Management Ugc Book Session Dec - 2019

HILAL AHMED: 9906837425
Page 1 1|Page UGC NET-MANAGEMENT SESSION:DEC-2019
1|Page UGC NET-MANAGEMENT SESSION:DEC-2019

UNIVERSITY GRANTS COMMISSION NET BUREAU
NET SYLLABUS
Subject: Management Code No. : 17
Unit – I
Management – Concept, Process, Theories and Approaches, Management Roles and Skills
Functions – Planning, Organizing, Staffing, Coordinating and Controlling. Communication –

Types, Process and Barriers.
Decision Making – Concept, Process, Techniques and Tools
Organization Structure and Design – Types, Authority, Responsibility,

Centralization, Decentralization and Span of Control
Managerial Economics – Concept & Importance
Demand analysis – Utility Analysis, Indifference Curve, Elasticity & Forecasting Market
Structures – Market Classification & Price Determination
National Income – Concept, Types and Measurement Inflation – Concept, Types and
Measurement Business Ethics & CSR
Ethical Issues & Dilemma Corporate Governance Value Based Organization
Unit – II
Organizational Behaviour – Significance & Theories
Individual Behaviour – Personality, Perception, Values, Attitude, Learning and Motivation
Group Behaviour – Team Building, Leadership, Group Dynamics Interpersonal Behaviour &
Transactional Analysis
Organizational Culture & Climate

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Work Force Diversity & Cross Culture Organisational Behaviour Emotions and Stress
Management
Organisational Justice and Whistle Blowing
Human Resource Management – Concept, Perspectives, Influences and Recent Trends
Human Resource Planning, Recruitment and Selection, Induction, Training and Development
Job Analysis, Job Evaluation and Compensation Management
Unit – III
Strategic Role of Human Resource Management Competency Mapping & Balanced

Scoreboard Career Planning and Development
Performance Management and Appraisal
Organization Development, Change & OD Interventions Talent Management & Skill

Development
Employee Engagement & Work Life Balance
Industrial Relations: Disputes & Grievance Management, Labour Welfare and Social Security
Trade Union & Collective Bargaining

International Human Resource Management – HR Challenge of International Business
Green HRM
Unit– IV
Accounting Principles and Standards, Preparation of Financial Statements
Financial Statement Analysis – Ratio Analysis, Funds Flow and Cash Flow Analysis, DuPont
Analysis
Preparation of Cost Sheet, Marginal Costing, Cost Volume Profit Analysis Standard Costing &
Variance Analysis
Financial Management, Concept & Functions
Capital Structure – Theories, Cost of Capital, Sources and Finance Budgeting and Budgetary
Control, Types and Process, Zero base Budgeting
Leverages – Operating, Financial and Combined Leverages, EBIT–EPS Analysis, Financial

Breakeven Point & Indifference Level.
Unit –V
Value & Returns – Time Preference for Money, Valuation of Bonds and Shares, Risk and
Returns;
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Capital Budgeting – Nature of Investment, Evaluation, Comparison of Methods; Risk and

Uncertainly Analysis
Dividend – Theories and Determination
Mergers and Acquisition – Corporate Restructuring, Value Creation, Merger Negotiations,

Leveraged Buyouts, Takeover
Portfolio Management – CAPM, APT
Derivatives – Options, Option Payoffs, Option Pricing, Forward Contracts & Future Contracts
Working Capital Management – Determinants, Cash, Inventory, Receivables and Payables

Management, Factoring
International Financial Management, Foreign exchange market
Unit - VI
Strategic Management – Concept, Process, Decision & Types
Strategic Analysis – External Analysis, PEST, Porter’s Approach to industry analysis, Internal
Analysis – Resource Based Approach, Value Chain Analysis
Strategy Formulation – SWOT Analysis, Corporate Strategy – Growth, Stability,

Retrenchment, Integration and Diversification, Business Portfolio Analysis - BCG, GE Business

Model, Ansoff’s Product Market Growth Matrix
Strategy Implementation – Challenges of Change, Developing Programs Mckinsey 7s

Framework
Marketing – Concept, Orientation, Trends and Tasks, Customer Value and Satisfaction
Market Segmentation, Positioning and Targeting
Product and Pricing Decision – Product Mix, Product Life Cycle, New Product development,
Pricing – Types and Strategies
Place and promotion decision – Marketing channels and value networks, VMS, IMC,
Advertising and Sales promotion
Unit –VII
Consumer and Industrial Buying Behaviour: Theories and Models of Consumer Behaviour
Brand Management – Role of Brands, Brand Equity, Equity Models, Developing a Branding
Strategy; Brand Name Decisions, Brand Extensions and Loyalty
Logistics and Supply Chain Management, Drivers, Value creation, Supply Chain Design,
Designing and Managing Sales Force, Personal Selling
Service Marketing – Managing Service Quality and Brands, Marketing Strategies of Service
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Firms
Customer Relationship Marketing – Relationship Building, Strategies, Values and Process
Retail Marketing – Recent Trends in India, Types of Retail Outlets.

