Read this article to learn about the Nature of Management. Is management a science or an art?
Answer 1. Nature of Management:
Nature of management has been described differently by different experts.
Generally, management takes inspiration from multiple disciplines like psychology, sociology, economics, statistics, etc., but as a practice, it could be an art or a science which is discussed below:
1. Management as an Art:
Art is an application or expression of creative skill and imagination of human beings which is produced either through paintings, drawings, sculpture, music, literature and dance. Art is applied after years of experience in particular field of study or discipline. As an art, management is about having knowledge or know-how about the processes or business practices. It is doing things in a right way considering all realities surrounding around an organisation.
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Management as an art has the following characteristics:
i. Practical Knowledge:
Management is an art because it involves having practical knowledge about the workings of business, industry and the overall market. While theoretical knowledge is also a prerequisite, its application and learning from real-life situations enables an experienced manager to gauge the requirements of a particular business activity.
For example, a manager with certain level of experience in writing and research can direct their colleagues/employees to format and write business content that is quick and easy to understand for clients. With practical knowledge on writing reports for many years, the managers can easily recognise relevant points of interest for their clients and accordingly, direct their colleagues to write or present these findings.
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ii. Personal Skill:
Management as an art recognises every manager’s style or skills that can be directed towards a particular business activity or a job. This leads to different levels of success and quality of work across different managers with specialised skills. For example, some managers may be good at sales and marketing, while some may be good at research and some may be good at delegating work to other employees. Every manager will have their own way of managing things based on their knowledge, experience, personality and skills.
iii. Creativity:
Every manager will be different creatively. This implies that they would have their individual ideas to create or invent a new product, strategy or process. Organisations require creativity among managers to conduct specialised tasks that involve solving problems, issues or creating new products or strategies. Product development and marketing campaigns are two typical examples of creativity-intensive processes.
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iv. Perfection through Practice:
With practice comes proficiency, in a particular skill. Practice also allows managers to learn from trails and errors that makes them attentive and prepared for possible problems that may arise in the future.
v. Goal Oriented:
Management aims at achieving all goals and objectives of an organisation with maximum results but in an optimal manner. It is an art for managers to ensure that work is completed on time, production and sales targets are achieved, fair level of returns are obtained from investments, etc. Managers use their imaginative, intuitive skills and accordingly utilise resources like labour, capital, raw materials, machinery, money, etc., to promote growth of an organisation by being goal-oriented.
2. Management as a Science:
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Science is the intellectual and practical activity, which involves a systematic study of a certain structure or behaviour of the physical and natural world through observations and (controlled and uncontrolled) experiments. As per this definition, management is also considered as science because it has an organised body of knowledge which contains certain degree of truth. For example- good quality products and services lead to continuous customer demand and satisfaction.
Features of management as a science are further described below:
i. Universally Accepted Principles:
Management as a science consists of universally accepted principles which are widely or commonly used among stakeholders. Knowledge of management has been accumulated and accepted with reference to general truths. Like the law of gravitation in physics, management also has certain commonly accepted principles like the principle of unity of command, which involves management by one superior to be the most effective principle. This principle is applicable to most businesses of any scale of operations (small, medium or large).
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ii. Experimentation and Observation:
Scientific principles are based on objectively verified information based on research, observation and experiments. These principles are logically proved to be accurate by investigating certain phenomena, acquiring new knowledge or rectifying and integrating previous information using scientific and statistical methods. Management also follows the same process to derive certain principles.
For example- Hawthorne experiments conducted by Elton Mayo attempted to prove that incentives and rewards when provided to workers made them more productive. Based on the findings of this experiment many organisations boost employee’s morale by providing bonus, good working conditions, etc. for enabling increase in productivity.
iii. Cause and Effect Relationship:
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Scientific methods establish cause and effect relationship or causality among facts. Causality principle proves that the effects seen in a phenomenon during an experiment or reality has occurred due to a cause or a number of causes. For example, tide waves in the sea are caused by the gravitational pull from the moon. Similarly, in the management context, poor planning and unorganised plant layout results into low productivity.
iv. Systematic Body of Knowledge:
Like science, management is an organised body of knowledge developed by management practitioners, thinkers and philosophers over a period of years. Management is a systematised knowledge accumulated and acknowledged in terms of understanding of basic truths related to management.
v. Test Validity and Predictability:
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Validity of scientific principles can be tested at any time or any number of times, which implies that the principles can stand the test any time. For example, H2 (two atoms of hydrogen) and O2 (two atoms of oxygen) will result into H2O (water). Principles of management can also be verified for their validity. For example- principle of unity of command states that a subordinate positioned under one senior will perform effectively than the subordinate who has to follow up with multiple seniors.
3. Management is an Art as well as Science:
Management is a combination of art and science. According to Harold Koontz and Heinz Weihrich’s book, Essentials of Management, managing as practice is an art while the organised knowledge underlying the practice is a science. This implies that art and science complement each other and there is no strict line that distinguishes one from another. Management as a science attempts to solve problems and establishes principles which can be applied and practiced as an art for the benefit of the management.
4. Management as a Profession:
Profession is a paid occupation which requires prolonged and specialised training along with a formal education. There is an increase in demand for professionally qualified managers due to growing size of a business unit, separation of ownership and management, growing competitions, continuous changes in tastes and preferences of customers etc. Due to these factors everything needs to be managed professionally.
