CHAPTER ONE

FUNDAMENTALS OF MANAGEMENT

INTRODUCTION
Right from the beginning of human civilization and from the time people began to live in groups,
the practice of management had began. As people started forming groups to achieve their goals,
even be it say for hunting, they quickly realized that managing is necessary to ensure proper
coordination of all the individuals in the group. Today if you look at the society you would
realize that the society stands on group effort and hence the importance of management. Ever
since people begun forming groups to accomplish aims, they could not achieve them as they
intended as managing individuals has been important to ensure the coordination of individual
efforts. As society has come to rely increasingly on group efforts and as many organized groups
have become large, the task of managers has been rising in importance.

Had it not been for the utilization of management principles and practices, the marvelous
accomplishments like the obelisk of Axum, the temple of Lalibela, the pyramids of Egypt, the
Great Wall of China, and many others would not have been possible. It is also possible to see
how much management is essential for successful accomplishment of individual as well as
organizational goals just by looking at what takes place in our vicinity.

We are all managers of our lives and the practice of management is found in every facet of the
human activities. It is not unique to business organizations but is common to all kinds of
organizations with certain objective to be achieved and resources to be deployed. Be the
organization is a school, a church, government unit, armed forces, charity organization, house
hold, etc, management is crucial for it enables an organization to achieve its objectives
efficiently and effectively.
1.1Definition of Management
There is no single, comprehensive and universally accepted definition of management. This
holds true due to the following major reasons among others:
 Different scholars view management from different perspectives
 Management as a discipline is recent in origin and hence there are a number of theories
being added to the field
 It is so broad that it is difficult to encompass all its aspects in a single definition
 It has undergone changes because of the developments in behavioral science and
quantitative techniques
 There are different approaches to management, definitions change as the environment
changes. The environment of an organization changes due to changes in the political,
social, economic, ethical and others factors.
 It has many areas of applications. It is applied in profit, not for profit, private, government,
social and business organizations.

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Yet, a definition of management is necessary to improve the practice of management. The
following are among the most widely accepted definitions of management:
1) According to F.W. Taylor, "Management is the art of knowing what you want to do in the
best and cheapest way."
2) According to H. Koontz and his co-author, "Management is the process of designing and
maintaining an environment in which individuals are working togetherto accomplish
efficiently selected aims."
3) According to Terry and Franklin, "Management is a distinct process consisting of activities
of planning, organizing, actuating, and controlling, performed to determine and accomplish
stated objectives with the use of human beings and other resources
4) According to HeneryFayol; "to manage is to forecast and plan, to organize, to command, to
coordinate, and to control.
5) According to Merry Parker Fellott; "the art getting things done through the efforts of other
people."
6) According to Kinard, "Management is the process of maximizing the potential of an
organization's people and coordinating their efforts to attain predetermined goals.
7) Management is defined as the process of planning, organizing, leading and controlling the
efforts of organization members and of using all other organizational resources to achieve
stated organizational goals.
For the sake of convenience, we can define management as a distinct process consisting of
managerial functions of planning, organizing, staffing, directing/leading, and controlling so as to
design and maintain conducive environment in order to achieve common group goals and
organizational objectives efficiently and effectively
 Organization is a group of individuals who work together toward common goals.
 Managers are the people who plan, organize, lead, and control the activities of the
organization so that its goals can be achieved
Nature of Management
From the above definitions we can state the following points that show the nature of
management.
 Management is a continuous process-whenever there is a group effort, the need for the
application of management arises.
 Management is viewed in terms of the managerial functions a manager does, i.e., planning,
organizing, staffing, leading, and controlling.
 Management deals with the coordination of both human and non human resources
 Universal application: Management is applied in any organization (large, small in size, or
service or manufacturing or for-profit or not-for-profit) and its functions are practiced in
any level of management.
 Goal oriented: an organization is established to attain objectives and management is
important for such organization with a pre stated goal to be achieved.

