Management Optional Syllabus (Paper 1 + Paper 2) for UPSC Mains

For students who choose management as their optional subject for the UPSC mains examination, it is important to be aware of what topics the syllabus includes. This will ensure a comprehensive preparation and better results.

Here, we will discuss the complete UPSC management optional syllabus to help aspirants in their preparation journey!

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Management Optional Paper 1 Syllabus

The sections included in the syllabus of the management optional subject for UPSC include:

A. Managerial Function and Process

1. Concept and foundations of management
2. Evolution of Management Thoughts
3. Managerial Functions: Planning, Organizing and Controlling; Decision-making
4. Role of Manager, Managerial skills; Entrepreneurship; Management of innovation
5. Managing in a global environment, Flexible Systems Management
6. Social responsibility and managerial ethics
7. Process and customer orientation; Managerial processes on direct and indirect value chain

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B. Organisational Behaviour and Design

1. Conceptual model of organization behavior
2. The individual processes personality, values and attitude, perception, motivation, learning and reinforcement, work stress and stress management
3. The dynamics of organizational behavior, power, politics, conflict and negotiation, leadership process and styles, communication
4. Decision-making, job design; Classical, Neoclassical, and Contingency approaches to organizational design
5. Organizational theory and design—Organizational culture, managing cultural diversity, learning Organization; Organizational change and development; Knowledge-Based Enterprise systems and processes; Networked and virtual organizations

C. Human Resource Management

1. HR challenges; HRM functions; The future challenges of HRM
2. Strategic Management of human resources; Human resource planning; Job analysis
3. Job evaluation, Recruitment, and selection; Training and development; Promotion and transfer; Performance management
4. Compensation management and benefits
5. Employee morale and productivity; Management of Organizational climate and Industrial relations
6. Human resources accounting and audit; Human resource information system; International human resource management

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D. Accounting for Managers

1. Financial accounting concept, importance and scope, generally accepted accounting
2. Principles, preparation of financial statements with special reference to the analysis of a balance sheet and measurement of business income
3. Inventory valuation and depreciation, financial statement analysis, fund flow analysis
4. The statement of cash flows: Management accounting concept, need, importance and scope
5. Management accounting Concepts – Cost accounting records and processes, cost ledger and control accounts, reconciliation and integration between financial and cost accounts
6. Overhead cost and control, Job and process costing, Budget and budgetary control
7. Performance budgeting, Zero-base budgeting, relevant costing and costing for decision-making, standard costing and variance analysis, marginal costing and absorption costing

E. Financial Management

1. Goal of Finance Function. Concepts of value and return. Valuation of Bonds and Shares
2. Management of working capital: Estimation and Financing
3. Management of cash, receivables, inventory and current liabilities; Cost of capital
4. Capital budgeting; Financial and operating leverage
5. Design of capital structure: theories and practices; Shareholder value creation: dividend policy, corporate financial policy and strategy, management of corporate distress and restructuring strategy
6. Capital and money markets: institutions and instruments; Leasing hire purchase and venture capital
7. Regulation of capital market; Risk and return: portfolio theory; CAPM; APT; Financial derivatives: option, futures, swap; Recent reforms in the financial sector

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F. Marketing Management

1. Concept, evolution, and scope; Marketing strategy formulation and components of marketing plan
2. Segmenting and targeting the market; Positioning and differentiating the market offering
3. Analyzing competition; Analyzing consumer markets; Industrial buyer behavior
4. Market research; Product strategy; Pricing strategies; Designing and managing Marketing channels
5. Integrated marketing communications; Building customer satisfaction, Value, and retention; Services and non-profit marketing
6. Ethics in marketing; Consumer protection; Internet marketing; Retail management; Customer relationship management; Concept of holistic marketing.

Management Optional Paper 2 Syllabus

The UPSC Mains Management syllabus for the second paper is as follows:

A. Quantitative Techniques in Decision-Making

1. Descriptive statistics – Tabular, graphical, and numerical methods; introduction to probability, discrete and continuous probability distributions; inferential statistics-sampling 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.
2. Linear programming – Problem formulation, simplex method, and graphical solution, sensitivity analysis

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B. Production and Operations Management

1. Fundamentals of operations management; Organizing for production
2. Aggregate production planning, capacity planning, plant design: process planning, plant size and scale of operations
3. Management of facilities; Line balancing; Equipment replacement and maintenance
4. Production control; Supply, chain management—vendor evaluation and audit
5. Quality management; Statistical process control, Six Sigma; Flexibility and agility in manufacturing systems
6. World-class manufacturing; Project management concepts, R&D management
7. Management of service operations; Role and importance of materials management, value analysis, make or buy decision
8. Inventory control, MRP; Waste management

C. Management Information System

1. Conceptual foundations of information systems; Information theory
2. Information resource management; Types of Information Systems; Systems Development
3. Overview of Systems and Design; System Development management life-cycle
4. Designing online and distributed environments; Implementation and control of the project
5. Trends in information technology; Managing data resources—Organising data.
6. DSS and RDBMS; Enterprise Resource Planning (ERP), Expert systems
7. e-Business architecture, e-governance, Information systems planning, Flexibility in information systems
8. User involvement; Evaluation of information systems

D. Government Business Interface

1. New Industrial Policy of the Government:
2. Public Distribution System; Government control over price and distribution; Consumer Protection Act (CPA) and The Role of Voluntary Organizations in protecting consumers’ rights
3. Government’s policy with regard to Small Scale Industries; Government clearances for establishing a new enterprise
4. State participation in business, Interaction between Government, Business, and different Chambers of Commerce and Industry in India
5. liberalization, deregulation and privatization
6. Indian planning system; Government policy concerning the development of Backward areas/regions
7. The Responsibilities of the business as well as the Government to protect the environment
8. Corporate Governance; Cyber Laws.

E. Strategic Cost Management

1. Business policy as a field of study; Nature and scope of strategic management, Strategic intent, vision, objectives and policies
2. Process of strategic planning and implementation
3. Environmental analysis and internal analysis; SWOT analysis; Tools and techniques for strategic analysis
4. Impact matrix: The experience curve, BCG matrix, GEC mode, Industry analysis
5. Concept of the value chain; Strategic profile of a firm; Framework for analyzing competition
6. The competitive advantage of a firm; Generic competitive strategies; Growth strategies expansion, integration, and diversification
7. Concept of core competence, Strategic flexibility; Reinventing strategy; Strategy and structure; chief Executive and Board
8. Turnaround management; Management of strategic change; Strategic alliances, Mergers, and Acquisitions; Strategy and corporate evolution in the Indian context.

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F. International Business

1. International Business Environment: Changing composition of trade in goods and services
2. India’s Foreign Trade: Policy and trends; Financing of International trade; Regional Economic Cooperation
3. FTAs; Internationalisation of service firms; International production; Operation Management in International companies
4. International Taxation; Global competitiveness and technological developments; Global E-Business
5. Designing global organizational structure and control; Multicultural management; Global business strategy
6. Global marketing strategies; Export Management; Export-Import procedures; Joint Ventures
7. Foreign Investment: Foreign direct investment and foreign portfolio investment; Cross-border Mergers and Acquisitions
8. Foreign Exchange Risk Exposure Management; World Financial Markets and International Banking; External Debt Management; Country Risk Analysis

Conclusion on Management Optional Syllabus

Any aspirant willing to crack the UPSC examination must lay ample emphasis on preparing thoroughly for their chosen optional subject. If you are someone who wants to appear for the UPSC optional subject of management, you must make sure that you are covering the entire syllabus when preparing.

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