Essentials and key features of management as a profession are as follows:
i. Specialised Knowledge:
Like management, a profession must also have systematised and a specialised body of knowledge such that every professional makes attempts to seek specialised skills and expertise. To be a professional, a manager should have devotion and commitment for acquiring relevant practical expertise on the science of management.
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ii. Formal Education and Training:
Formal education and training broadly aims at providing specialised knowledge skills and training that caters to overall goals and objectives formulated by the management as well as support the interests of the society. There are number of accredited educational institutions in India and abroad which offer courses as a part of formal education and training, which attempt to develop professional and managerial skills. Courses include, Business Law, Statistics, Operations Research, Cost Accounting, Business Psychology, etc. which are incorporated into professional degree programs like Masters in Business Administration (MBA), Chartered Financial Accountants (CFAs), etc.
iii. Social Obligations:
A profession is a source of livelihood but the actions of professionals are influenced by social norms and values. Professional managers are not only responsible for achieving their owner’s goals and objectives but also responsible towards the society and are expected to provide quality-based products / services at reasonable prices.
iv. Code of Conduct:
A code of conduct is a set of rules outlining the responsibilities of, or proper practices for, an individual or a group of individuals. Professionals are expected to abide by a code of conduct especially in disciplines of law and medicine. These professions have specific restrictions and licenses for entry and practice. Other disciplines like management, business economics, etc. may not have explicit but implicit code of conduct wherein individuals are expected to maintain integrity in their work and act as professionals.
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v. Representative Association:
Professions are regulated and standardised through an association that represents their actions and beliefs. For example, the Institute of Chartered Accountants of India (ICAI) was established under the Chartered Accountants Act, 1949 (Act No. XXXVIII of 1949) regulates the profession of Chartered Accountants in India (ICAI, 2014).
Answer 2. Nature of Management:
The nature of management can be understood through its features.
An important aspect that explains the nature of management is that management is viewed as:
1. Science
2. Art
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3. Profession
1. Management as Science:
What is Science?
Science is a branch of knowledge that involves systematised observation and experiment with phenomena. It involves “the systematic development and testing of theories based on observation of behaviour”. It creates a general body of knowledge evolved through continuous testing and experiments. Testing of hypothesis evolves principles which establish cause and effect relationship amongst variables.
Features of Science:
Science is characterised by the following features:
(a) Clarity of Concepts:
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Science is characterised by universal concepts evolved through experiments.
(b) Scientific Methods:
Scientific methods involve study of phenomena through systematic procedure of observation, formulation of hypothesis and experiment. Repeated observation of similar facts leads to generalisations as to what will happen in similar situations. Scientific methods, thus, help in predictions.
(c) Clarity of Theory:
Grouping of interdependent concepts and principles that evolve an area of acknowledge is known as theory. Theory is a generalised set of principles and concepts.
(d) Causal Relationship:
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It explains relationship between two forces; one, the cause and other, the effect. It explains relationship between application of principles and its end result.
(e) Systematised Theory of Knowledge:
Science is not just a theory of knowledge. It is a systematised theory of knowledge. Scientific principles are applied in a systematic and scientific manner.
(f) Universal Application:
Scientific principles are universally applicable. They apply in all situations, all countries and all cultures. They do not change according to situations.
Is Management a Science?
On the basis of above features of science, let us analyse whether management is science or not.
(a) Clarity of Concepts:
Concept is a “mental image of anything formed by generalization from particulars.” Management as a discipline has a number of managerial concepts (management, administration, levels of management, functional areas of management, managerial planning, organisation charts and manuals etc.) which have evolved through the experience of managers in various organisations.
Management, therefore, can aptly be called a management science. Since management is studied as a separate discipline, a number of managerial concepts have evolved over a period of time. Concepts like organisation charts, organisation manuals, managerial planning etc. have gained widespread popularity and management can, thus, be called a science.
(b) Scientific Methods:
The study of scientific problem or scientific phenomenon through systematic multistep procedure of observation, formulation of hypothesis, experiment and development of a theory is known as scientific method. “A scientific method involves the determination of facts through observation.” Repeated observation of similar facts and situations leads to certain generalizations which help in making predictions about what will happen in similar situations.
While dealing with people in organisations, managers repeatedly observe the human behaviour analyze their physiological and psychological needs and frame policies and devices that satisfy those needs. Financial incentives, for example, can satisfy physiological needs and non-financial incentives satisfy psychological needs of human beings, is an aspect of motivation that has evolved through constant observation of human behaviour. Management can, therefore, be described as a ‘Science’.
(c) Clarity of Theory:
When scientific methods are tested for their accuracy, they result into principles. “Theory is a systematic grouping of interdependent concepts and principles that gives a framework to, or ties together, a significant area of knowledge.” Management has evolved over a period of years as a theory with generalized set of principles and concepts that support the organisation structure.
The principles of management are a universally accepted set of knowledge which have evolved through constant observation and experimentation (case studies on management) for dealing with managerial resources. They can be applied to different organisations. The principles of unity of command, unity of direction, scalar chain, esprit de corps, for example, have made management a universally accepted science or theory. Management can, thus, be called a science.
(d) Causal Relationship:
The principles of science usually explain relationship between two forces; the cause and the effect. There is some evidence of causal relationship (as in Science) between application of managerial practices and their end results. Financial management, for example, invests in assets (long-term and short-term) for wealth maximisation.
The principle of unity of command results in loyalty of subordinates towards superiors is a management principle that holds well in almost all organisations. Though not universally true (a subordinate may, at times, have to report to more than one boss), it is a generally accepted principle. Management thus, satisfies this principle of science.