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  Divorced/separated from ownership: management does not signify ownership.
 It is a human activity: management activities are discharged by human beings not by
machines such as computers, that is, at best they can only assist rather than replace good
management practice.
 It signifies authority: since the significance of management is to direct, to guide and
control, it has to have authority. Authority is the power to order others to do something and
to behave in some way.
 It is multi disciplinary: it has grown as a body of discipline by taking the help of so many
social sciences like sociology, psychology, anthropology, economics, laws and others.
1.2 SIGNIFICANCE OF MANAGEMENT
Why do you study management? You may be wondering why you need to study management. If
you are majoring in any field other than management, you may not easily understand how
studying management is going to help you in your career. There are a number of reasons that
justify the study of management. Some of such reasons are described below.
 It is important for personal life.
 The Universality of Management: We can say with absolute certainty that management is
needed in all types and sizes of organizations, at all organizational levels and in all
organizational work areas, and in all organizations, no matter where they are located. This
is known as the universality of management.
 The Reality of Work: Another reason for studying management is the reality, that for most
of you once you graduate from university and begins your career; you either will manage
or be managed. For those who plan to be managers, an understanding of management
forms the foundation upon which to build your management skills. For those of you who
do not see yourself managing, you are still likely to have to work with managers.
 We all are affected by good or bad management practices and we should, therefore, learn
to recognize and influence the quality of management that affects our lives.
 It makes human efforts more productive: it brings better equipment, plants, offices,
products, services and human relations to our society. Improvement and progress are its
constant watch words.
 Combining isolated efforts and disjointed information: It plays a crucial role in combining
isolated efforts and disjointed information into meaningful relationships.
1.3 MANAGERIAL FUNCTION AN OVERVIEW
Managerial functions are the activities that managers are supposed to perform as result of the
position held in the organization. Regardless of the type of firm, all managers have certain basic
functions-planning, organizing, staffing, leading and controlling. Below, these functions are
briefly described. Later, each of them will be discussed in greater detail in a separate chapter.
1) Planning: is the process ofselecting mission and objectives and the course of action to attain
them. It is making decisions today about future actions. It is a decision making process that
determines what to do, how to do it, why it is done, when it is to be done, by whom it is to

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 be done and with what resources. It serves as a bridge that connects the present with the
future as in planning what should be done in the future is determined today.
2) Organizing: involves identification of activities to be carried out, grouping these activities
into working units, assignment of responsibilities to each unit with corresponding authority.
3) Staffing: As it has been pointed out, organizing involves creating job positions with
assigned duties and responsibilities. Staffing involves filling and keeping filled the positions
in the organization structure. It is concerned with locating prospective employees to fill the
jobs created by the organizing process. It basically deals with inventorying the people
available, announcing vacancies, accepting, identifying the potential candidates for the job,
recruiting, selecting, placing, orienting, training and promoting both candidates and existing
employees. Staffing is concerned with human resource of the organization.
4) Leading/Directing: is about inducing or motivating individuals and groups to exert their
effort towards organizational goals. In short, it is concerned with influencing people to work
hard. Leading encompasses three essential elements: motivation, leadership and
communication.
5) Controlling: is the process offsetting standards, measuring actual performance results,
comparing actual versus plan, identifying deviations and finally taking remedial actions if
the deviation between actual and plan is significant. The main objective is to ensure that
events conform to plans and if not, to bring them back to the normal track.
1.4Levels of Management and types of managers
Levels of Management
Levels of management refer to a line of demarcation between various managerial positions in an
organization. All managers perform the same management functions but with different emphases
because of their position in the organization. Although all managers may perform the same basic
duties and play similar roles, the nature and scope of their activities differ. An important
determinant of a manager’s job is hierarchical level. Levels refer to hierarchical arrangement of
managerial positions or persons in an organization. The number of managerial levels in an
organization depends on the size of the organization. In most organizations, however, there are
three distinct levels. How these levels are distinguished? What functions are performed at each
level? And the reporting relationships are some of the issues to be addressed.

