Interrelationship Between Management Functions

UNIVERSALITY OF MANAGEMENT

The concept of universality of management suggests that managerial knowledge may be transferred from one country to another and from one firm to another within the same country. In other words, the concepts and principles of management have universal application. The universality of management has two connotations as follows:

1. Management principle can be successfully applied to different kinds of organizations. In other words, they are applicable to business enterprises, clubs, hospitals, and educational institutions, religious and political organization.
2. Management principles are applicable in different economic systems of the world. They have utility in America, England, India and every other country where inputs are to be converted into outputs.

There have been conflicting views on the universal application of management concepts and principles. Authors like Fayol, Taylor, James Lundy, Louis A Allen, Dalton E. McFarland and Koontz and O’Donnell advocate that management is universal. But there are many management experts who do not subscribe to the concepts of universally of management. They include Ernest Dale, Drucker, W. Oberg, Joan Woodward and others.

Arguments in Favour of Universality of Management

The arguments in favour of the universality concept are discussed below:

1. Emphasis on Managerial Functions. The supporters of universality concept argue that as a manager, one must carry out all the functions of management, namely, planning, organizing, staffing, directing and control. As a result, the principles of management will be useful to all managers, notwithstanding their position in the organization, culture, or nature of the organization. To quote Koontz and O’ Donnel, “As a manager each must, at one time or another, carry out all the duties characteristic of managers. This is the principle of universality of managerial functions.” Thus, the principles of management apply to all managers irrespective of their level of the nature of job.

2. Distinction between Fundamentals and Techniques. Management fundamentals, theory and principles should be differentiated from managerial techniques or approaches. Managerial techniques and approaches may differ from culture to culture and from country to country. But management fundamentals have universal application. Koontz and O’ Donnel feel that those who claim that management philosophy is not universal take management philosophy as attitudes of managers towards various elements of the organization.

The application of management fundamentals may vary in different situations, but not the fundamentals themselves. The principles, concepts and skills of management are universal, only practices change. In practical life, managers shift from one organization to another. Such shifts illustrate that there are some common principles and skills of management at work which are applicable to all organizations.

3. Common Problems of Effective Use of Inputs. Though objectives differ from organization to organization, but all organizations face the problem of allocating scarce resources like time, human efforts, capital, etc., to the purpose which are not few. Such allocation requires certain common principles, concepts and skills of management. Managers shift from one company to another, from one industry to another. Such shifts indicate that there are general skills and principles of management at work. It is obvious that principles, concepts and skills are universal, only practice change. Mcfarland argues that whatever the administrative and analytical skills are transferable according to Drucker, they fall within the meaning of the term ‘Management’

Management know-how refers to the effective application of knowledge; it includes knowledge of management fundamentals and the art of applying it in a given situation. It is the art of applying management fundamentals which will vary in different cultures and not the management fundamentals (basic concepts, theory and principles). The distinction between management fundamentals and management practice (i.e., the application of management fundaments to a given situation) must be clearly noted.