(e) Systematised Theory of Knowledge:
Science is not just a set of principles (theory). It involves application of principles in a systematic and scientific manner to attain certain aims or goals. Luther Gulick defines management as “a field of knowledge that seeks to systematically understand why and how men work together to accomplish objectives and to make these co-operative systems more useful to mankind.”
Management concepts and principles have evolved over a period of time and have systematised into well-defined management theories being practised in all successful organisations. Management can, therefore, be rightly called a systematised body of knowledge. “Management science is a body of systematised knowledge accumulated and accepted with reference to the understanding of general truths concerning management.”
(f) Universal Application:
Though not always true, management principles are universally applicable. The principles of ‘Esprit de Corps’ — unity is strength is applied in almost every organisation and every situation. On this basis also management can be called a science.
Management is not an Exact Science:
Though management can be described as science of applying scientific concepts and methods in a systematised manner, with specific rules and regulations to achieve organisational goals, it is not an exact science. It is not as exact as physical science (Physics or Chemistry). Physical science has no direct or practical application in studying human welfare. It is studied only for understanding the natural phenomenon.
Management cannot be as pure as physical science. It is applied science. It deals with different problems and finds solutions to these problems to maximise human welfare. Management is social science (it is the study of human beings) based on accumulation of data, past experiences, tradition and reasoning.
It deals with human behaviour which changes in different situations. It is a social science that deals with maximisation of human welfare in specific situations. Management principles change with change in situations and human behaviour. These principles are, thus, flexible and change according to situations.
Management, therefore, can be called a behavioural science, social science or soft science.
“The field of management would truly become a science, when theory would be able to guide managers by telling them what to do in a particular situation and enabling them to predict the consequences of their actions”.
2. Management as Art:
What is Art?
Art is know-how. It is a branch of knowledge that gives personal expression to feelings, thoughts and ideas. It is a means to creative growth and does not depend on scientific experiments and testing. It requires application of personal aptitude and skill in assessing how best one can utilise resources to gain maximum benefit out of them.
Features of Art:
Art is characterised by the following features:
(a) Artist’s vision – An artist has clear vision of what he wants to make. He strives to achieve a definite goal.
(b) Knowledge – Art requires practical knowledge. Application of theoretical knowledge helps an artist in achieving his goal.
(c) Communication – An artist can fulfill his objectives if he is skilled in the art of communication with his artists. He alone cannot attain his goal.
(d) Creativity – Art requires creativity. Since there are no defined procedures and methods to achieve goals, the artist uses his imagination, skill and creativity to do so. Creativity can be enhanced through motivation and training.
(e) Skilled performance – Art requires application of personal skill. It differs for each artist and for each artistic situation. Every artist has his own way of performing the job.
(f) Practice – An artist can improve his performance through constant practice. His work is not based on scientific methods.
Is Management an Art?
On the basis of above features of Art, let us analyse whether management is art or not.
(a) Artist’s Vision:
As an artist (while he composes a painting or a musical note) has clear vision or picture of what he strives to achieve; management theorist also has to envision the future and frame the company’s objectives and plans. “Management art involves envisioning an orderly whole from chaotic parts, communicating the vision and achieving the goal. It is the ‘art of arts’ because it organises and uses human talent.”
(b) Knowledge:
As in Art, managers must clearly know their objectives and how they wish to achieve them. This results in optimum allocation of scarce resources over varied organisational objectives.
(c) Communication:
Similar to Art which requires effective communication between the artist and his artistes, successful managers need to effectively communicate the objectives, plans, procedures, orders and instructions to the subordinates (top-down communication) and listen to their grievances and complaints patiently (bottom-up communication). This is an essential element of management which helps to achieve the objectives efficiently.
(d) Creativity:
Management is a behavioural science. It deals with people. Managers, therefore, must have the art of knowing human needs and devise motivational plans to satisfy them. Art is always creative. Artist’s creativity can be enhanced through training and motivation. Management is also creative. It requires managerial skills to forecast the future, look for opportunities in the environment and exploit them gainfully. Managers need to be creative to coordinate the resources (human and non-human) for achieving the practical results.
(e) Skilled Performance:
As ‘Art’ requires application of personal aptitude and skill which differs for each artistic situation, managers also possess managerial skills to deal with different problem-solving situations. This enables the manager to optimally utilise the scarce organisational resources over different managerial activities.
Experience, observation and study of results, all contribute to skilled performance. “In that art requires a personal aptitude or skill, managers who must make organisational decisions about how best to position their resources in certain future markets are surely involved in an artistic process.”
(f) Practice:
Managers can expertise in the art of management through constant practice. The more they practice, the more they learn and become successful business entrepreneurs.
On the basis of above discussion, one may conclude that management is an art of applying skill, knowledge, creativity, personal judgment and innovativeness to understand the behaviour of subordinates and application of suitable devices to allocate scarce resources over organisational objectives. Scientific principles and theories cannot always solve organisational problems.
Management — Both A Science and Art:
Management is both, Science and Art. It cannot, however, be clearly defined as to when it is science and when art. As science, it is based on principles and theories on the basis of which managers act, and as Art, it deals with decision making processes through application of practical and personal skills. The art of management begins where the science of management ends. Science provides knowledge and art helps in application of that knowledge. Science provides the knowledge of management principles and art helps in skillfully applying those principles to solve managerial problems.
