Introduction to Management
Management is the process of planning, organising, leading, and controlling organisational resources to achieve goals efficiently (minimum waste) and effectively (achieving objectives). Management is both a science (systematic knowledge, principles) and an art (practical application requiring skill and judgement). It is universal — needed in businesses, governments, NGOs, hospitals, and every organised human activity.
Nature and Characteristics
Management is goal-oriented (directed toward specific objectives), universal (applicable to all organisations), continuous (ongoing process), multidimensional (management of work, people, and operations), group activity (coordinating many people), dynamic (adapts to changing environment), and intangible (felt through results — a well-managed company runs smoothly).
Levels of Management
Top-level (CEO, MD, Board): sets goals, formulates strategies, makes policies. Requires conceptual skills. Middle-level (department heads, branch managers): implements strategies, coordinates between levels. Balanced skills mix. Lower-level (supervisors, foremen, team leaders): directly supervises workers, implements day-to-day plans. Requires technical skills. In Nepal, many SMEs have only two levels — owner-managers and workers.
Management Skills (Katz, 1955)
Technical skills: specialised knowledge, tools, techniques. Most important at lower levels. Human/Interpersonal skills: working with people — communication, motivation, team building. Important at all levels. Conceptual skills: seeing the organisation as a whole, strategic thinking. Most important at top levels.
Functions of Management (Fayol)
Planning (setting goals, developing strategies — 'what to do'), Organising (arranging resources, defining roles — 'who does what'), Leading/Directing (motivating, communicating — 'getting people to do it'), Controlling (monitoring, correcting — 'ensuring it’s done right'). These are interrelated and cyclical.
Evolution of Management Thought
Classical: (a) Scientific Management (F.W. Taylor, 1911) — time-motion studies, standardisation, piece-rate wages. (b) Administrative Theory (Henri Fayol, 1916) — 14 principles including division of work, unity of command, scalar chain. (c) Bureaucracy (Max Weber) — formal rules, hierarchy, merit-based selection. Behavioural: Hawthorne Studies (Elton Mayo, 1920s-30s) — social factors affect productivity more than physical conditions. Modern: Systems theory (interconnected parts), Contingency theory (no single best way — 'it depends'), Quantitative approach (mathematical models).
Management in Nepal
Evolving from traditional family-run to professional management. Family ownership dominates (Chaudhary Group, Golchha). Government corporations face bureaucratic challenges (Nepal Airlines, NOC). Growing professionalisation through MBA/BBA programs. Foreign investment bringing international practices.
Summary
Management is the universal process of achieving goals through POLC. Three levels require different skill mixes. Management evolved from classical through behavioural to modern approaches. Understanding these foundations prepares students for all subsequent management topics.
Management Levels Comparison
| Aspect | Top Level | Middle Level | Lower Level |
|---|---|---|---|
| Positions | CEO, MD, Board, Chairman | Dept Heads, Branch Managers, GM | Supervisors, Foremen, Team Leaders |
| Key Function | Strategic planning, policy making | Implementation, coordination | Day-to-day operations, supervision |
| Time Horizon | Long-term (3-5+ years) | Medium-term (1-3 years) | Short-term (daily to monthly) |
| Key Skill | Conceptual (70%) | Human/Interpersonal (50%) | Technical (70%) |
| Nepal Example | Binod Chaudhary (CG Group Chairman) | Regional Managers of Ncell/NTC | Branch supervisors, shop floor foremen |
Fayol’s 14 Principles of Management
Henri Fayol (1916) proposed 14 principles that remain foundational:
| # | Principle | Meaning |
|---|---|---|
| 1 | Division of Work | Specialisation increases efficiency and output |
| 2 | Authority & Responsibility | Right to give orders comes with obligation for results |
| 3 | Discipline | Obedience, respect, and adherence to agreements |
| 4 | Unity of Command | Each employee reports to ONE superior only |
| 5 | Unity of Direction | One plan, one head for each group of activities with same objective |
| 6 | Subordination of Individual Interest | Organisational interest above personal interest |
| 7 | Remuneration | Fair compensation for employees |
| 8 | Centralisation | Proper balance of decision-making authority |
| 9 | Scalar Chain | Clear line of authority from top to bottom |
| 10 | Order | Right person in right place, right material at right place |
| 11 | Equity | Kindness and fairness in treatment of employees |
| 12 | Stability of Tenure | Reasonable job security for employees |
| 13 | Initiative | Encourage employees to suggest and implement improvements |
| 14 | Esprit de Corps | Team spirit and unity among employees |
Taylor vs Fayol Comparison
| Aspect | F.W. Taylor | Henri Fayol |
|---|---|---|
| Focus | Shop floor / worker level | Top management / organisation level |
| Approach | Scientific Management (bottom-up) | Administrative Theory (top-down) |
| Key Idea | One best way to do each task | 14 universal principles of management |
| Emphasis | Efficiency, standardisation, wages | Functions of management (POCCC) |
| View of Worker | Economic being (motivated by money) | Social being (needs fair treatment) |
Exam Tips
Tip 1: Fayol’s 14 principles are the MOST frequently asked topic in BBS management exams — memorise all 14 with one-line explanations. Tip 2: Taylor vs Fayol comparison table is commonly asked — know at least 5 differences. Tip 3: Management levels with Nepal examples shows applied knowledge. Tip 4: “Management is both science and art” is a classic essay question — argue both sides with examples.