Emerging Trends in Marketing – Concept of e-Marketing, Direct Marketing, Digital Marketing

and Green Marketing
International Marketing – Entry Mode Decisions, Planning Marketing Mix for International
Markets
Unit –VIII
Statistics for Management: Concept, Measures Of Central Tendency and Dispersion,

Probability Distribution – Binominal, Poison, Normal and Exponential
Data Collection & Questionnaire Design Sampling – Concept, Process and Techniques
Hypothesis Testing – Procedure; T, Z, F, Chi-square tests Correlation and Regression Analysis
Operations Management – Role and Scope

Facility Location and Layout – Site Selection and Analysis, Layout – Design and Process
Enterprise Resource Planning – ERP Modules, ERP implementation Scheduling; Loading,

Sequencing and Monitoring
Quality Management and Statistical Quality Control, Quality Circles, Total Quality
Management – KAIZEN, Benchmarking, Six Sigma; ISO 9000 Series Standards
Operation Research – Transportation, Queuing Decision Theory, PERT / CPM
Unit –IX
International Business – Managing Business in Globalization Era; Theories of International

Trade; Balance of payment
Foreign Direct Investment – Benefits and Costs
Multilateral regulation of Trade and Investment under WTO International Trade Procedures
and Documentation; EXIM Policies Role of International Financial Institutions – IMF and
World Bank
Information Technology – Use of Computers in Management Applications; MIS, DSS
Artificial Intelligence and Big Data
Data Warehousing, Data Mining and Knowledge Management – Concepts Managing

Technological Change
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Unit – X
Entrepreneurship Development – Concept, Types, Theories and Process, Developing

Entrepreneurial Competencies
Intrapreneurship – Concept and Process

Women Entrepreneurship and Rural Entrepreneurship
Innovations in Business – Types of Innovations, Creating and Identifying Opportunities,

Screening of Business Ideas
Business Plan and Feasibility Analysis – Concept and Process of Technical, Market and
Financial Analysis
Micro and Small Scale Industries in India; Role of Government in Promoting SSI Sickness in
Small Industries – Reasons and Rehabilitation
Institutional Finance to Small Industries – Financial Institutions, Commercial Banks,

Cooperative Banks, Micro Finance.
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PREFACE
I am glad indeed to place this title 2ND EDITION NTA MANAGEMENT in the hands of those
students who are preparing for NTA exam.
This book is written strictly according to the prescribed syllabus. In preparing this book, I have
freely drawn the material both from the books of Indian & foreign authors.
The book is divided into 11 units.
I request every teacher and the taught to bring such mistakes to the notice of the author so
that they can be redressed in the nest edition.
I welcome every constructive suggestion that goes in improving the quality of the work and
the utility of the book.
2019
Srinagar-J&K
190001
HILAL AHMED
(B.COM/M.COM/PGDBA)
EMAIL-AHMADHILAL850@GMAIL.COM
9906837425 / 7006246674
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CONTENTS
UNIT TITLE
No.
1 MANAGEMENT (REFERENCE)
2 ECONOMICS (REFERENCE)
3 ORGANISATION BEHAVIOUR (REFERENCE)

4 HUMAN RESOURCE MANAGEMENT

(REFERENCE)
5 ACCOUNTING (REFERENCE)
6 FINANCIAL MANAGEMENT (REFERENCE)
7 STRATEGIC MANAGEMENT (REFERENCE)
8 MARKETING MANAGEMENT (REFERENCE)
9 STATISTICS (REFERENCE)
10 INTERNATIONAL BUSINESS (REFERENCE)

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11 ENTREPRENEURSHIP DEVELOPMENT
(REFERENCE)

10 | P a g e UGC NET-MANAGEMENT SESSION:DEC-2019
UNIT-1
MANAGEMENT
 Management is an important element in every organization. It is the element that
coordinates currents organizational activities and plans for the future.
 The management adapts the organization to its environment and shapes the
organization to make it more suitable to the organization.
MANAGEMENT FUNCTIONS OR THE PROCESS OF MANAGEMENT
 Planning, Organizing, Leading & Controlling (Newman & Summer)

 Planning, Organizing, Commanding, Coordinating and Controlling (Henri
Fayol)
 ‘POSDCORB’: Planning, Organizing, Staffing, Directing, Coordinating, Reporting
& Budgeting (Luther Gulick)
 Decision Making, Organizing, Staffing, Planning, Controlling, Communicating &
Directing (Warren Haynes & Joseph Massie)
 Planning, Organizing, staffing, directing & Controlling (Koontz O’Donnell)
Functions of Management
Planning:- It is a process of deciding the business objectives and charting out the
plan/ method for achieving the same. This includes determination of what is to be
done, how, and where it is to be done, who will do it and how result are to be
evaluated. This function expected to be carried out throughout the organization. It
should be performed by the manager at all levels.
Organizing
According to Allen, the organizing refers to “ the structured which results from
identifying and grouping the work, defining and delegating responsibility and
authority and establishing relationships.”
To organize a business is to provide it with everything useful to its functioning i.e.

