Leader, Liaison) · Informational (Monitor, Disseminator, Spokesperson) · Decisional (Entrepreneur, Disturbance Handler, Resource Allocator, Negotiator).
Process functions: Fayol’s POCCC (5) → Gulick & Urwick’s POSDCORB (7) → modern POSLC / POSDC (5).
Three waves: Classical (Taylor 1911, Fayol 1916, Weber 1922) → Neo-classical (Mayo 1924–32, Maslow 1943, McGregor 1960, Herzberg 1959) → Modern (Bertalanffy 1968 systems, Burns–Stalker / Woodward / Lawrence–Lorsch / Fiedler contingency, Simon 1947 quantitative + bounded rationality).
Taylor’s 4 principles; Fayol’s 14 principles & 5 functions; Weber’s 3 authority types (Traditional, Charismatic, Rational-legal).
Hawthorne (Western Electric, Chicago; 4 experiments — Illumination, Relay Assembly, Mass Interview, Bank Wiring): attention > physical conditions.
MBO — Drucker, Practice of Management (1954); codified by Odiorne (1965); SMART objectives (Doran 1981).
Koontz’s “Management Theory Jungle” (1961, 1980) — 11+ overlapping schools.
Simon — bounded rationality + satisficing; 1978 Nobel Prize.