Based on levels of management (vertical difference) or hierarchy we do have three types of

managers. A manager’s assigned duties and the authority needed to fulfill those duties are what
determine management level.
I. 1. Top Level Managers
Top-level managers are managers who are at the top of the organizational hierarchy and are
responsible for the entire organization. They are usually few in number and include the
organization’s most important managers - the CEO or the president and his/her immediate
subordinates usually called vice-presidents. However, the actual title may vary from organization
to organization. They are few in number because of the nature of the work they perform and

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economic problem. They deal with the big picture of the organization. They are responsible for
the overall management of the organization. They establish companywide objectives or goals &
organizational policies. Furthermore, top management:
o Develop overall structure of the organization.
o Direct the organization in accordance with the environment.
o Represent the organization in community affairs, business deals, and government
negotiations.
o Spent much of their time in planning and dealing with middle level managers and other
subordinates
o Work long hours and spend much of their time in meetings and on telephone.
o Are persons who are responsible for making decisions and formulating policies that affect
all aspects of the firm’s operations?
o Provide overall leadership of the organization towards accomplishment of its objectives.
o Top-level managers take the credit or blame for organizational success and failures
respectively.
2. Middle Level Managers
Middle level managers occupy a position in an organization that is above first-line management
and below top management. They interpret and implement top management directives and
forward messages to and from first-line management.
E Regardless of their title, their subordinates are lower level managers.
E Often coordinate and supervise the activities of lower level managers.
E Receive broad/overall strategies from top managers and translate it into specific objectives
and plans for First-Line Mangers/operating managers.
E Are responsible for the proper implementation of policies and strategies defined by top-level
managers. They interpret and implement top management directives and forward messages
to and from first-line management.
E Their principal responsibility is to direct the activity that implement the policies of the
organization.
E.g. Academic deans, Division Head, Plant managers, Army captain
3. First Level Managers/Supervisory Level managers
 Are those at the operating level or at the last level of management?
 Their subordinates are non-managers.
 They are responsible for overseeing and coordinating the work of operating employees.
 Assign operating employees to specific tasks.
 Are managers on which management depends for the execution of its plan since their job is
to deal with employees who actually produce the organization’s goods and services to
fulfill the plan?
 Are directly responsible for the production of goods and services
 Motivate subordinates to change or improve their performance
 Serve as a bridge between managers and non-managers.
 Spent much of their time in leading and little in planning

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  Are in charge of carrying out the day-to-day activities within the various departments to
ensure that short-term goals are met
E.g. Department Heads, supervisory personnel, Sales managers, Loan officers,
Foreman.

Top Level

Middle Level

First Line/lower level

Figure1.1 Levels of Management

Types of Managers
Based on the scope of responsibility (horizontal difference) oractivities they manage, managers
are divided into two:

I. Functional Managers
Functional managers are managers who are responsible for a department that performs a single
functional task and has employees with similar training and skills. Supervise employees
(managers + workers) with specialized skills in specific areas of operations such as accounting,
payroll, finance, marketing, production, or sales etc. They are responsible for only one
organizational activity; i.e. their responsibility is limited to their specialization/specification.
II. General Managers
General Managers are managers who are responsible for several departments that perform
different functions. They are responsible for the entire operations of the organization without
being specific. Oversee a complex unit, such as a company, a subsidiary, or an independent
operating division. S/he will be responsible for all activities of that unit, such as its production,
marketing, sales, and finance. A small company may have only one general manager – its
president or executive vice president – but a large organization may have several, each at the
head of a relatively independent division.
1.5 Managerial Roles and Skills
A. Managerial Roles
Role is an organized set of behaviors that is associated with a particular office or position. It is a
pattern of behavior expected by others from a person occupying a certain position in an
organizational hierarchy. A role is any one of several behaviors a manager displays as s/he
functions in the organization. Managerial roles represent specific tasks that managers undertake
to ultimately accomplish the five managerial functions. Factors, which affect managerial roles,

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are manager’s formal job description, and the values & expectations of other managers,
subordinates, and peers.