personnel, raw materials, machineries, capital etc. Once objectives are established,
manager has to develop plan to achieve them with help of human resources as well
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as material resources.
Directing
Directing involves communication, leadership and motivation. Communication is the

process of passing the information and understanding it from one person to other
person. Leadership is the function whereby the person or manager guides and

influences the work of his subordinates. Motivation is to motivate the employee to

give their best to the organization.
Controlling
The controlling involves-
1. Establishing standards of performance.
2. Measuring current performance and comparing it against the established

standard.
3. Taking corrective action that does not meet the standard. Control compels the
events to confirm to plans.
Management theories
Management theories are the set of general rules that guide the managers to manage
an organization. Theories are an explanation to assist employees to effectively relate
to the business goals and implement effective means to achieve the same.
GENERAL MANAGEMENT THEORIES
1. Frederick Taylor – Theory of Scientific Management
2. Henri Fayol – Administrative Management Theory
3. Max Weber - Bureaucratic Theory of Management
4. Elton Mayo – Behavioral Theory of Management ( Hawthorne Effect )
What is Scientific Management
• Scientific management, is a theory of management that analyses and synthesizes

workflows. Its main objective is improving economic efficiency, especially labour
productivity. It was one of the earliest attempts to apply science to the engineering of
processes and to management.
• Its development began with Frederick Winslow Taylor in the 1880s and 1890s
within the manufacturing industries. Its peak of influence came in the 1910s, by the
1920s, it was still influential but had begun an era of competition and syncretism
with opposing or complementary ideas.
• Although scientific management as a distinct theory or school of thought was

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obsolete by the 1930s, most of its themes are still important parts of industrial
engineering and management today. These include analysis, synthesis, logic,
rationality, empiricism, work ethics, efficiency and elimination of waste,
standardization of best practices, disdain for tradition preserved merely for its own
sake or to protect the social.
A bit about F.W. Taylor

• Frederick Winslow Taylor (March 20, 1856 – March 21, 1915) was an American
mechanical engineer who sought to improve industrial efficiency and then a
management consultant in his later years. He is often called "The Father of Scientific
Management." His approach is also often referred to, as Taylor's Principles, or
Taylorism.
• His influential monograph laid out the principles of scientific management, which
is a seminal text of modern organization and decision theory and has motivated
administrators and students of managerial technique. The monograph was
published in year 1911.
3 goals of F.W. Taylor
• First. To point out, through a series of simple illustrations, the great loss which the
whole country is suffering through inefficiency in almost all of our daily acts.
• Second. To try to convince the reader that the remedy for this inefficiency lies in
systematic management, rather than in searching for some unusual or extraordinary
man.
• Third. To prove that the best management is a true science, resting upon clearly
defined laws, rules, and principles, as a foundation. And further to show that the
fundamental principles of scientific management are applicable to all kinds of
human activities, from our simplest individual acts to the work of our great
corporations, which call for the most elaborate cooperation. And, briefly, through a
series of illustrations, to convince the reader that whenever these principles are
correctly applied, results must follow which are truly astounding.
PRINCIPLES OF SCIENTIFIC MANAGEMENT
1. Replacement of old rule of thumb method.
2. Scientific selection and training of workers.
3. Cooperation between labour and management.
4. Maximum output.
5. Equal division of responsibility.
Techniques of Scientific Management
1. Scientific Task Setting.

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It is essential to set the standard task which average worker should do during a
working day. Taylor called it a fair day’s work.
2. Work Study.
It implies an organized, systematic, analytical and critical assessment of the

efficiency of various operations. It includes following techniques.

• Method Study.
• Motion Study.
• Time Study.
• Fatigue Study.
3. Planning the Task.
Planning the task should be separated from the executive function. The detailed
planning should be done by the planning department.
4. Standardization.
Taylor advocated the standardization of tools and equipment, cost system and
several other items. Efforts should be made to provide standardized working
environment.
5. Scientific Selection and Training.
Management should design scientific selection procedure so that the right men are
selected for the right job.
6. Differential Piece-Wage Plan.
This plan was suggested to attract highly efficient workers. There are two piece work
rates, one is lower and another is higher. Standard of efficiency is determined either
in terms of time or output based on time and motion study.
7. Specialization.
Taylor advocated functional foremanship to introduce specialization. He

recommended eight foremen in all to control the various aspects of production.
Benefits of Scientific Management
• Replacement of traditional rule of thumb method by scientific techniques.
• Proper selection and training of the workers.
• Establishment of harmonious relationship between the workers and the

management.
• Detailed instructions and constant guidance of the workers.

