CSEET · Business Laws and Management

Introduction to Management: formula sheet

Full chapter guide

Key formulas

Definition in one line: Management = process of planning, organising, staffing, directing and controlling resources to achieve goals; Use these five functions in any written or MCQ answer on meaning.
Effectiveness vs efficiency: Effectiveness = doing the right task (goal achieved); Efficiency = doing the task right (least cost); Management aims at both. Efficiency is about means, effectiveness is about ends.
Art, science, profession verdict: Management = art + inexact (flexible) science + emerging profession; Do not say it is fully any one of the three.
Features checklist: Goal-oriented, pervasive, multi-dimensional, continuous, group activity, dynamic, intangible; Learn the list in this order for quick recall.
Three groups of objectives: Organisational (survival, profit, growth) | Social (society, environment, ethics) | Personal (employee needs); Decide whose benefit the objective serves: the firm, society or the employee.
Top level of management: Board of Directors, Chairman, MD, CEO → determines objectives and policies, long-term planning; Keywords: policy, overall, strategic, accountable to owners or shareholders.
Middle level of management: Departmental heads, divisional managers → implement policies, coordinate departments, link top and lower levels; Keywords: departmental plans, interpreting policy, coordination, motivating supervisors.
Lower level of management: Supervisors, foremen, section officers → supervise workers, day-to-day operations, maintain quality and discipline; Keywords: workers, daily targets, direct contact, supervision.
Direction of flow: Top: policy → Middle: implementation → Lower: execution; A one-line way to place any function in the right level.
Usual sequence of functions: Planning → Organising → Staffing → Directing → Controlling; Coordination runs through all of them. Use this order to spot which function comes before or after another.
Planning vs controlling: Controlling = Actual performance compared with the standard set in planning; Planning looks forward. Controlling looks back to check. Both are linked, so they are called twin functions.
Coordination: Coordination = Unity of action through all other functions; Called the essence of management. It is a continuous process, not a one-time act.
Management vs administration (simple view): Administration = determines policy (top level); Management = executes policy (middle and lower levels); This is the classical view. Some authors treat the two terms as the same. Answer as the question's wording suggests.
Taylor's principles of scientific management: Science, not rule of thumb | Harmony, not discord | Cooperation, not individualism | Maximum output, not restricted output | Development of each person to his greatest efficiency; These are the five principles usually listed for Taylor. Remember the pattern: 'X, not Y'.
Taylor's techniques: Time study | Motion study | Fatigue study | Standardisation | Differential piece rate | Functional foremanship | Separation of planning from doing; Differential piece rate pays a higher rate to a worker who meets or beats the standard and a lower rate to one who does not. Mental revolution is the underlying philosophy of scientific management (a change in attitude of workers and managers towards each other), not a technique. Textbooks differ on how they group these items, so follow your study material.
Fayol's 14 principles: 1 Division of work | 2 Authority and responsibility | 3 Discipline | 4 Unity of command | 5 Unity of direction | 6 Subordination of individual interest to general interest | 7 Remuneration | 8 Centralisation and decentralisation | 9 Scalar chain | 10 Order | 11 Equity | 12 Stability of tenure | 13 Initiative | 14 Esprit de corps; Learn them in this order. Fayol did not divide them into groups. If you split the list into chunks of three or four, treat that only as your own memory aid and not as a classification.
Fayol's functions of management: Planning, Organising, Commanding, Coordinating, Controlling; Later writers merged commanding into directing and treat coordination as the essence of management.
Fayol vs Taylor in one line: Taylor = shop floor, scientific, operational efficiency | Fayol = whole organisation, administrative, general management; Use this line to separate look-alike options in MCQs.
MBO process (typical order): Set organisational goals → Set individual/departmental goals → Participative agreement on targets → Action plans → Monitoring and feedback → Performance appraisal; Textbooks vary slightly in wording. The logic stays the same: goals first, review last, then the cycle repeats.
Decision-making process (typical order): Identify the problem → Gather information and analyse → Develop alternatives → Evaluate alternatives → Select the best → Implement → Follow up and evaluate; Identifying the problem always comes first. Follow-up comes last.
Good objectives (SMART): Specific, Measurable, Achievable, Realistic, Time-bound; Some books use Relevant for R. Use the version given in your study material.
Decision types by level: Strategic = top level; Tactical = middle level; Operational = lower level; A common matching question in MCQs.
Programmed vs non-programmed: Programmed = routine, rule-based; Non-programmed = new, unique, needs judgement; Programmed decisions suit lower levels. Non-programmed ones are more common at top levels.
Three managerial skills: Technical + Human + Conceptual; Technical = job know-how; Human = dealing with people; Conceptual = big-picture thinking.
Skill by level: Top: Conceptual ↑ | Middle: Human (balanced) | Lower: Technical ↑; Human skill is needed at all levels. Conceptual need rises as you go up; technical need falls.
Mintzberg's interpersonal roles (3): Figurehead, Leader, Liaison; Arise from the manager's authority and position; they deal with people.
Mintzberg's informational roles (3): Monitor, Disseminator, Spokesperson; Receiving, passing on and sharing information inside and outside.
Mintzberg's decisional roles (4): Entrepreneur, Disturbance Handler, Resource Allocator, Negotiator; Making choices and decisions. Total roles = 3 + 3 + 4 = 10.