While science explains ‘why’ of a situation, art explains ‘how’ of it. Art explains how the problem can be solved once it is known why it has occurred. There is no best way to solve that problem. Every manager has individual approach and solves it to the best of his experience, knowledge, skill and creativity. A successful manager must have knowledge and skill of applying management principles in specific situations. The power of management lies in application of management science. Success in management comes not from knowledge of management but from how well that knowledge is applied in business situations.
3. Management as Profession:
What is a Profession?
Profession means occupation in some branch of advanced learning or science (for example, medical profession). It refers to application of specialised knowledge acquired after formal education and training programmes.
Features of Profession:
A profession is characterised by the following features:
(a) General Principles or Specialised Knowledge:
Professionals base their decisions on certain principles. These principles grow out of specialised knowledge that a person acquires through formal education and training programmes.
(b) Professional Status through Performance:
A person becomes a professional by continuously rendering services of specialised nature. Professionals acquire their status through work and not favouritism.
(c) Code of Ethics:
A specific code of ethics governs the functions of professionals. Professionals work within the rules and regulations of that code. This ensures fair and honest dealings on their part. Ethical code ensures that professionals are committed to their work and work in the best interest of society. Violation of this code is subject to punitive actions.
(d) Dedication:
Though professionals practice their profession for making financial gains, they are guided by the service motive also. True professionals work with complete dedication, commitment and loyalty.
(e) Association:
Every professional is guided by the norms of the association or council under which he exercises his profession. After attaining formal education in medicine, for example, a doctor is registered under the Medical Council of India. The association or council establishes the standards of performance for the professionals.
(f) Professional Qualification:
A person can exercise profession only after acquiring formal qualification and training. Chartered accountants, doctors, lawyers etc. exercise their professions after acquiring formal education in their respective fields. Anybody exercising a profession cannot do so without acquiring formal education in that area.
Is Management a Profession?
On the basis of above features of profession, let us analyse whether management is a profession or not.
(a) General Principles or Specialised Knowledge:
As management is a separate discipline, there are management principles and theories formally taught in management schools. These principles and theories help managers in efficiently discharging their organisational duties, though application of these principles and theories changes according to situations. Management can, thus, be called a profession.
(b) Professional Status through Performance:
In this regard management is not truly considered to be a profession, though gradually it is moving towards professionalism Though management is formally taught in management schools today, one can find people who hold managerial positions not by virtue of their performance but through favouritism. People attain managerial positions through their personal and political links. In today’s world where competition is intense, we are moving towards the end where management will become a full-fledged profession, that is, only those holding formal degree in management will acquire managerial positions.
(c) Code of Ethics:
Although code of ethics has been established by the All India Management Association, there is no strict adherence to it. Non-compliance to the code is not followed by punitive action. Though managers should look after the interests of the owners and other stakeholders, there is no universally accepted code of ethics for managers. There is no controlling body which ensures that ethical codes in management are strictly observed.
The All India Management Association does not fully represent the professional managers. Management cannot, therefore, strictly be termed as a profession on this ground. Though not compulsory, managers follow this code and perform ethical business practices to make their firms prosper in the competitive modern world.
(d) Dedication:
In almost every business organisation, managers practise management principles and theories with complete dedication and commitment. They constantly integrate organisational resources to harmonise organisational goals with goals of individuals working in the organisation. They dedicatedly work towards the attainment of organisational and individual goals. Management is, thus, a profession on this basis.
(e) Association:
Although All India Management Association exists to govern the smooth conduct of managerial practices, it is not compulsory for managers to become members of this Association. On the basis of an association establishing the standards of performance for managers to exercise managerial activities, management cannot be completely termed as a profession.
(f) Professional Qualification:
Though there are many institutions providing formal education and training in management programmes, yet it is not rare to find practising managers who have not acquired formal degree in the management courses but still prove to be successful managers. This is because of the experience they have gained by holding various managerial positions. No formal code of ethics is, therefore, developed and followed by all successful managers. In this sense of the term, management may not qualify to be termed as a profession.
It may be concluded that management is a profession on the basis of features like general principles or specialised knowledge and dedication, but it cannot truly be termed as a profession on the grounds of professional status, code of ethics and management association. Nevertheless, management being a distinct field of study is moving towards a full-fledged profession.
In this regard, Peter F. Drucker remarks:
“Management is professional — Management is a function, a discipline, a task to be done; and managers are the professionals who practice this discipline, carry out the functions, and discharge these tasks.”
Management is fast moving towards professional status as is evidenced by:
(i) Growing body of systematised knowledge.
(ii) Growing number of professional institutes providing knowledge of management,
(iii) Growing awareness of ethical practices followed by business organisations,
(iv) Growing emphasis on management being practised by management experts or consultants.
Answer 3. Nature of Management:
As we know that different human beings have different nature and their identity and personality is defined by it. Similarly management also has various natures which can be understood by analysing it from various points of view like art, science & profession.
1. Management as Science:
Before discussing whether management is a science, it is important to understand what is science.
Science is systematically organised body of knowledge based on proper findings and exact principles and is capable of verification.
Science is a body of systematised knowledge, accumulated and accepted with reference to the understanding of general truth, concerning a particular phenomenon, subject or object of study.
Any subject which is scientifically developed and consists of universally accepted principles is a science.
In order to be recognised as a science, a subject should have the following characteristics:
a. It should have a very systematised body of knowledge including concepts, principles and theories.
b. It should have a method of scientific enquiry.
c. It should ensure predictable results.
d. Its principles should be easily verifiable.
e. It should establish cause and effect relationships.
f. It should have universal application.
g. There must be deduction of specific hypothesis from the theory.