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• Incentive wages to the workers for higher production.
• Better utilization of various resources.
• Satisfaction of the needs of the customers
Extra Points in Scientific Management Theory:

(1) Scientific Management needs the cooperation of the workers and the
management at various stages.
(2) The workers should understand the point of view of the management in
increasing the production and the profitability of the company.
(3) Taylor advocates group harmony by eliminating the dissatisfaction amongst the
works.
(4) The movement of material within the company should be scientifically done.
(5) Taylor emphasized the scientific selection of people and the need for appropriate
training. He developed the concept of work : “one best way of doing a job”
(6) He gave the concept of functional foremanship. As per this concept, he explained
the division of functional authority. The supervisors were delegated the authorities
in their specialized fields.
Pig Iron Experiment: Taylor is best known for his pig iron experiments Workers
loaded pigs of iron onto rail cars. Their daily average output was 12.5. Taylor
believed that output could be 48 tons by applying Scientific Management approach.
After scientifically applying different combination of procedure, techniques and
tools, Taylor succeeded in getting that level of productivity.
The theory was extended by Henry Grant, Frank Gilberth and Lillian Gilberth. Henry
Grant had defined new payment system and flow chart for work. While Lillian couple
had catalogued seventeen different hand motions such as “grasp”, “hold” for work.
Henry Gantts’s Contribution in Scientific Management:
Henry Gantt was a consulting engineer who specialized in control systems for shop
scheduling. Grantt saw the importance of the human element in production and
introduced the concept of motivation as used in industry today. He introduced two
new features in Taylor’s pay incentive scheme. First, every worker who finished a
day’s assigned work load was to win a 50 cent bonus for that day. Second even the
foreman was rewarded with a bonus for each worker who reached the daily
standard, plus an extra bonus if all the workers reached it. Gantt felt that this would
motivate a foreman to teach his worker to do ‘he job well. Gantt also developed the
idea of rating an employee publicly. Gantt developed the Gantt Charts that provides a
graphical representation of the flow of work required to complete a give task. The
chart represent each Planned stage of the work, showing both scheduled times and
actual time. This chart is precursor of modern day control techniques like Critical
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Path Techniques (CPM) and Programme Evaluation and Review Technique (PERT).
Frank Gilbreth and Lillian Gilbreth’s contribution to Scientific Management Theory:

Frank and Liilian Gilbreth made their contribution to the scientific management
movement as a husband –wife team. The Gilbreths turned motion study into an exact
science. They used motion pictures for studying and streamlining work motions.
They catalogued seventeen different hand motions such as ‘grasp’, ‘hold’ thereby
paving the way for work simplification. These they called ‘therbligs’. Thus, they
focused more on the production system along with taking care of the human side of
management. Gilbreths had 12 children. Frank and Lillian Gilbreth were so
dedicated to the idea of finding the one best way to do every job that two of their
children wrote Cheaper by the Dozen, a humorous recollection of scientific
management and motion study applied to Gilbreth household. The use of the camera
in motion study stems from this time and the Gilbreths used micro-motion study in
order to record and examine detailed short-cycled movements as well as inventing
cyclographs and chronocycle graphs to observe rhythm and movement.
HENRI FAYOL-Administrative Management Theory
 Henri Fayol was born in 1841 at Istanbul Turkey.

 He was a French management theorist.
 Fayol was one of the most influential contributors to modern concepts of

management.
 Fayol has been described as the father of modern operational management
theory
 The nineteen-year old engineer started at the mining company ultimately
acting as its managing director
 Based largely on his own management experience, Fayol developed his
concept of administration.
Major Contributions of Henri Fayol
First recognized that successful managers had to understand the basic managerial
functions and believed specific management skills could be learned and taught
He mentioned six activities of an enterprise:
1. Technical (production, manufacture, adaptation)
2. Commercial (buying, selling, exchange)
3. Financial (search for an optimum use of capital)
4. Security (protection of property and persons)
5. Accounting (Stock taking, balance sheets, cost statistics)
6. Managerial: Fayol’s universal management functions:

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1. Planning 2.Organizing 3.Commanding 4.Coordinating 5.Controlling
 Developed a set of 14 general principles of management.

