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Management questions are largely theory- and name-based: organisation types, management thinkers and theories, leadership and communication, entrepreneurship, motivation theories, HRM functions, business plans, MIS and technology management.
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Organization and Its Types • An organization is a structured group of people working together towards common goals.
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Formal organisation is deliberately designed (charts, rules); informal arises from social relations (grapevine). • Key concepts: authority, responsibility, accountability, delegation, span of control (number of subordinates per manager), unity of command (one boss), scalar chain (line of authority), centralisation vs decentralisation. • Forms of business ownership: sole proprietorship, partnership, joint-stock company (private/public limited), cooperative, public enterprise (state-owned).
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Structure Features Merit / demerit Line (military/scalar) Direct vertical authority Simple, quick decisions, unity of command / overloads executives, no specialists Line & staff Line managers + advisory staff specialists Expert advice / line-staff conflict Functional (F.W.
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Taylor) Work divided by specialist function;
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8 functional foremen Specialisation / violates unity of command Divisional Divisions by product, region or customer Accountability / duplication of resources Matrix Functional + project;
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DUAL authority (two bosses) Flexible for projects / conflict, confusion Project Temporary team for a project Focus / disbands after project Committee Group decision-making Pooled judgement / slow, diluted responsibility Management Functions and Modern Management Theory • Fayol's functions:
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Planning, Organising, Commanding, Coordinating, Controlling.
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Planning, Organising, Staffing, Directing, Coordinating, Reporting, Budgeting.
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Planning is the primary function. • Levels: top (strategic), middle (tactical), lower/supervisory (operational).
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Katz's skills: technical (most at lower level), human (all levels), conceptual (most at top level). • Fayol's 14 principles: division of work, authority & responsibility, discipline, unity of command, unity of direction, subordination of individual interest, remuneration, centralisation, scalar chain, order, equity, stability of tenure, initiative, esprit de corps.
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School / theory Proponent Core idea Scientific management F.
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Taylor (father of scientific management) Time & motion study, standardisation, differential piece-rate, functional foremanship Motion study Frank & Lillian Gilbreth Therbligs (17 basic motions) Gantt chart Henry Gantt Bar chart for scheduling; task-and-bonus plan Administrative management Henri Fayol (father of modern management) 14 principles; functions of management Bureaucracy Max Weber Hierarchy, rules, impersonality, merit Human relations Elton Mayo — Hawthorne experiments Social and psychological factors affect productivity School / theory Proponent Core idea Systems approach Bertalanffy, Katz & Kahn Organisation as open system: input → process → output with feedback Contingency / situational Fiedler, Lawrence & Lorsch No one best way — 'it depends' on situation MBO Peter Drucker Management by Objectives: jointly set, measurable goals TQM Deming, Juran, Crosby Continuous improvement (PDCA), customer focus Theory Z William Ouchi Japanese-style: lifetime employment, collective decisions Leadership and Communication • Leadership styles: autocratic (leader decides), democratic/participative, laissez-faire (free rein), paternalistic; transformational (inspires change) vs transactional (reward/punishment exchange). • Theories: trait theory; behavioural (Ohio State — initiating structure & consideration;
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Managerial Grid (Blake & Mouton:
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9,1 authority-compliance;
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5,5 middle-of-the-road;
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9,9 team management — ideal);
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Fiedler's contingency (LPC scale);
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Hersey-Blanchard situational (telling, selling, participating, delegating);
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House's path-goal. • Communication process: sender → encoding → message/channel → decoding → receiver → feedback; noise disturbs any stage. • Formal channels: downward (orders), upward (reports, suggestions), horizontal/lateral (peers), diagonal.
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Informal channel: grapevine (fast, may distort). • Barriers: semantic (language), psychological (emotions, perception), organisational (hierarchy), physical (noise, distance).
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The 7 Cs: clear, concise, concrete, correct, coherent, complete, courteous.
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Entrepreneurship • Entrepreneur: a person who identifies opportunities, innovates, organises resources and bears risk.
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Joseph Schumpeter — entrepreneur as innovator, 'creative destruction'. • Types (Danhof): innovative, imitative (adoptive), Fabian (cautious, sceptical), drone (refuses change).
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Intrapreneur = entrepreneur within an existing organisation. • Traits: need for achievement (McClelland), risk-taking, creativity, vision, self-confidence, persistence. • Finance sources: own equity, bank loans, angel investors (early-stage individuals), venture capital (high-growth firms for equity), crowdfunding, government schemes.
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Motivation Theory Proponent Key idea Need hierarchy Abraham Maslow Physiological → Safety → Social → Esteem → Self-actualisation (highest) Two-factor Frederick Herzberg Hygiene factors (salary, policy, working conditions, security) prevent dissatisfaction;
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Motivators (achievement, recognition, work itself, responsibility, growth) motivate Theory X / Theory Y Douglas McGregor X: people dislike work, need control;
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Y: people are self-motivated and seek responsibility Need theory David McClelland Needs for achievement, affiliation and power ERG theory Clayton Alderfer Existence, Relatedness, Growth Expectancy theory Victor Vroom Motivation = Expectancy × Instrumentality × Valence Equity theory J.
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Stacy Adams People compare input/output ratio with others Goal-setting Edwin Locke Specific, challenging goals raise performance Reinforcement B.