It is well known that management is a systematized body of knowledge pertaining to its field.
In it there is:
a. The formulation of problem or complex of problem is based on observation.
b. The construction of theory to provide answers to the problem or problems based on inductions from observations.
c. The deduction of specific hypothesis from the theory.
d. The recasting of the hypothesis in terms of specific measures and the operations required to test the hypothesis.
e. The devising of actual situation to test the theorem.
f. The actual testing in which the confirmation does or doesn’t occur.
However management is not a “perfect science” as other physical science like Astronomy, Physics, Chemistry, Biology etc. The main reason for the inexactness of science of management is that it deals with people and it is very difficult to predict their behaviour accurately. Since it is a social process, it falls in the area of “Social Science”.
This phenomenon is explained as below:
a. Science may be viewed in terms of structure, its goals and its methods. Each type of science attempts to provide a set of internally consistent hypothesis, principles, laws and theories dealing with an aspect of total knowledge.
b. One of the most important rules of science is that concepts have to be defined clearly in terms of the process involved in their measurement.
c. In science, observations must be controlled i.e. common method of elimination of a given factor as possible cause of an event is to hold constant. To keep it constant is necessary so that it does not operate as a source of change.
d. Theories in science are in terms of empirical confirmations. Scientific statements are testable and the tests are capable of repetition with the same result.
The various factors analysed above suggest that management is not a pure science but it can be simply called an ‘inexact science.’
Thus we can say that management is:
a. Social Science
b. Soft Science
c. Inexact Science
d. Partial Science
2. Management as Art:
The meaning of art is:
Art is the bringing about a desired result through the application of skills.
Art is the application of the knowledge or science or of expertise in performance.
Art is practised.
Under science one learns the “WHY” of a phenomenon, under art, one learns the “HOW” of it. Stated differently science is to seek knowledge and art is to apply knowledge.
If science is learnt, an art is practised.
Thus art has following features:
a. It denotes personal skills.
b. It is creative in nature.
c. It helps in achieving the concrete results.
d. It signifies practical knowledge.
Every manager has to apply certain knowledge and skills while dealing with people to achieve the desired results.
Management is one of the most creative arts as it requires a vast knowledge of some subject and certain innovating, initiating, implementing and integrating skills in relation to goals, resources, techniques and results.
Welding and moulding the behaviour of people at work towards achievement of certain goals in a changing environment is an art of highest order.
As an art, management calls for a corpus of abilities and judgment and a continuous practice of management concepts and principles.
Management is art because:
a. The process of management does involve the use of knowhow and skills.
b. Like any other art, management is creative in the sense that managing creates new situations needed for further improvement.
c. The process of management is directed towards the accomplishment of concrete results or predetermined goals.
d. Management is personalised, meaning thereby that there is no best management. Every manger has to apply his knowledge and skills to deal with various situations.
A manager is an artist because he applies the knowledge gained from the study of science of management for managing human and material resources.
From the above discussions, we can say that management is “Both a Science and Art”.
It is established as below:
Management uses both aspects-scientific knowledge that a manager requires and art that he applies. In managing an organization-
e.g. A driver who knows everything about driving i.e. when to be in 1st gear or any other and other driving rules, but can’t drive on road, is useless.
So besides knowledge (Science) we need skill (Art) to manage something.
A comparison between science and art suggests that a manager requires both aspects of management to be present for being successful.
3. Management as a Profession:
Profession:
Profession can be defined as a calling that requires specialized knowledge and often intensive academic preparation i.e. it is clear that in order to enter a profession, expert knowledge is required. Intensive academic preparation is not always necessary because it varies from profession to profession.
Various features of profession are as follows:
i. Specialized Body of Knowledge:
Like any other profession management also has well defined body of knowledge where people has to learn its techniques and principles. In management we have different streams like, production management, human resource management, marketing management, stress management, time management, etc. For every stream there are different rules, regulations and systems.
ii. Restricted Entry:
In order to enter any profession a person has to pass through a gateway of knowledge and at times academic preparation. Knowledge is a must to enter the profession. For example there are entrance exams, tests, interviews, board papers etc. in order to restrict the entry of the individuals. In some professions individuals are judged on the basis of analytical, critical, mathematical, logical and reasonings skills.
iii. Service Motive:
The main and very first requirement of any profession is service motive. Though it is always understood that the main purpose of almost every activity is to earn livelihood but along with it there should be the service motive. The purpose should be to serve the society, to work for the society.
iv. Representative Association:
Almost every profession has representative associations. For some professions it is even compulsory to have their membership in order to practice. For a lawyer, for instance, membership of bar council is must, for a doctor membership of IMA is a must, engineers, architects, chartered accountants etc. have to be members of their respective representative associations.
In management also we have representatives bodies like. All India Management Association, and other regional associations etc. but it is not mandatory to have the membership of this association in order to work.
v. Code of Conduct:
Members of the profession have to abide by the code of conduct which contains certain rules and regulations containing the norms of honesty, integrity and professional ethics. Any member violating the law can be punished and his membership can be cancelled. In management we have certain code of conduct, like-not to disclose the trade secrets, not to make personal gains etc.
