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MGT 103

Foundation of Business Management

TU BITM · Semester 1 · BITM curriculum and programme regulation

Requirement
required
Credits
3
Study Guide
6 units available

Chapter notes

Authoritative study guide across 6 syllabus units

Open a unit to read its study notes.

Unit 1: Introduction to Business and Management· 10 LHs· ~12 marks

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Part 1: Core Concepts (2 Marks)

  • Management: The systematic process of planning, organizing, leading, and controlling organizational resources (human, financial, physical, information) to achieve objectives effectively and efficiently.
  • Efficiency vs. Effectiveness: Efficiency means doing things right (minimizing resource waste, OutputsInputs\frac{\text{Outputs}}{\text{Inputs}}); effectiveness means doing the right things (achieving stated organizational goals).
  • Fayol’s 14 Principles of Management: Foundational administrative doctrines formulated by Henri Fayol, including Division of Work, Unity of Command, Unity of Direction, and Scalar Chain.
  • Hawthorne Effect: Elton Mayo’s finding that employee productivity increases primarily due to social attention, group dynamics, and psychological recognition rather than physical working conditions alone.

Part 2: Structural Frameworks (10 Marks)

Henry Mintzberg’s 10 Managerial Roles

Category Managerial Role Primary Focus & Behavioral Activities
Interpersonal<br>(Formal Authority & Relationships) 1. Figurehead Symbolic head; performs routine legal, ceremonial, and social duties.
2. Leader Motivates, directs, trains, and counsels subordinates to align goals.
3. Liaison Cultivates external networks of industry and peer contacts.
Informational<br>(Nerve Center for Data Flow) 4. Monitor Continuously scans internal metrics and external environments.
5. Disseminator Transmits pertinent information to internal subordinates and peers.
6. Spokesperson Delivers official messages to external stakeholders and media.
Decisional<br>(Strategy Execution & Action) 7. Entrepreneur Identifies opportunities and initiates innovation and change projects.
8. Disturbance Handler Resolves unexpected operational crises, strikes, and disruptions.
9. Resource Allocator Distributes financial, equipment, and human resources strategically.
10. Negotiator Represents organizational interests in key contractual negotiations.

Part 3: Distinction Tables

Basis of Comparison Scientific Management (F.W. Taylor) Administrative Management (Henri Fayol)
Perspective Level Shop-floor, bottom-up operational level Top-tier executive, top-down administrative level
Primary Focus Standardizing worker tasks, time-and-motion studies Universal organizational management principles and functions
Core Mechanism Differential piece-rate wage incentive systems 14 administrative principles (Unity of Command, Scalar Chain)
View of Human Nature Economic man driven solely by monetary compensation Administrative contributor functioning in structured hierarchy

Part 4: Worked Problems & Exam Traps

Analysis of Classical Theory Application in IT Management

  1. Taylor’s Relevance: Task standardization in agile development sprints, story point estimation, automated code linters.
  2. Fayol’s Relevance: Clear project escalation paths, unity of command (one developer reporting to one product owner).
  3. Contingency Synthesis: Software development requires adaptive agile frameworks over rigid mechanical bureaucracy.

TU Exam Trap: Do not confuse Unity of Command with Unity of Direction. Unity of Command mandates that each subordinate receives orders from one and only one superior; Unity of Direction mandates that all organizational activities with the same objective must have one plan and one leader.