Henry Mintzberg identified 10 managerial roles, which are in turn grouped into three categories:
Interpersonal, Informational and Decisional Roles.

1. Interpersonal Roles involve developing and maintaining positive relationships with

significant others in the organization. It is communication oriented. It includes:
a) Figurehead Role: managers perform symbolic duties of a legal or social nature. The manager
is the head of his work unit, be it division, section or department. Because of this “lead
person” position, the manager represents his work unit at ceremonial or symbolic functions.
The top-level managers represent the company legally and socially to those outside of the
organization. The superior represents the work group to higher management and higher
management to the work group.
E.g. Signing documents, presiding at a ceremonial event, greeting visitors, attending a
subordinate’s weeding, taking a customer to lunch, university president hands out a diploma
for graduates – in all these cases the manager is representing his/her organization.
b) Leadership Role: The manager is the environment creator – s/he makes the environment
conducive for work by improving working conditions, reducing conflicts, providing feedback
for performance and encouraging growth. (Virtually all managerial operations involving
subordinates are examples for a leadership role). The leader builds relationship and
communicates with employees, motivates & coaches them. As a leader, the manager is
responsible for hiring, training, motivating, and encouraging employees/subordinates. The
leadership role is evident in the interpersonal relationship between manager and his/her
subordinates.
c) Liaison Role/Coordinator role: The liaison maintains a network of contacts outside the
work unit to obtain information. Refers to dealing with the member of the organization
superiors, subordinates, peer level managers in other departments, staff specialists and
outside contacts such as clients.The top management uses this role to gain favors and
information, while the superiors use it to maintain the routine flow of work. The manager
serves as a link between the organization and the informants who provide favors and
information. S/he fulfills this role through community service, conferences, social events, etc,
participation is meetings with representatives of other divisions.
2) Informational Roles: focuses on the transmission of important information to and from
internal and external sources. It involves the following activities:

a) Monitor role: is also called information-gathering role. This role refers to seeking, receiving,
screening, and getting information. The manager is constantly monitoring the environment to
determine what is going on. The monitor seeks internal and external information about issues
that can affect the organization. S/he seeks and receives wide variety of special information
to develop through understanding of the organization and the environment. Information is

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 gathered from news reports, trade publications, magazines, clients, associates, and a host of
similar sources, attending seminars & exhibitions.
b) Disseminator Role: what does the manager do with the information collected? Asthe
disseminator, the manager passes on to subordinates some of the information that would not
ordinarily be accessible to them. After the information has been gathered (by monitor role), it
has to be disseminated to superiors, subordinates, peers and other concerned clients.The
types of information to be forwarded to members could be facts, opinions, interpretations,
and influences.
c) Spokesperson/representative Role:the spokesperson transmits information about the
organization to outsiders. The manger is the person who speaks for her/his work unit to
people outside the work unit. One aspect of this role is to keep superiors well informed and a
second aspect is to communicate outside the organization like press, government agencies,
customers, and labor unions. Although the roles of spokesperson and figurehead are similar,
there is one basic difference between them. When a manager acts as a figurehead, the
manager’s presence is as a symbol of the organization, whereas, in the spokesperson role, the
manager carries information and communicates it to others in a formal sense. Thus, the
manager seeks information in the monitor role, communicates it internally in the
disseminator role, and transmits it externally in the spokesperson role. The three
informational roles, then, combine to provide important information required in the
decisional roles.
3) Decisional Roles:involve making significant decisions that affect the organization.
a) Entrepreneur Role (initiator of change): the manager acting as an entrepreneur recognizes
problems and opportunities and initiates actions that will move the organization in the
desired direction. In the role of entrepreneur, the manager tries to improve the unit. Often
s/he creates new projects, change organizational structure, and institutes other important
programs for improving the company’s performance. The entrepreneur acts as an initiator,
designer, and encourager of change and innovation.
b) Disturbance Handler Role: solution-seeking role. In the role of disturbance handler, the
manager responds to situations over which s/he has little control, i.e. that are beyond
his/her control and expectation such as conflict between people or groups, strikes, breach of
contract or unexpected events outside the organization that may affect the firm’s
performance. The disturbance handler is responsible for taking corrective action when the
organization faces important, unexpected difficulties.
c) Resource Allocator Role: decide on the allocation of the organization’s physical financial,
and human resources. As a resource allocator, the manager is responsible for deciding how
and to whom the resources of the organization and the manager’s own time will be
allocated. This involves assigning work to subordinates, scheduling meetings, approving
budgets, deciding on pay increases, making purchasing decisions and other matters related
to the firm’s human, financial, and material resources. The resource allocator distributes
resources of all types, including time, funding (finance), equipment, and human resources.

