BUMA 020

Management Science

Management It is a process involving planning, organizing, staffing, directing and controlling

human efforts to achieve stated objectives in an organization.
Profession It refers to a vocation or a branch of advanced learning.
Production management This functional area refers to the creation of utilities by converting raw material into
final product by various scientific methods and regulations.
Marketing management This functional area involves distribution of the product to the buyers.
Financial and accounting This functional area deals with managerial activities related to procurement and
management utilization of funds for business purposes.
Personnel management This functional area is the phase of management which deals with effective use and
control of manpower.
Plant layout and location This sub area deals with designing of plant layout, deciding about the plant location
for various products and providing various plant utilities.
Production planning This sub area is where managers have to plan about various production policies and
production methods.
Material management This sub area deals with purchase, storage, issue and control of the material
required for the production department.
Research and This sub area deals with refinements in existing product lines or developing a new
Development product are the major activities.
Quality Control This sub area works for production of quality products by doing various tests which
ensure customer satisfaction.
Advertising This sub area deals with advertising of products, introducing new products in the
market by various means and encouraging the customer to buy these products.
Sales management This sub area management deals with fixation of prices, actual transfer of products
to the customer after fulfilling certain formalities and after sales services.
Market research This sub area involves the collection of data related to product demand and
performance by research and analysis of the market.
Financial accounting This sub area relates to record keeping of various financial transactions, their
classification and preparation of financial statements to show the financial position of
the organization.
Management accounting This sub area deals with analysis and interpretation of financial records so that
management can make certain decisions on investment plans, return to investors
and dividend policy.
Taxation This sub area deals with various direct and indirect taxes which an organization has
to pay.
Costing This sub area deals with recording of costs, their classification, and analysis and
cost control.
Personnel planning This sub area deals with preparation inventory of available manpower and actual
requirement of workers in organization.
Recruitment and selection This sub area deals with hiring and employing human beings for various positions as
required.
Training and development This sub area deals with the process of making the employees more efficient and
effective by arranging training programs.
Wage administration This sub area deals in Job evaluation, merit rating of Jobs and making wage and
incentive policy for employees.
Industrial relation This sub area deals with maintenance of overall employee relations.
Management Function This refers to the fundamental activities that managers perform in any organization
to achieve its objectives efficiently and effectively.
Planning involves setting goals, objectives, and strategies for the organization and
determining the best course of action to achieve them
Organizing It involves arranging and structuring the organization's resources
Staffing This involves manning the various positions created by the organizing process
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BUMA 020: Management Science
Reference: MALLA REDDY COLLEGE OF ENGINEERING AND TECHNOLOGY (MRCET)
 BUMA 020
Management Science

Directing involves motivating, guiding, and supervising employees to achieve the

organization's objectives
Controlling involves monitoring, measuring, and evaluating the organization's performance
against predetermined goals and standards
Top level of management It is the ultimate source of authority and it manages goals and policies for an
enterprise.
Middle level of They are responsible to the top management for the functioning of their department.
management
Lower level of management It is also known as supervisory/operative level of management.
Henry Fayol He is a French Industrialist and the father of modern operational management
theory.
Official authority It is derived from the manager’s position
Personal authority It is derived from personal qualities.
Responsibility This arises out of assignment of an activity.
Discipline It is obedience, application, behavior and outward mark of respect shown by
employees.
Unity of command This means that a person should get orders from only one superior
Unity of direction This provides better coordination among various activities to be undertaken by an
organization
Order It is a principle relating to the arrangement of things and people.
Equity It is the combination of justice and kindness
Initiative It is concerned with thinking out and executing a plan.
Esprit de corps The principle of union is strength and extension of unity of command for establishing
teamwork.
Hawthorne effect It is a phenomenon where individuals change their behavior when they know they
are being observed.
Herzberg’s two-factor This theory outlines that humans are motivated by two things.
theory
System It is a set of interrelated but separate parts working towards a common purpose.
Contingency Theory This theory holds that management techniques should be dependent upon the
circumstances.
Leadership It is the process of influencing the behavior of others to work willingly and
enthusiastically for achieving predetermined goals.
Leadership style Are the patterns of behavior which a leader adopts in influencing the behavior of his
subordinates.
Autocratic Leadership This is where the leader makes decisions without consulting with the team.
Democratic Leadership This kind of leadership style involves the leader including team members in the
decision-making process.
Laissez-Faire Leadership This is where the leader provides minimal guidance to the team and allows them to
make their own decisions.
Transformational This kind of leader often leads by example and empower their team members to
Leadership reach their full potential.
Transactional Leadership This kind of leadership style emphasizes structure and efficiency but may not foster
innovation or long-term growth.
Servant Leadership This kind of leadership style prioritizes the needs of their team members above their
own.
Charismatic Leadership These leaders have a magnetic personality that inspires followership.
Situational Leadership This leadership style involves adapting leadership behavior based on the situation
and the needs of the team.

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BUMA 020: Management Science
Reference: MALLA REDDY COLLEGE OF ENGINEERING AND TECHNOLOGY (MRCET)