Answer 4. Nature of Management:
Management as a Science:
Science is an organized body of knowledge based on proper findings and exact principles. This knowledge is acquired by mankind through observation and experimentation which is capable of verification. It establishes relationship between cause and effects. The main difference between science and art is that art indicates knowing how the application and science is concerned with knowing why? There are many branches of sciences such as biology, chemistry and social sciences like sociology, political sciences etc.
According to Keynes, “Science is a systematized body of knowledge which established relationship between cause and effect”.
The following are the features of science:
1. Systematized body of knowledge
2. Continued observation
3. Universal application
4. Cause and effect relationship
5. Validity and predictability
Now let us apply the above features to management to determine it considered as science.
1. Systematized Body of Knowledge:
Management is considered as a systematize body of knowledge developed by management thinkers and philosophers over a period of years. The principles of management make use of scientific methods for observation. In scientific management, F. W. Taylor has applied scientific techniques to studies of planning, organizing, staffing, motivating etc.
2. Continued Observation:
The knowledge of management has developed by many theorists and practitioners by constant and vigorous efforts.
3. Universal Application:
Scientific principles have universal application. Management also has principles which are accepted with reference to general truth. Thus, fundamental principles of management are applied universally.
4. Cause and Effect Relationship:
Scientific principles establish cause and effect relationship between various factors. Thus, management principles are also establish cause and effect relationship.
5. Validity and Predictability:
The principles of management can be verified for their validity. It by finding cause and effect relationship can serve reliable basis for predicting further events.
Management – Science as well as an Art:
Management has elements of both art and science. It may not be proper to term it as pure science or pure art. In fact, it is a science as well as an art because science and art are both complimentary to each other. As Cossa has said, “Science require art, Art requires science. Each being complimentary to each other”. It may be concluded that there is no hard and fast line between art and science of management.
The former (Science) will have to solve problems and establish principles which might be applied with benefit. In the words of Dear Stanely F. Teely- “Management is a mixture of art and science……………. the present ratio is about 90% art and 10% science. Though a very great deal of developments are presently increasing that proportion which can properly be called science. I am willing to venture a guess that by the end of another generation the ratio will be 80% art and perhaps 20% science”.
Distinction between Science and Art:
In Science:
1. It advances by Knowledge
2. It proves the concepts
3. It predicts the events
4. It measures the results
5. It impress the decisions
In Art:
1. It advances by practices
2. Here one feels the things and people
3. Here, one guesses about things and people
4. It describes situations and people
5. It makes opinions about people and express views on situation and people
Management as a Profession:
The rapid development of business and the suppression of ownership and management in the corporate form of enterprises have contributed to the emergence of management as a distinct profession. Whether management is a profession or not, to discuss this thing, it would be relevant to have a clear understanding of the essential elements of profession.
The term ‘profession’ has been defined by Mc. Forland, in these words “A profession is a source of livelihood, based on substantial body of knowledge and its formal acquisition and whose test of success in the services not the profit earned thereon”.
Thus, a profession traditionally has the following 5 characteristics:
1. A body of knowledge
2. Formal teaching of that knowledge
3. A representative association or body of members
4. Ethical standards of conduct and forced by the profession
5. Suitable remuneration
Law, medicine and accounting immediately come to mind as professions because they satisfy all the five conditions of professions listed above.
Management may also be regarded as a profession because it needs these characteristics as follows:
1. A Body of Knowledge:
During the last fifty years there has been a constant and steady growth of management techniques, principles and skills. Today, there is a large and fairy specific literature about the theory of management and organization. There have been a large number of contributors to theory of management.
Further, the process of management can be thought of as a distinct, separate and identifiable activity involving such functions as planning, organizing, motivating, communicating and controlling. As such, the job of a manager is different from any other types of work. So, it satisfies the first test for being a profession.
2. Formal Teaching:
The organized body of knowledge should be formally communicated to the new entrants in the profession. Management too satisfies this condition. There is certainly a vigorous programme of formal education for management in existence. Specialized under graduate degree programme are offered in almost all developed and developing countries. Business education is being given to priority now a day’s everywhere because MBA are among the top income earners these days.
Schools of business Administration in the USA, Institutes of management in the UK, India and so on. Various training programmes, specialized short courses and executive development programmes are examples of the formal teaching methods of business management principles.
3. A Representative Association or Body of Members:
The third feature of a profession is the existence of a representative body of members of the profession. This condition is also met by management. There are many professional organizations in the field of management not only in USA and UK but also in India also. All India Management Association is the name of such a body in India.
4. Ethical Standards of Conduct and Forced by the Profession:
A profession must possess some ethical standards of conduct for its members. For example, in India, the institute of chartered accountant of India provides for such code of ethics and it is necessary for each manager to follow it. Any violation of this code of conduct makes a member liable for punishment from the side of institute.
But, there are no widely accepted standards or enforced ethical code of conduct in the field of management. The business leaders and enlightened managers speak themselves about their social responsibility but this all is voluntary. So management definitely does not satisfy this fourth feature of a profession since it does not have any code of conduct introduced by a representative association.
5. Suitable Remuneration:
The last characteristics of a profession are the provision for payment of suitable fee or remuneration to its members for their services. Sometimes the amounts of their fees for various services are also fixed either by association or by government. But, however the pay of managers is generally based on their contribution to their organizations or it is a bargained salary.
The Government of India has imposed certain guidelines for the maximum and minimum limits of managerial remuneration. But this is not according to their services. It is based on income and profit of the company concerned. So, this condition is also not satisfied fully.