Quick revision

Management is the process of getting things done through people to achieve organisational goals.
Management has features of both science and art, and it is also treated as a profession by many writers.
Levels of management: top (policy and strategy), middle (implementation and coordination), lower (supervision of workers).
Top management mostly needs conceptual skills; lower management mostly needs technical skills; human skills matter at every level.
The functions are planning, organising, staffing, directing and controlling.
Planning comes first and looks ahead; controlling compares actual results with plans and corrects deviations.
Coordination is often described as the essence of management because it ties all functions together.
Scientific management is linked with F. W. Taylor; administrative theory and the fourteen principles with Henri Fayol.
Management by Objectives sets goals jointly by superiors and subordinates and reviews results against them.
Decision making means choosing the best option from available alternatives.
Mintzberg described managerial work through interpersonal, informational and decisional roles.

Common mistakes

Saying management is only an art, only a science or only a profession. Fix: Write the verdict as art, inexact science and emerging profession, with one reason each.
Treating efficiency and effectiveness as the same. Fix: Remember: effectiveness is the goal achieved; efficiency is the cost and effort used.
Placing profit under social objectives. Fix: Profit is earned by the firm and keeps it going, so it is an organisational objective.
Treating the middle level as the one that frames policy. Fix: Policy making is the top level's job. Middle managers interpret and implement policy for their departments.
Confusing staffing with directing Fix: Staffing is about getting people into jobs (recruitment, selection, training). Directing is about guiding them once they are working (motivation, supervision, leadership).
Treating controlling as only fault-finding Fix: Controlling means comparing results with standards and taking corrective action. It also helps to improve future plans.
Confusing unity of command with unity of direction. Fix: Unity of command: one employee, one boss. Unity of direction: one group of activities with the same objective, one plan and one head.
Saying Taylor gave 14 principles or Fayol gave time and motion study. Fix: Attach a label: Taylor = scientific management, with principles and techniques for shop-floor efficiency; Fayol = 14 principles for all managers.
Thinking MBO means the boss sets targets and the employee follows. Fix: Remember that participation is the core of MBO. Goals are agreed jointly.
Placing performance review before action or goal setting in the MBO steps. Fix: Ask what must exist before you can review. Goals and action come first.

Exam tips

Paper 4 Part B has 40 one-mark MCQs. This topic gives easy marks, so do not lose them on wording traps.
Learn the one-word link for each feature, for example pervasive means every organisation.
Watch for absolute words like 'only', 'purely' and 'always' in options about art, science or profession.
Keep the three-part verdict ready: art, inexact science, emerging profession.
Use the 15 minutes of reading time to mark the management questions you can answer at once.
Learn one keyword for each level and each objective group. Most MCQs can be solved from keywords alone.
Expect option sets where one item from each group is mixed in. Check whose benefit the item serves.
For a written answer, give a heading, a one-line definition, points with examples, and a short conclusion.