 Provided 16 managerial duties that a manager has to perform
Fayol’s General Principles of Management

 Division of work
 Authority and responsibility
 Discipline
 Unity of command
 Unity of direction
 Subordination of individual interest to the common good
 Remuneration of personnel
 Centralization
 Scalar chain
 Order
 Equity
 Stability
 Initiative
 Esprit de corps
Division of work: Specializing encourages continuous improvement in skills and the

development of improvements in methods.
Authority : The right to give orders and the power to exact obedience.
Discipline : No slacking, bending of rules. The workers should be obedient and

respectful of the organization.
Unity of command : Each employee has one and only one boss.
Unity of direction : A single mind generates a single plan and all play their part in
that plan.
Subordination of Individual Interests : When at work, only work things should be

pursued or thought about.
Remuneration : Employees receive fair payment for services, not what the company
can get away with.
Centralization : Consolidation of management functions. Decisions are made from

the top.
Scaler Chain (line of authority) : Formal chain of command running from top to
bottom of the organization, like military
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HILAL AHMED: 9906837425 17 | P a g e UGC NET-MANAGEMENT SESSION:DEC-2019
Order : All materials and personnel have a prescribed place, and they must remain
there.
Equity : Equality of treatment (but not necessarily identical treatment)
Personnel Tenure : Limited turnover of personnel. Lifetime employment for good

workers.
Initiative : Thinking out a plan and do what it takes to make it happen.
Esprit de corps : Harmony, cohesion among personnel. It's a great source of strength
in the organization. Fayol stated that for promoting esprit de corps, the principle of
unity of command should be observed and the dangers of divide and rule and the
abuse of written communication should be avoided.
MAX WEBER: Bureaucratic Theory Of Management
Weber made a distinction between authority and power. Weber believed that power
educes obedience through force or the threat of force which induces individuals to
adhere to regulations.
According to Max Weber, there are three types of power in an organization :-
 Traditional Power
 Charismatic Power
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 Bureaucratic Power Or Legal Power

Bureaucracy refers to a specialized system and process of maintaining uniformity or
authority within an organization.
Principles of Bureaucratic theory
 Job specialization
 Authority hierarchy
 Formal selections
 Formal rules and regulations
 Impersonality
 Career orientation
Job specialization: Jobs are divided into simple, routine and fixed category based on
competence and functional specialization.
Authority Hierarchy: Officers are organized in hierarchy in which higher officer

controls lower position holders i.e. superior controls subordinates and their
performance of subordinates and lower staff could be controlled.
Formal selection: All organizational members are to be selected on the basis of

technical qualifications and competence demonstrated by training, education or

formal examination.
Formal rules and Regulations: To ensure uniformity and to regulate actions of

employees, managers must depend heavily upon formal organizational rules and
regulations. Thus, rules of law lead to impersonality in interpersonal relations.
Impersonality: Rules and controls are applied uniformly, avoiding involvement with
personalities and preferences of employees. Biasness and favoritism are not
preferred.
Career orientation: Career building opportunity is offered. Promotions and salary

hikes are strictly based on technical competence. They work for a fixed salaries and
pursue their career within the organization.
Criticism of Bureaucratic Organization
Bureaucratic organization is criticized because of the following reasons :-
• Bureaucratic organization is a very rigid type of organization. It does not give

importance to human relations. It is suitable for government organizations. It is also
suitable for organizations where change is very slow.
• Too much emphasis on rules and regulations. The rules and regulations are rigid
and inflexible.
• There will be unnecessary delay in decision-making due to formalities and rules.

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• Bureaucracy involves a lot of paper work. This results in lot of wastage of time,
effort and money.
ELTON MAYO: Behavioral Theory Of Management
Scientific Management Approach was concerned with physical mechanical aspects of

work. Human element is absent in it. Behavioral approach to management is

concerned with human element and human behavior. The behavioral management
theory is often called the human relations movement because it addresses the
human dimension of work. They believed that a better understanding of human
behavior at work such as motivation, conflict, and expectation will improve
productivity. Behavioral science is concerned with the social and psychological
aspects of human behavior in organization. Behavioral Approach proves that people
working in an organization have their needs and goals, which may differ from the
organization’s needs and goals. It also proves that individual behavior is closely
linked with the behavior of the group to which he belongs. Informal leadership,
rather than the formal authority of supervision is more important for group
performance.
Hugo Munsterbeg (1863-1916) is known as the “father of industrial psychology” and

is as important for psychology students as F.W. Taylor is for management students.
He focused to provide a view of psychology’s practical applications. Munsterbeg

believed that industry can be benefited by psychologists in three major areas:
 Seeking modern ways to hire the right person for the right job.
 Achieving optimum efficiency by identifying the psychological conditions.
 Finding methods to direct behavior of individual employees to be in harmony
with the management’s objectives
The Hawthorne Studies
A number of experiments done in Western Electrical Company, situated in Cicero,

that are known as “Hawthorne Studies.” It is considered as the best historical
contribution to the field of Organizational Behavior that provided a clear view of
relation of working conditions to efficiency of employees and productivity. Industrial
engineers at Western Electric started these studies in 1924 as an experiment of
scientific management and the studies continued till 1930’s. They tried to identify
that how different illumination levels affect worker productivity. Two groups were
created, control group and experimental group. The engineers examined the
experimental groups working in different lighting intensities; however, the control
group was examined under a constant lighting intensity.
The Western Electric Company, in 1927, invited Elton Mayo, professor at Harvard for
consultation on the studies.
The Hawthorne studies provided different findings:

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 Initially, studies did not provide any evidence of correlation between work
performance of individuals and change in lighting. In fact, work performance
almost increased with any change in illumination lighting.
 After that in the second phase, the studies become apparent. They revealed
that workers’ performance can be improved by just giving them the required
attention not because of the factors that the study aimed to examine.
 In the third phase of studies, the focus was on group productivity and

motivation of individuals.
 Ultimately, the Hawthorne studies provided a concept that the organization
also has social aspects that, if given proper attention, can contribute to better
performance or workers
System Approach to Management
System Approach is the most acceptable approach in the modern management. The
major contributories are Herbert A. Simon. George Homons, Philip Selznick etc. This
approach considers organization as a unified, directed system of integrated parts. It
emphasized that every organization is composed of different parts and one part
affect all other parts in a varying degree. System approach to management advocates
that manager should not accept limited view of responsibility. They should not
consider their units / departments as an individual and isolated units. Subordinate,
Manager and individual department should try to maximize their performance and
contribution to all departments of organization.
Contingency Approach to Management
According to this theory, there is no best way to manage all situations. In other
words, there is no one best way to manage. The contingency approach was developed
by managers, consultant and researchers. Paul Hersey and Ken Blanchard developed
the contingency of leadership. The contingency approach to management emerged
from the real life experience of managers who found that no single approach worked
consistently in every situation.
Universal Approach to Management
This approach considered management as a process. The process of management

consists of several functions like planning, organizing, directing, controlling. The
pioneering work was done by Henry Fayol. According to this approach, authority
originates at top and flows downwards in unbroken manner.
Quantitative Approach
This approach primarily focuses on the use of mathematical models. This approach
strived to resolve the problems amenable for quantitative analysis like
transportation problems, linear programming etc. It provides an objective base for
decision making.
Explain Schools (thoughts) of Management.

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The schools of management thought are theoretical frameworks for the study of
management. Each of the schools of management thought are based on somewhat
different assumptions about human beings and the organizations for which they
work. Disagreement exists as to the exact number of management schools. Different
writers have identified as few as three and as many as twelve. Those discussed below
include (1) the classical school, (2) the behavioral school, (3) the quantitative or
management science school, (4) the systems school, (5) and the contingency school.
THE CLASSICAL SCHOOL
The classical school is the oldest formal school of management thought. Its roots pre-
date the twentieth century. The classical school of thought generally concerns ways
to manage work and organizations more efficiently. Three areas of study that can be
grouped under the classical school are scientific management, administrative
management, and bureaucratic management.
(1) SCIENTIFIC MANAGEMENT.
Scientific management was introduced in an attempt to create a mental revolution in

the workplace. It can be defined as the systematic study of work methods in order to
improve efficiency. Frederick W. Taylor was its main proponent. Other major
contributors were Frank Gilbreth, Lillian Gilbreth, and Henry Gantt.
(2) ADMINISTRATIVE MANAGEMENT.

Administrative management focuses on the management process and principles of

management. Henri Fayol is the major contributor to this school of management
thought. Fayol argued that management was a universal process consisting of
functions, which he termed planning, organizing, commanding, coordinating, and
controlling. Fayol believed that all managers performed these functions and that the
functions distinguished management as a separate discipline of study apart from
accounting, finance, and production. Fayol also presented fourteen principles of
management.
(3) BUREAUCRATIC MANAGEMENT
Bureaucratic management focuses on the ideal form of organization. Max Weber was
the major contributor to bureaucratic management. Based on observation, Weber
concluded that many early organizations were inefficiently managed, with decisions
based on personal relationships and loyalty. He proposed that a form of
organization, called a bureaucracy, characterized by division of labor, hierarchy,
formalized rules, impersonality, and the selection and promotion of employees
based on ability, would lead to more efficient management. Weber also contended
that managers' authority in an organization should be based not on tradition or
charisma but on the position held by managers in the organizational hierarchy.
THE BEHAVIORAL SCHOOL
The behavioral school of management thought developed, in part, because of

perceived weaknesses in the assumptions of the classical school. The classical school
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emphasized efficiency, process, and principles. Some felt that this emphasis
disregarded important aspects of organizational life, particularly as it related to
human behavior. Thus, the behavioral school focused on trying to understand the
factors that affect human behavior at work. It includes :
(1) Human Relations (Hawthorne Experiments)
(2) Behavioral Science