Now, from the above discussion, we can positively conclude that management does have some of the characteristics of profession since it has a body of knowledge which may be formally taught to the new entrants in the profession. There are various institutions and associations working for the causes of management so, in some respects, management qualify as a profession while in some respects it lacks the profession ship.
But, now-a-days, it is treated as a separate and distinguished profession and a large number of new graduates are being attracted to this field. In U.S.A., out of seven, there is one student getting the business education. Though in India ratio is not so high but trends are quite encouraging.
Justification of Professionalization:
There are two sets of arguments for professionalizing management, these are described below:
i. Arguments in Favour of Professional Management:
Professional Management offers the following benefits:
1. In the competitive environment of today both at the National and international levels, only professionally qualified managers can face competition. In order to, therefore, survive in the globally dynamic environment, it is necessary that managers are professionally qualified and trained. Non-professional or family managers may not be able to carry their companies successfully for too long.
2. Professional managers will not only maximize firm’s profits but also its image amongst stakeholders (creditors, Government suppliers, competitions etc.) in the society, national and international markets.
3. Professional managers will follow a specific code of ethics. Likelihood of malpractices like speculation, misrepresentation of information, promotion of vested interests at the cost of stakeholders’ interests will be reduced.
4. Professional managers will undoubtedly improve the working of business enterprises and make them more productive. Business firms can be better managed by professional managers than nonprofessional ones.
ii. Arguments against Professional Management:
The following arguments are offered against professionalization of management:
1. It is not rare to find practicing managers who are successful despite not being professionally qualified. Professionalization of management will take away the chance from such individuals to manage the business enterprises successfully, unless they acquire a professional degree. Professionalization may not, thus, prove to be effective in case of enterprises which are otherwise being managed so well. Acquiring a formal degree, in such cases, may, in fact be burdensome for managers.
2. Managers deal with human beings whose behaviour cannot be accurately predicted. Most highly qualified managers may not be able to perform better than non-professional managers. Managers should be skilled in behavioral and social sciences rather than acquiring professional expertise. More than a profession, thus, management is the art of profession. Management is the art of practicing managerial principles and theories.
Answer 5. Nature of Management:
The concept of management is very old. Therefore, different views have been expressed about its nature by different authorities.
The main viewpoints about the nature of management are as follows:
(1) Management as an Inborn Quality:
Prior to 1880 there has been a leading concept that management is an inborn quality. People believed that it was not necessary to study any organised body of management concepts as managers are born not made. Some people are so efficient and talented since their birth that they lead and get success in the field of business. But, this concept has been deleted by the new developments.
(2) Management as Social Science:
In describing the nature of management eminent authors of management are of this opinion that it is a social science. It is supposed to be the Behavioural Science in exact nature. Its principles and theories are situation bound.
Despite the fact that a large number of theories and principles or management have been established, their applicability may not necessarily lead to the same result. The process of management in very much related with the behaviour of people at work and their behaviour cannot be predicted in an exact manner.
So the limitations of Social Science are there with science of management. But with the introduction of quantitative tools in the field of decision-making, management is growing as a science. It has an organised body of knowledge having its others nature. So it can be said that management in a social science having its own approach and dynamics in different work situations.
(3) Management in Nature is the Work Done through and with People:
It is concerned with the exercise of the know-how for the effective accomplishment of desired results. As the process of managing is a fine art, it is concerned with application of the principles keeping in view the real life situations. The same process is followed in a repetitive manner and the practice is moulded according to the experience after applying the set body of knowledge. Management is also creative in nature.
It develops new situations, new design and new system needed for further improvement. Every manager has his individual approach and technique in solving problems. Therefore, somebody has very aptly said that “Business in the oldest of the arts, youngest of the sciences.”
(4) Management in ‘as a Profession in Nature:
It satisfies all the conditions of a profession. It has a well-defined body of knowledge. It requires formal training and it is being provided to new entrants. It has various representative bodies and the entrants are joining it as a career with the aim of serving the society not for money making alone,
(5) Management is a Universal Process in Nature:
The principles and techniques of management are not applicable to only business but they have universal application. They can be applied to social, religious, charitable and non-profit organisations. As the essence of management is integration of human and other resources in a manner that it leads to effective performance. And this aim and process in universal management seeks to harmonise the individual efforts with organisational goals.
(6) Management is Relative in Nature and Not Absolute in Principles:
Management principles are relative in nature, it is not absolute and they should be applied according to the need of the organisation. Each organisation may be different from others. The difference may exist because of time, place, socio-cultural factors etc. However, individual working within the same organisation may also differ thus, a particular management principle has different strength in different conditions, Therefore, principles of management should of applied in the of prevailing conditions.
Thus, the nature of management suggests that it is a multidisciplinary phenomenon; its principles are flexible, relative and not-absolute. It is both science and art, it can be taken as a profession and finally it is universal.
Answer 6. Nature of Management:
The concept of management is very old. Therefore, different views have been expressed about its nature by different authorities.
The main viewpoints about the nature of management are as follows:
(1) Management as an Inborn Quality:
Prior to 1880 there has been a leading concept that management is an inborn quality. People believed that it was not necessary to study any organised body of management concepts as managers are born not made. Some people are so efficient and talented since their birth that they lead and get success in the field of business. But, this concept has been deleted by the new developments.
(2) Management as Social Science:
In describing the nature of management eminent authors of management are of this opinion that it is a social science. It is supposed to be the Behavioural Science in exact nature. Its principles and theories are situation bound.