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d) The Negotiator Role: represent the organization in all important/major negotiations.
Managers spend a great deal of their time as negotiators, because only they have the
information and authority that negotiators require.
E.g. negotiations to buy firms, to get credit, with government, with suppliers, etc.
Managerial skills and their relative importance
A manager’s job is diverse and complex and it requires a range of skills. Skills are specific
abilities that result from knowledge, information, practice, and aptitude. Management success
depends both on a fundamental understanding of the principles of management and the
application of technical, human and conceptual skills.The skills of managers can be classified as
technical skill, human relations skill, and conceptual skill.
1) Technical Skills – involve process or technique, knowledge and proficiency. It is the ability
to use the tools, procedures, or techniques of a specialized field. It includes mastery of the
methods, techniques, and equipment involved in specific functions, such as engineering,
manufacturing, or finance. Technical skill also includes specialized knowledge, analytical
ability, and the competent use of tools and techniques to solve problems in that specific
discipline.
 Technical skills are most important at the lower levels of management. It becomes
less I important as we move up the chain of command because when they
supervise the others (workers), they have to show how to do the work.
E.g. A surgeon, an engineer, a musician, a quality controller or an accountant all have
technical skills in their respective areas.
2) Human Relations /Interpersonal Skill – is the ability to interact effectively with people. It is
the ability to work with, understand, and motivate other people, either as individuals or as
groups. Managers need enough of human relationship skill to be able to participate
effectively and lead groups. These skills are demonstrated in the way a manager relates to
other people, including the way s/he motivates, facilitates, coordinates, leads, communicates,
and resolve conflicts. A manager with human skills allows subordinates to express
themselves without fear of ridicule and encourages participation. A manager with human
skills likes other people and is liked by them. This skill is a reflection of the manager’s
leadership ability.
3) Conceptual skills – involve the formulation of ideas. It refers to the ability to see the big
picture – to view the organization from a broad perspective and to see the
interrelationsamong its components. It includes recognizing how the various jobs in an
organization depend on one another and how a change in any one part affects all the others. It
also involves the manager’s ability to understand how a change in any given part can affect
the whole organization, ability to understand abstract relationships, solve problems
creatively, and develop ideas. Conceptual skills are more important in strategic (long range)
planning; therefore, they are more important to top-executives than middle managers and
supervisors.

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Although all three of these skills are essential to effective management, their relative importance
to specific manager depends on his/her rank in the organization. Technical skill is of greatest
importance at supervisory level; it becomes less important as we move up the chain of command.
Even though human skill is equally important at every level of the organization, it is probably
most important at the lower level, where the greatest number of management–subordinate
interactions is likely to take place.

On the Other hand, the importance of conceptual skill increases as we rise in the rank of
management. The higher the manager is in the hierarchy, the more s/he will be involved in the
broad, long-term decisions that affect large parts of the organization. For top management, which
is responsible for the entire organization, conceptual skill is probably the most important skill of
all.

 Technical skill deals with things, human skill concerns people and conceptual skill has to do
with ideas.

