Chapter 2

PRINCIPLES OF MANAGEMENT

NATURE /FEATURES OF MANAGEMENT PRINCIPLES

a.Universal application: Management principles can be applied to all types of organisation irrespective of their size and nature.

b.General guidelines: Management principles give the guidelines to solve the problems and managers must consider the size and nature of the organisation before applying management principles.

c.Formed by practice and experiments: Management principles are developed through the past experience and research work .They are not developed overnight and they are not the personal feelings of any person.

d.Flexibility: They are flexible i.e. it can be modified according to the changing environment.

e.Behavioural in nature: Management principles are formed to guide and influence the behaviour of employees. They insist on improving the relationship between superior and subordinates.

f.Based on cause and effect relationship: Management principles are based on cause and effect relationship that means these principles tell us what might be the effect if a particular principle is applied in a situation.

SIGNIFICANCE/IMPORTANCE OF MANAGEMENT PRINCIPLES

1.Optimum utilisation of resources: Management principles are designed to get maximum benefits   from the human efforts and other resources.

2.Scientific decision: Management principles enable the managers to approach various problems systematically and scientifically.

3.Meeting the changing environment: These principles helps the managers in implementing the changes in the right direction and at the right level in the organisation.

4.Effective administration: They act as guidelines and base to form various policies and the make administration more effective by discouraging personal biases.

5.Fulfilling social responsibility: Management principles not only act as guidelines for achieving organisational goal but also guides the managers to perform social responsibilities.

PRINCIPLES OF MANAGEMENT DEVELPOED BY HENRY FAYOL 

1.Principle of Division of work :According to this Principle the entire work must be divided into small unit according to the eligibility and knowledge which will bring efficiency and effectiveness                       

2.Principle of Authority and Responsibility: According to this principle there must be proper balance between authority and responsibility in an organization .If not then it will lead to negative result.

3.Principle of Discipline    : There must be some rules and regulations in the organization and the employee must follow those rules and regulations .This will result in systematic working environment.

4.Principle of unity of Command  : According to this an employee should receive order from one boss because if he receiving orders from more than one boss then he will get confused and not be able to understand that whose orders must be executed first.   

5.Unity of Direction      : According to this efforts of all the members should be directed towards one direction that is this achievement of organisational goal.

6.Subordination of individual interest to general interest: According to this principle the interest of the group must supersede that of individual .This can be achieved when managers set an example through their exemplary behavior.

7.Principle of remuneration of person  : According to this principle employees should get fair  remuneration for their performance .Apart from general remuneration they should be given monetary and non-monetary incentives which will motivate the employees to give their maximum efforts.

8.Principle of Centralisation and  Decentralisation :According to this an organization should follow the combination of both i.e. centralization and decentralization

9.Principle of Scalar Chain  : According to this an organization should follow a proper line of authority and Fayol insist that this line or chain must be followed.

10.Principle of Order : This principle indicates that there should be a proper arrangement of men material in a fixed place for everyone in the organization.

11.Principle of Equity: According to this principle all the members should be given equal importance. The policy of individualism should not be followed in an organization.

12.Stability of tenure of employees :According  to this principle management must provide the feeling of job security among the employees because with the feeling of insecurity of job ,the employees cannot contribute their maximum.

13.Principle of initiative :According to this principle employees must be given an opportunity to take some initiative in making and executing a plan . It gives immense satisfaction to employees.

14.Principle of Esprit de Crops :

TECHNIQUES OF SCIENTIFIC MANAGEMENT DEVELOPED BY F.W.TAYLOR

1.Motion study : This technique is applied to determine the unnecessary movements involved in doing a work. With the help of movie camera this technique is done.

2.Time study : It is applied to determine the standard time required to do a job, no of worker required to perform a job . And with the help of stopwatch this technique is conducted .

3.Method study : This technique is conducted to identify the best method of doing a particular work without effecting quality.

4.Fatigue study : It is applied to determine the frequency and duration of rest while an employee doing a work.

5.Mental revaluation : It is conducted to change the attitude of  management and employees towards each other.

6.Differential piece wage system :   This technique emphasizes  on paying different rate of wage for efficient and non efficient workers.