Despite the fact that a large number of theories and principles or management have been established, their applicability may not necessarily lead to the same result. The process of management in very much related with the behaviour of people at work and their behaviour cannot be predicted in an exact manner.
So the limitations of Social Science are there with science of management. But with the introduction of quantitative tools in the field of decision-making, management is growing as a science. It has an organised body of knowledge having its others nature. So it can be said that management in a social science having its own approach and dynamics in different work situations.
(3) Management in Nature is the Work Done through and with People:
It is concerned with the exercise of the know-how for the effective accomplishment of desired results. As the process of managing is a fine art, it is concerned with application of the principles keeping in view the real life situations. The same process is followed in a repetitive manner and the practice is moulded according to the experience after applying the set body of knowledge. Management is also creative in nature.
It develops new situations, new design and new system needed for further improvement. Every manager has his individual approach and technique in solving problems. Therefore, somebody has very aptly said that “Business in the oldest of the arts, youngest of the sciences.”
(4) Management in ‘as a Profession in Nature:
It satisfies all the conditions of a profession. It has a well-defined body of knowledge. It requires formal training and it is being provided to new entrants. It has various representative bodies and the entrants are joining it as a career with the aim of serving the society not for money making alone,
(5) Management is a Universal Process in Nature:
The principles and techniques of management are not applicable to only business but they have universal application. They can be applied to social, religious, charitable and non-profit organisations. As the essence of management is integration of human and other resources in a manner that it leads to effective performance. And this aim and process in universal management seeks to harmonise the individual efforts with organisational goals.
(6) Management is Relative in Nature and Not Absolute in Principles:
Management principles are relative in nature, it is not absolute and they should be applied according to the need of the organisation. Each organisation may be different from others. The difference may exist because of time, place, socio-cultural factors etc. However, individual working within the same organisation may also differ thus, a particular management principle has different strength in different conditions, Therefore, principles of management should of applied in the of prevailing conditions.
Thus, the nature of management suggests that it is a multidisciplinary phenomenon; its principles are flexible, relative and not-absolute. It is both science and art, it can be taken as a profession and finally it is universal.
Answer 7. Nature of Management:
Management is a Science or an Art?
The practice of management is as old as human civilization. Much of the progress of mankind may be attributed to the effective management of resources. The study of management in a systematic way is only of recent origin. Management is often described as “oldest of the arts and youngest of the sciences”.
Management as Science:
To gain a correct perspective as to what management is, let us examine the exact nature of management – whether it is a science or an art. An understanding, therefore, of the exact nature of science as well as art may help in resolving this problem.
Any branch of knowledge to be considered a science, (like the ones we have – physics, chemistry, engineering, etc.) should fulfil the following conditions:
I. The existence of a systematic body of knowledge encompassing an array of principles;
II. The principles have to be evolved on the basis of constant enquiry and observation;
III. The principles must explain a phenomenon by establishing cause-effect relationship;
IV. The principles must be universally applicable.
Looked at from this angle, management fulfills the above criterion and hence is considered as a science.
Art involves the achievement of desired and concrete results through the practical application of theoretical knowledge and skills. Art refers to the ‘know-how’ – the ways of doing things. ‘Practice makes a man perfect’, constant practice contributes for the formation and sharpening of the skills. Science and art are-the two sides of a coin.
Effective practice of any art requires a thorough understanding of the science underlying it. Thus, science and art are not mutually exclusive, but are complementary to each other. With a sound knowledge and the necessary skills to use such knowledge, executives have a better chance to succeed. Therefore, it may be concluded that management is both a science and an art.
Management as a Profession:
It is the era of professionalism. Therefore, it is appropriate to know whether management is a profession. A profession is an organized body of specialized knowledge requiring minimum educational qualifications or training represented by an association which has its own code of conduct, so as to be able to serve other.
McFarland gives the following characteristics of a profession:
(a) Existence of an organized and systematic body of knowledge.
(b) Formalized methods of acquiring knowledge and skills;
(c) Existence of an apex level body with professionalisation as its goal;
(d) Existence of an ethical code to regulate the behaviour of the members of the profession;
(e) Charging of fees based on service; and
(f) A concern for social responsibilities.
An examination of management as a profession reveals that unlike medicine or law, it has to go a long way to have a universally acceptable norm of behaviour.
(i) There is no uniform code of conduct that governs the behaviour of managers.
(ii) All India Management Association (AIMA) provides only guidelines and does not have any controlling power.
(iii) There is no uniform code of ethics for managers to function.
(iv) While making decisions, the larger interests of the society must be given top priority rather than short- term temptations.
It must, however, be remembered that unlike the professions like engineering, medicine, law, accountancy, etc., the entry to management positions is not restricted to individuals with a special degree. That is, one need not necessarily possess M.B.A or any other management degree or diploma to practice management.
To quote Peter Drucker, “no greater damage could be done to an economy or to any society than to attempt to professionalise management by licensing managers, for instance, or by limiting access to management to people with a special academic degree”.
Professionalisation of Management in India:
In the last few years, management as a profession has gained a momentum in India. The awareness about the contributions of professional managers has been increasing. Consequently, there has been a manifold increase in the number of institutes offering MBA and related diploma courses resulting in a phenomenal increase in the number of students seeking admission into the management programmes.
Interestingly, the awareness of the society of the importance of professional education for the management of various sectors also is growing. For instance, the specialized programmes to cater to the specific needs of the sectors like, Hotel and Tourism Industry, Transport, Health care, Foreign trade, etc. is the clear evidence in hand.