THE QUANTITATIVE SCHOOL
The quantitative school focuses on improving decision making via the application of
quantitative techniques. Its roots can be traced back to scientific management. It
includes ;
(1) Management Science
(2) Operations Management
(3) Management Information Systems
SYSTEMS SCHOOL
The systems school focuses on understanding the organization as an open system

that transforms inputs into outputs. This school is based on the work of a biologist,
Ludwig von Bertalanffy, who believed that a general systems model could be used to
unite science. Early contributors to this school included Kenneth Boulding, Richard
Johnson, Fremont Kast, and James Rosenzweig. The systems school began to have a
strong impact on management thought in the 1960s as a way of thinking about
managing techniques that would allow managers to relate different specialties and
parts of the company to one another, as well as to external environmental factors.
The systems school focuses on the organization as a whole, its interaction with the
environment, and its need to achieve equilibrium.
CONTINGENCY SCHOOL
The contingency school focuses on applying management principles and processes
as dictated by the unique characteristics of each situation. It emphasizes that there is
no one best way to manage and that it depends on various situational factors, such as
the external environment, technology, organizational characteristics, characteristics
of the manager, and characteristics of the subordinates
CONTEMPORARY "SCHOOLS" OF MANAGEMENT THOUGHT
Management research and practice continues to evolve and new approaches to the
study of management continue to be advanced. This section briefly reviews two
contemporary approaches: total quality management (TQM) and the learning
organization. While neither of these management approaches offer a complete
theory of management, they do offer additional insights into the management field.
MANAGER
Page 22
A Manager is responsible for planning and directing the work of group of individuals,
monitoring their performance and taking corrective action when necessary for the
accomplishment of organizational goals and objectives.
Who Are Managers?
Someone who works with and through other people by coordinating their work
activities in order to accomplish organizational goals.
Types of Managers
First-line Managers: Are at the lowest level of management and manage the work of
non managerial employees
Middle Managers: Manage the work of first-line managers
Top Managers: Are responsible for making organization-wide decisions and

establishing plans and goals that affect the entire organization.
Managerial Concerns
Efficiency:
 “Doing things right”

 Getting the most output for the least input
Effectiveness
 “Doing the right things”

 Attaining organizational goals
ROLES OF A MANAGER
Henry Mintzberg in his book, “The Nature of Manageiral Work” published in 1973,
highlighted the roles of managers in an organization. He conducted a study of five
executives , the way they spend their time in the organization. He conducted a study
of five executives, the way they spend their time in the organization for serving the
organization. He classified three major managerial roles each with sub-classification
of ten roles. He classified such roles as under :
Interpersonal roles: Figurehead, leader, liaison
Informational roles: Monitor, disseminator, spokesperson
Decisional roles: Entrepreneur, disturbance handler, resource allocator, negotiator
1. The interpersonal roles link all managerial work together. The three
interpersonal roles are primarily concerned with interpersonal relationships.
Figurehead Role: The manager represents the organization in all matters of

formality. The top level manager represents the company legally and socially to
those outside of the organization. The supervisor represents the work group to
higher management and higher management to the work group.
Page 23
Liaison Role: The manger interacts with peers and people outside the organization.
The top level manager uses the liaison role to gain favors and information, while the
supervisor uses it to maintain the routine flow of work.
The leader Role: It defines the relationships between the manger and employees.

Direct and motivate subordinate, training counseling and communicating with

subordinates. (As a leader, he leads his division through motivating and encouraging
the employees under his span of control)
2. Informational Roles
The informational roles ensure that information is provided. The three

informational roles are primarily concerned with the information aspects of
managerial work.
Monitor Role: The manager receives and collects information about the operation of
an enterprise.
Disseminator Role: The manager transmits special information into the

organization. The top level manager receives and transmits more information from
people outside the organization than the supervisor.
Spokesperson Role: The manager disseminates the organization’s information into

its environment. Thus, the top level manager is seen as an industry expert, while the
supervisor is seen as a unit or departmental expert.
3. Decisional Roles
The decisional roles make significant use of the information and there are four
decisional roles.
Entrepreneur Role: The manager initiates change, new projects; identify new ideas,
delegate idea responsibility to others.
Disturbance Handler Role: The manager deals with threats to the organization. The
manager takes corrective action during disputes or crises; resolve conflicts among
subordinates; adapt to environmental crisis.
Resource Allocator Role: The manager decides who gets resources; schedule, budget
set priorities and chooses where the organization will apply its efforts.
Negotiator Role: The manager negotiates on behalf of the organization. The top level
manager makes the decisions about the organization as a whole, while the
supervisor makes decisions about his or her particular work unit.
TYPES OF MANAGER
The functions performed by mangers can also be understood by describing different

types of management jobs.
Page 24
(1) Functional Managers : Functional managers supervise the work of employees

engaged in specialized activities such as accounting, engineering, information
systems, food preparation, marketing, and sales. A functional manager is a manager
of specialists and of their support team, such as office assistants.