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Skinner Behaviour shaped by consequences Human Resource Management (HRM) • Functions:
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HR planning → job analysis (job description = duties of the job; job specification = qualities required of the person) → recruitment → selection → placement → induction/orientation → training & development → performance appraisal → compensation → employee relations, safety & welfare → separation. • Recruitment is a positive process (attracts many applicants); selection is a negative process (rejects unsuitable ones).
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Sources: internal (promotion, transfer) and external (advertisement, campus, agencies). • Training = short-term, job-specific skills for operatives; development = long-term growth for managers.
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On-the-job: apprenticeship, job rotation, coaching; off-the-job: lectures, case study, simulation, vestibule training (replica of workplace). • Appraisal methods: rating scales, ranking, paired comparison, critical incident, MBO, 360° feedback (superiors, peers, subordinates, customers).
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Development of Business Plan • A business plan is a written document describing the business idea, market, operations and finances — used to guide the venture and attract investors/lenders. • Typical contents: executive summary (written last, placed first), company description, market analysis, organisation & management, products/services, marketing & sales strategy, operations plan, financial plan (projected income statement, cash flow, balance sheet, break-even), funding request, appendix. • Feasibility study: technical, market, financial, economic, legal and environmental feasibility. • SWOT:
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Strengths & Weaknesses (internal), Opportunities & Threats (external).
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Political, Economic, Social, Technological, Legal, Environmental. • Break-even point (units) = Fixed cost ÷ (Selling price − Variable cost per unit).
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Contribution = SP − VC.
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Other tools: payback period, NPV, IRR, B/C ratio.
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Management Information System (MIS) • MIS is an integrated system of people, hardware, software, data and procedures that provides timely, accurate and relevant information for managerial decision-making. • Data = raw facts; information = processed, meaningful data.
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Good information is accurate, timely, relevant, complete and concise.
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System Level / purpose TPS (Transaction Processing System) Operational level — records routine transactions (payroll, billing) MIS Middle management — periodic structured reports for control DSS (Decision Support System) Semi-structured/unstructured decisions; 'what-if' analysis EIS / ESS (Executive) Top management — strategic, summarised dashboards ERP Integrates all departments (finance, HR, production, sales) on a common database Expert system Uses knowledge base and inference engine to mimic an expert Technology Management • Technology management = planning, developing, acquiring and using technology to achieve strategic objectives.
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Includes R&D;, technology selection, transfer, absorption and assessment. • Technology transfer: vertical (research → commercial product) and horizontal (from one organisation/country to another).
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Modes: licensing, joint venture, FDI, turnkey projects, purchase of equipment. • Technology life cycle (S-curve): emergence → growth → maturity → decline.
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Incremental vs radical/disruptive innovation (Clayton Christensen). • Diffusion of innovation (E.
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Rogers): innovators 2.5%, early adopters 13.5%, early majority 34%, late majority 34%, laggards 16%. • Technology forecasting:
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Delphi method (anonymous expert rounds), trend extrapolation, scenario analysis.
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IPR: patent (~20 years), copyright, trademark, industrial design, trade secret.
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Industrial Engineering Applications — Management in Practice • Section 1.6 is the management foundation of the whole Industrial Engineering syllabus: organisation structures and spans of control reappear in production organisation (Chapter 5), motivation and HRM in work design and ergonomics (Chapter 6), MIS in ERP and information systems (Chapters 8 and 10.4), and entrepreneurship and business plans in project appraisal (Chapter 10.2). • Scientific management (F.
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Taylor) — time study, standardisation of methods and tools, scientific selection and training, differential piece-rate, functional foremanship;
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Frank and Lillian Gilbreth — motion study and therbligs;
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Henry Gantt — Gantt chart and task-and-bonus plan;
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Henri Fayol — 14 principles and the functions of management (planning, organising, commanding/staffing, coordinating, controlling);
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Max Weber — bureaucracy;
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Elton Mayo — Hawthorne studies and the human-relations school; operations research/systems approach — modern quantitative management. • Organisation types: line, line-and-staff, functional, project, matrix (dual reporting — common in engineering projects), divisional; formal vs informal; span of control (wide → flat organisation, fewer levels; narrow → tall organisation). • Motivation:
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Maslow's hierarchy (physiological → safety → social → esteem → self-actualisation), Herzberg's two-factor theory (hygiene factors prevent dissatisfaction; motivators — achievement, recognition, responsibility, growth — create satisfaction), McGregor's Theory X and Y, Vroom's expectancy theory, McClelland's needs theory; financial and non-financial incentives, wage-incentive plans (Halsey, Rowan, Taylor differential piece-rate — Chapter 6). • Leadership and communication: autocratic, democratic/participative, laissez-faire styles; managerial grid; formal and informal communication channels and barriers. • HRM: manpower planning, recruitment and selection, training and development, performance appraisal, job evaluation and merit rating, wage and salary administration, industrial relations, trade unions and the Labour Act; industrial safety and welfare. • Entrepreneurship and business plan: identifying an opportunity, market survey, technical feasibility, financial plan (capital requirement, break-even, cash flow, NPV/IRR — Chapter 10.2), organisation and management plan, risk analysis; in Nepal, registration with the Office of Company Registrar or the Department of Industry/Cottage and Small Industries Office, PAN/VAT registration, environmental clearance (IEE/EIA) and industry classification under the Industrial Enterprises Act. • MIS and technology management: transaction processing → MIS → decision support and ERP; technology forecasting, selection, transfer, absorption and R&D management; automation and Industry 4.0 (IoT, data analytics).