The management paper consists of two papers, paper 1 and paper 2. The subject carries a total of 500 marks, with each paper allotted for 250 marks. Paper 1 focuses on areas like marketing, finance, organizational behaviour, HR etc. Paper 2 focuses on applying the principles, concepts and operations of management.
UPSC Management Syllabus for Optional (Paper-I)
I. Managerial Function
Concept and Foundations of Management, Evolution of Management Thoughts; Managerial Functions – Planning, Organizing, Controlling; Decision making; Role of Manager, Managerial skills; Entrepreneurship; Management of innovation ; Managing in a global environment, Flexible Systems Management; Social responsibility and managerial ethics; Process and customer or ientat ion; Managerial processes on direct and indirect value chain.
II. Organisational Behaviour and Design
Conceptual model of organization behaviour; The individual processes – personality, values and attitude, perception, motivation, learning and reinforcement, work stress and stress management; The dynamics of organizat ion behaviour – power and politics, conflict and negotiation, leadership process and styles, communication; The Organizational Processes – decision making, job design; Classical, Neoclassical and Contingency approaches to organizational design; Organizational theory and design – organizational culture, managing cultural diversity, learning organization ; organizational change and development ; Knowledge Based Enterpr ise – systems and processes; Networked and virtual organizations.
III. Human Resource Management
HR challenges; HRM functions; The future challenges of HRM; Strategic Management of human resources; Human resource planning; Job analysis; Job evaluation; Recruitment and selection; Training and development; Promotion and transfer; Performance management; Compensation management and benefits; Employee morale and productivity; Management of organizational climate and Industrial relations; Human resources accounting and audit; Human resource information system; International human resource management
IV. Accounting for Managers
Financial accounting – concept, importance and scope, generally accepted accounting principles, preparation of financial statements with special reference to analysis of a balance sheet and measurement of business income, inventory valuation and depreciation, financial statement analysis, fund flow analysis, the statement of cash flows; Management accounting – concept, need, importance and scope; Cost accounting – records and processes, cost ledger and control accounts, reconciliation and integration between financial and cost accounts; Overhead cost and control, Job and process costing, Budget and budgetary control, Performance budgeting, Zero-base budgeting, relevant costing and costing for decision-making, standard costting and variance analysis, marginal costing and absorption costing
V. Financial Management
Goals of finance function; Concepts of value and return; Valuation of bonds and shares; Management of working capital: Estimation and financing; Management of cash, receivables, inventory and current liabilities; Cost of capital; Capital budgeting; Financial and operating leverage; Design of capital structure: theories and practices; Shareholder value creation: dividend policy, corporate financial policy and strategy, management of corporate distress and restructuring strategy; Capital and money markets: institutions and instruments; Leasing, hire purchase and venture capital; Regulation of capital market; Risk and return: portfolio theory; CAPM; APT; Financial derivatives: option, futures, swap; Recent reforms in financial sector
VI. Marketing Management
Concept, evolution and scope; Marketing strategy formulation and components of marketing plan; Segmenting and targeting the market; Positioning and differentiating the market offering; Analyzing competition; Analyzing consumer markets; Industrial buyer behaviour; Market research; Product strategy; Pricing strategies; Designing and managing Marketing channels; Integrated marketing communications; Building customer satisfaction, Value and retention; Services and non-profit marketing; Ethics in marketing; Consumer protection; Internet marketing; Retail management; Customer relationship management; Concept of holistic marketing.
UPSC Management Syllabus for Optional (Paper-II)
I. Quantitative Techniques in Decision Making
Descriptive statistics – tabular, graphical and numerical methods, introduction to probability, discrete and continuous probability distributions, inferential statisticssampling distributions, central limit theorem, hypothesis testing for differences between means and proportions, inference about population variances, Chi-square and ANOVA, simple correlation and regression, time series and forecasting, decision theory, index numbers; Linear programmi n g – problem formulation,simplex method and graphical solution, sensitivity analysis.
II.Production and Operations Management
Fundamentals of operations management; Organizing for production; Aggregate production planning, capacity planning, plant design: process planning, plant size and scale of operations, Management of facilities; Line balancing; Equipment replacement and maintenance; Production control; Supply chain management – vendor evaluation and audit; Quality management; Statistical process control, Six Sigma; Flexibility and agility in manufacturing systems; World class manufacturing; Project management concepts, R&D management, Management of service operations; Role and importance of materials management, value analysis, make or buy decision; Inventory control, MRP; Waste management.
III. Management Information System
Conceptual foundations of information systems; Information theory; Information resource management; Types of information systems; Systems development – Overview of systems and design; System development management life-cycle, Designing for online and distributed environments; Implementation and control of project; Trends in information technology; Managing data resources – Organising data; DSS and RDBMS; Enterprise Resource Planning (ERP), Expert systems, e-Business architecture, e-Governance; Information systems planning, Flexibility in information systems; User involvement; Evaluation of information systems.
IV. Government Business Interface
State participation in business, Interactionbetween Government, Business and different Chambers of Commerce and Industry in India; Government’s policy with regard to Small Scale Industries; Government clearances for establishing a new enterprise; Public Distribution System; Government control over price and distribution; Consumer Protection Act (CPA) and The Role of voluntary organizations in protecting consumers’ rights; New Industrial Policy of the Government: liberalization, deregulation and privatisation; Indian planning system; Government policy concerning development of Backward areas/regions; The Responsibilities of the business as well as the Government to protect the environment; Corporate Governance; Cyber Laws.