Conceptual
Technical Skills

Top

Human Skills

Skills
Middle

First-line

Managerial Levels Managerial Skills

Fig. 1.2 Variation of skills necessary at different management levels

1.6 Universality of Management

Management is universal in the sense that
 Basic applications of management in any organizations are the same whether it is small or
complex, business or non-business. The managerial functions exist in every organization
regardless of the size and the type of the organization. This is because any organization has
an objective to be achieved and goal achievement requires planning, organizing, staffing
leading and controlling. (The army general, the bishop of the church, the financial manager
uses the same management principles to achieve objectives.)
 The concept of universality of management is also applicable to all levels of management
within an organization; it is not confined to a particular level. Although the scope of authority

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 held, responsibility assigned and the types of problems dealt vary from one level to another,
as managers all obtain results by establishing an environment for effective group endeavor.
 It is applicable for all human efforts; be it business, non-business, governmental, private. It is
useful from individual to institutional efforts.
 Management utilizes scientifically derived operational principles.
1.7 Is Management Science, Art, or a Profession.
Science: - It is an organized/systematized body of knowledge constituting concepts, theories, and
principles concerning a particular field of study. Especially, it is knowledge obtained from
observation, test, and experimentation of facts; and it is universally true; and applied in any
country, organization, etc. Besides, it exploits mathematical models. Management is a science
because:-
1) Its principles are systematized body of knowledge: As science, management is a
systematized body of knowledge representing a core of principles or fundamental truths
that tend to be true in most managerial situations. This systematized body of knowledge of
management helps the practicing manager to make decisions rationally and objectively
rather than rule of thumb, hunch, or intuition, what they did in the past.
2) Its principles are universally applicable: Scientific principles represent basic facts about a
particular field inquiry. These are objective and represent the best thinking on the subject.
These principles may be applied in all situations and at all times. For example, the Law of
Gravitation states that if you throw an object in the air it will fall on the ground due to the
gravitational force of the earth. This law can be applied in all countries and at all points of
time. Management contains sound fundamental principles, which can be universally
applied. For instance, the principle of unity of command states that at a time one employee
should be answerable to only one boss. This principle can be applied in all types of
organization-business or non-business. However, management is not considered as an
exact science as chemistry, physics etc. It is an Inexact Science. This is because,
management deals with people, and it is very difficult to predict accurately the behavior of
living human beings. It is to say that human behavior is even changing and unpredictable.
3) It is based on scientific inquiry, observation, test, and experiment: Scientific principles
are derived through scientific investigation and reasoning. It means that there is an
objective or unbiased assessment of the problem situation and the action chosen to solve it
can be explained logically. Scientific principles do not reflect the opinion of an individual
or of a religious guru. Rather these can be scientifically proved at any time. They are
critically tested. For example, the principle that the earth revolves around the sun has been
scientifically proved. Management principles are also based on scientific enquiry and
investigation. These have been developed through experiments and practical experience of
a large number of managers. For example, it has been observed that wherever one
employee has two or more bosses simultaneously, confusion and indiscipline are likely to
arise, with regard to following the instructions.

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 4) It explains the cause and effect relationships among/between various variables: Principles
of science lay down a cause and effect relationship between related factors. For example,
when water is heated up to 100ºC, it starts boiling and turns into vapor. Similarly, the
principles of management establish cause and effect relationship between different
variables. For instance, lack of balance between authority and responsibility will cause
management to become ineffective.
5) Its validity can be verifiable and can serve as a reliable basis for predicting future events:
Validity of scientific principles can be tested at any time and any number of times. Every
time the test will give the same result. Moreover, the future events can be predicted with
reasonable accuracy by using scientific principles. For example, the Law of Gravitation
can be tested by throwing various things in the air and every time the object will fall on
the ground. Principles of management can also be tested for their validity. For example,
the principle of unity of command can be tested by comparing two persons, one having a
single boss and other having two bosses. The performance of the first person will be
higher than that of the second.
Art:
Art implies the application of knowledge and skills to bring about the desired results. Art is
characterized by using common sense, personal feeling, beliefs, impulses, etc. It is doing things
in light of the existing realities of a situation. It is concerned with the application of know-how
and skill to the specific time, place, and condition tactfully, creatively and wisely. The essential
elements of arts are:
 Practical knowledge
 Personal skill
 Result oriented approach
 Creativity
 Improvement through continuous practice
Let us judge how far management fulfils these requirements:
1) Practical knowledge: Every art signifies practical knowledge. An artist not only learns the
theory but also its application in practice. For example, a person may have adequate technical
knowledge of painting but he cannot become a good painter unless he knows how to make
use of the brush and colors. Similarly, a person cannot become a successful manager simply
by reading the theory and getting a degree or diploma in management. He must also learn to
apply his knowledge in solving managerial problems in practical life. A manager is judged
not just by his technical knowledge but also by his efficiency in applying this knowledge.
2) Personal skill: Every artist has his own style and approach to his job. The successes of
different artists differ even when all of them possess the same technical knowledge or
qualifications. This is due to the level of their personal skills. For example, there are several
qualified singers but Mr. “X” has achieved the highest degree of success. Similarly,
management is personalized. Every manager has his individual approach and style in solving