(2) General Managers : General managers are responsible for the work of several
different groups that perform a variety of functions. The job title “Plant General
Manager” offers insight into the meaning of general management. Reporting to the
plant general manager are various departments engaged in both specialized and
generalized work such as manufacturing, engineering, labor relations, quality
control, safety, and information systems. Company presidents are general managers.
Branch Managers also are general manager if employees from different disciplines
report to them.
(3) Administrator : An administrator is typically a manager who works in a public

(government) or nonprofit organization, including educational institutions, rather
than in a business firm. Managers in all types of educational institutions are referred
to as administrators. An employee is not an administrator in the managerial sense
unless he or she supervises others.
(4) Entrepreneurs : An entrepreneur is a person who founds and operates an

innovative business. Michael H. Morris defines entrepreneurship along three
dimensions: innovativeness, risk taking and proactiveness. After the entrepreneur
develops the business into something bigger than he or she can handle alone or with
the help of only a few people, that person becomes a general manager.
FOR COMPLETE NOTES OF

UGC NET MANAGEMENT
Page 25
ALL NOTES ARE ACCORDING TO NEW SYLLABUS PATTERN
SESSION: DECEMBER-2019

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HILAL AHMED: 9906837425

Page 1 1|Page UGC NET-MANAGEMENT SESSION:DEC-2019

1|Page UGC NET-MANAGEMENT SESSION:DEC-2019

UNIVERSITY GRANTS COMMISSION NET BUREAU

Subject: Management Code No. : 17

Functions – Planning, Organizing, Staffing, Coordinating and Controlling. Communication –

Types, Process and Barriers.

Decision Making – Concept, Process, Techniques and Tools

Organization Structure and Design – Types, Authority, Responsibility,

Managerial Economics – Concept & Importance

Ethical Issues & Dilemma Corporate Governance Value Based Organization

Organizational Behaviour – Significance & Theories

Individual Behaviour – Personality, Perception, Values, Attitude, Learning and Motivation

Organizational Culture & Climate

Organisational Justice and Whistle Blowing

Human Resource Management – Concept, Perspectives, Influences and Recent Trends

Job Analysis, Job Evaluation and Compensation Management

Strategic Role of Human Resource Management Competency Mapping & Balanced

Performance Management and Appraisal

Organization Development, Change & OD Interventions Talent Management & Skill

Employee Engagement & Work Life Balance

Trade Union & Collective Bargaining

International Human Resource Management – HR Challenge of International Business

Accounting Principles and Standards, Preparation of Financial Statements

Financial Management, Concept & Functions

Leverages – Operating, Financial and Combined Leverages, EBIT–EPS Analysis, Financial

Capital Budgeting – Nature of Investment, Evaluation, Comparison of Methods; Risk and

Dividend – Theories and Determination

Mergers and Acquisition – Corporate Restructuring, Value Creation, Merger Negotiations,

Portfolio Management – CAPM, APT

Working Capital Management – Determinants, Cash, Inventory, Receivables and Payables

International Financial Management, Foreign exchange market

Strategic Management – Concept, Process, Decision & Types

Strategy Formulation – SWOT Analysis, Corporate Strategy – Growth, Stability,

Retrenchment, Integration and Diversification, Business Portfolio Analysis - BCG, GE Business

Strategy Implementation – Challenges of Change, Developing Programs Mckinsey 7s

Market Segmentation, Positioning and Targeting

Customer Relationship Marketing – Relationship Building, Strategies, Values and Process

Retail Marketing – Recent Trends in India, Types of Retail Outlets.

4|Page UGC NET-MANAGEMENT SESSION:DEC-2019

Emerging Trends in Marketing – Concept of e-Marketing, Direct Marketing, Digital Marketing

Statistics for Management: Concept, Measures Of Central Tendency and Dispersion,

Hypothesis Testing – Procedure; T, Z, F, Chi-square tests Correlation and Regression Analysis

Operations Management – Role and Scope

Enterprise Resource Planning – ERP Modules, ERP implementation Scheduling; Loading,

Operation Research – Transportation, Queuing Decision Theory, PERT / CPM

International Business – Managing Business in Globalization Era; Theories of International

Foreign Direct Investment – Benefits and Costs

Information Technology – Use of Computers in Management Applications; MIS, DSS

Artificial Intelligence and Big Data

Data Warehousing, Data Mining and Knowledge Management – Concepts Managing

Entrepreneurship Development – Concept, Types, Theories and Process, Developing

Intrapreneurship – Concept and Process

5|Page UGC NET-MANAGEMENT SESSION:DEC-2019

Women Entrepreneurship and Rural Entrepreneurship

Innovations in Business – Types of Innovations, Creating and Identifying Opportunities,

Institutional Finance to Small Industries – Financial Institutions, Commercial Banks,

6|Page UGC NET-MANAGEMENT SESSION:DEC-2019