DISSIMILARITIES OF H.FAYOL AND F.W.TAYLOR’S PRINCIPLES

POINT OF DIFFERENCE	TAYLOR	FAYOL
Concern	Taylor's technique and principles are concerned with workers efficiency	Fayol’s principles concerned with management efficiency.
Level	Taylor started his studies from lower level	Fayol started his studies from top level.
Emphasis	Taylor emphasis on standardization of work.	Fayol emphasis on functions of managers
Focus	Taylor laid focuses on eliminating wasteful movements.	Fayol laid focuses on development of principles for better management.
Contribution	Main contribution was development of scientific technique and scientific principles.	Main contribution was development of fourteen principles of general management
Applicability	Applied to specialized situation	Applied universally.

SIMILARITIES OF TAYLOR AND FAYOL’S PRINCIPLES

1.Their main aim is  maximising the efficiency

2.Both insist on co-operation between employees and employers.

3.Both suggested on division of work

4.Both give more importance to organisational interest over individual interest. 

IMPORTANT QUESTIONS AND ANSWERS

Q.1. State the two methods through which management principles have been derived.

Ans: a) Observation method b) Experimental method

Q.2. What is the objective of fatigue study?

Ans: To find out the number of rest intervals and the frequency of rest intervals.

Q.3. “The Principles of management are different from those used in pure science “. Comment.

Ans: The Principles of Management differ from those used in pure science as they are not rigid like principles of pure science since, they deal with human behavior which is Unpredictable.

Q.4. Who Suggested the concept of functional foremanship?

Ans: F.W.Taylor.

Q.5. Rohit keeps machines ,materials, tools etc, ready for operations by concerned workers’. Whose work is described by this sentence under functional foremanship?

Ans: Gang Boss

Q.6. What is meant by flexibility of principles of management?

Ans: The principles of management are not rigid. They can be modified by the

manager when the situation so demands.

Q.7. What is the latest development in scientific management?

Ans: Lean Manufacturing.

Q.8. Which principle of management ensures fairness to all employees by treating them as fairly as possible?

Ans: Principle of equity.

Q.9. What is mental revolution?

Ans: Change in attitude of management & workers towards each other.

Q.10 A subordinate receives order from more than one loss’ . Which principle in violated?

Ans: Unity of command.

Q.11. Name the founder of gender theory of management?

Ans: Henry Fayol.

Q.12. According to Taylor “ even a small production activity like loading pigs of iron into boxcars can be scientifically planned and managed “ which principle of his is emphasized here?

Ans: Science not rule of thumb

Q.13. “The true intentions of management and workers are one and the same

and the prosperity of the one cannot exist without the prosperity of the other” which principle of Taylor is being talked about.

Ans: Harmony not discord.

Q.14. What type of organizational objective is satisfied if an organization

provides salary to the workers commensurate with their job?

Ans: Personal objective

Q.15. the production manager of a company is trying to produce good with minimum cost. Name the concept which is being focused by management.

Ans: Efficiency

Q.16 Hina & Hitesh are typists in a company having the same educational qualification. Hina is getting Rs3000 per month ,Hitesh is getting Rs 4000 per month as salary for the same work hours .Which principle of management is violated in this case? Name the principle $ explain it.

Ans In this case the ‘Principle of Equity’ is violated .As both are having same

qualification working at same authority level but getting different salaries

Q.17. Explain giving reasons under which situations technique of Taylor are not applicable .

Ans- Some technique of Taylor are not universally applicable under some

situations. These are:-

(a)Functional Foremanship- This technique is not applicable in the organizations adopting principle of unity of command.

b) Differential piece rate system: This technique is not possible in organization following principle of equity.

c) Simplification: This technique is not suitable for organizations having objective of diversification and expansion of line of products and varieties develop a differential piece rate plan for a shirt manufacturing company

Q.18. Mohan a manager does not distribute the work among his subordinates either according to the capability or proportionately which principal of management is overlooked . what can be the consequences?

Ans The principal overlooked is the principal of division of work

Following can be the consequences

1. lack of efficiency and effectiveness

2. lack of specialization