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 managerial problems. The success of a manager depends on his personality in addition to his
technical knowledge.
3) Result-oriented approach: Arts seeks to achieve concrete results. The process of
management is also directed towards the accomplishment of desirable goals. Every manager
applies certain knowledge and skills to achieve the desired results. He uses men, money,
materials, and machinery to promote the growth of the organization.
4) Creativity: Art is creative and an artist aims at producing something that had not existed
before. Therefore, every piece of art requires imagination and intelligence to create. Like any
other art, management is creative. A manager effectively combines and coordinates the
factors of production to create goods and services. Molding the attitudes and behavior of
people at work, towards the achievement of the desired goals is an art of the highest order.

5) Improvement through continuous practice: Practice makes one perfect. Every artist
becomes more and more efficient through constant practice. A dancer, for example, learns to
perform better by continuously practicing a dance. Similarly, manager gains experience
through regular practice and becomes more effective.
Thus, “management is both a science as well as an art”. It is a science because it has an
organized body of knowledge consisting of certain universal facts. It is known as an art because
it involves creating results through practical application of knowledge and skills. However, art
and science are complementary to each other. They are not mutually exclusive. Science teaches
one to know and art to do. Art without science has no guide and science without art is knowledge
wasted. For example, a successful manager must know the principles of management and acquire
the skill of applying those principles for solving managerial problems in different situations.
Management as a Profession
Profession can be defined as an occupation backed by specialized knowledge and training, in
which entry is restricted.
Themain features of profession are:
1. Well defined Body of knowledge: In every profession there is practice of systematic body of
knowledge which helps the professionals to gain specialized knowledge of that profession. In
case of management also there is availability of systematic body of knowledge. There are large
numbers of books available on management studies. Scholars are studying various business
situations and are trying to develop new principles to tackle these situations. So presently this
feature of profession is present in management also.
2. Restricted Entry:The entry to a profession is restricted through an examination or degree. For
example a person can practice as Doctor only when he is having a degree. Whereas there is no
legal restriction on appointment of a manager, anyone can become a manager irrespective of the
educational qualification. But now many companies prefer to appoint managers only with MBA
degree. So presently this feature of profession is not present in management but very soon it will
be.
3. Presence of professional associations: For all the professions, special associations are
established and every professional has to get himself registered with his association before
practicing that profession. In case of management various management associations are set up at
national and international levels which have some membership rules and set of ethical codes but
legally it is not compulsory for managers to become a part of these organizations by registration.

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So presently this feature of profession is not present in management but very soon it will be
included.
4. Existence of ethical codes:For every profession there are set of ethical codes fixed by
professional organizations and are binding on all the professionals of that profession. In case of
management there is growing emphasis on ethical behavior of managers. Presently this feature
of profession is not present in management but very soon it will be included.
5. Service Motive: The basic motive of every profession is to serve the clients with dedication.
Whereas basic purpose of management is achievement of management goal, for example for a
business organization the goal can be profit maximization.

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