V. Strategic Management
Business policy as a field of study; Nature and scope of strategic management, Strategic intent, vision, objectives and policies; Process of strategic planning and implementation; Environmental analysis and internal analysis; SWOT analysis; Tools and techniques for strategic analysis – Impact matrix: The experience curve, BCG matrix, GEC mode, Industry analysis, Concept of value chain; Strategic profile of a firm; Framework for analysing compet i t ion; Competitive advantage of a firm; Generic competitive strategies; Growth strategies – expansion, integration and diversification; Concept of core competence, Strategic flexibility; Reinventing strategy; Strategy and structure; Chief Executive and Board; Turnaround management; Management of strategic change; Strategic alliances, Mergers and Acquisitions; Strategy and corporate evolution in the Indian context.
VI. International Business
International Business Environment : Changing composition of trade in goods and services; India’s Foreign Trade: Policy and trends; Financing of International trade; Regional Economic Cooperation; FTAs; Internationalization of service firms; International production; Operation Management in International companies; International Taxation; Global competitiveness and technological developments; Global e-Business; Designing global organizational structure and control; Multicultural management; Global business strategy; Global marketing strategies; Export Management; Export- Import procedures; Joint Ventures; Foreign Investment: Foreign direct investment and foreign portfolio investment; Cross-border Mergers and Acquisitions; Foreign Exchange Risk Exposure Management; World Financial Markets and International Banking; External Debt Management; Country Risk Analysis
About management subject
Management is an art in itself that studies the science of managerial decision making, organizational strategies, concepts of governance, strategic operations, policy making and rules creation etc. In a much broader perspective, it is the controlled, organised and co-ordinated set of activities that help a company and its employees achieve a designated set of objectives that they primarily set out to achieve.
The growth and development of any company is achieved though proper management of its resources, manpower, assets, intellectual potential, finance etc.
How to prepare for Management paper in the IAS Mains exam
Let us first understand the nature of management paper in the IAS Mains exam. It is generally advised to approach this paper in the best logical way possible. Students with management degrees find it easy to understand the syllabus and can relate well, so it’s advisable to opt for the subject if there is prior knowledge in it.
The subject has a very extensive and detailed syllabus with too many topics and concepts to be understood. Once aspirants master the conceptual understanding of the subject, they can expect medium level of difficulty in the examination.
Most aspirants on the outset find it difficult to cover and complete the entire syllabus on time. That’s what makes this subject not-so-popular among many aspirants. Many concepts like HR, Marketing, Finance, Operations etc need a very broad knowledge base and systemic understanding out of the management degree theories.
So a person who is very confident and capable of giving a logical and point blank response to every question should definitely take up this subject as an optional.
After selecting the subject, the next obvious step is setting up the right approach to cover the syllabus, prepare you to answer questions and aim for better scores in the exam. To start with preparation, collecting the right and essential study materials and setting up the time table is important first and foremost.
MBA degree books give you the most required information for this particular subject. Before anything, it’s advisable to first begin with your MBA books and then after securing a strong hold on concepts and understanding set foot on other books and resources.
Very good and recommended power point presentations on management principles and details from scratch are available on the internet. Be choosy with what you select and choose resources wisely. Do not pile up too many things for studies. Be wise to choose something that is practically achievable.
Preparing and maintaining notes on whatever you study is a must. Create notes for revision. Keep track of what you study through a planner. Take time to get yourself familiarised with the conceptual and theoretical part of the paper first. Prepare short notes on as many topics that you come across.
The thing in management paper is the large number of topics lined up for study. Make a bulleted list of points under each topic so it becomes easy to go back and refer whenever you want to. Apart from the basic level of understanding and setting a good vase with the theoretical part, developing intelligence plus good amount of practise will set the stage for a good show in the exam.
The drawback in this paper is that not too many coaching classes are ready to train aspirants for this subject. Most of them focus on the drawbacks of the subject and miss out on points that the subject has in store, hence making it a difficult nut to crack.
Couple of things to be highlighted when it comes to the management subject is practising good time management plus choosing topics strategically from the big heap. Referring and answering previous year question papers will give a fair idea about the topics that are important and need higher priority.
Let us now cover each part in detail. Let’s focus on what needs to be given importance and what each paper is all about.
Let’s get started with paper 1. Get yourself familiarised with management related terms or jargons in use. That means to say, a lot of technically relevant management terms need to be familiarised with. If you aren’t able to follow the subject from scratch then, it becomes difficult in higher levels of examination.
Keep a management dictionary handy that contains all the essential glossary terms in detail. Remember, each subject has a lot of information that needs to be presented and written out, that too in the spatial time allotted. Act wise and be choosy in what you present.
Write only that information that is essential to the answer. Present answers that are to-the point, brief, crisp, concise and are able to convey to the examiner the essence of your understanding. Be sure not to stuff the paper with too many management related higher choice of words. Keep it simple. Difficult terms can be broken down or made simpler with one-line simple explanations.
For paper 2, your methodology and strategy should vary a bit. Some of the important areas to not miss out in second part are statistics, operations, strategic decision making and management, etc. You can expect a lot of case studies and numerical problems in this section.
Practising well with solved examples after completing the theoretical part is the best thing to follow for this section. Try to analyse simple business models as they can be effective tools to aid your answers. Speed and accuracy in solving simple and difficult problems is very essential for this section. Do not get carried away with the extensive list of problems in the paper.
Management is not an easy paper to crack in the mains, especially for those without a background in the subject. Too much of management jargons and difficult concepts make the subject appear tough. But the examination toughness depends on the thorough understanding of the management subject on the whole.