Chapter :- 2 Principles of Management
Chapter :- 2 Principles of Management
1. Select the correct alternative and write answer to the following questions :
1. Select the correct alternative and write answer to the following questions :
1. What is principles of management?
(A) Result of experience
(B) Management decide it
(C) Decided by experiments
(D) Managers decide it
2. Why does need arise to make changes in principles of management?
(A) Change in assets
(B) Change in capital
(C) Change in technology
(D) Change in managers
3. Who is the promoter of scientific management?
(A) Luther Gulick
(B) Fredrick Taylor
(C) Henri Fayol
(D) Peter Drucker
4. Which thoughts were presented till the end of 19th century?
(A) Neo classical
(B) Pre-classical
(C) Classical
(D) Modern
5. Who was the promoter of neo classical thought?
(A) Harzburg
(B) Henri Fayol
(C) Fredrick Taylor
(D) Elton Mayo
6. Who said that ‘you save your employees, your employees will save yours’ everything?
(A) C. K. Prahlad
(B) Prof. Urvik
(C) Aargris
(D) Peter. F. Drucker
7. Which management gurus given below have contributed to modern thought?
(A) C. K. Prahlad
(B) Elton Mayo
(C) Max Weber
(D) Henry Gentt
8. Who had given general principles of management?
(A) Fredrick Taylor
(B) Peter. F. Drucker
(C) Henry Fayol
(D) Chester Barnard
9. Method of removing waste generated from unnecessary movement done in wrong directions from any work?
(A) Time study
(B) Motion study
(C) Different wage rates
(D) Employee observation
10. Who was the founder of principle of management by objective?
(A) Peter F. Drucker
(B) Fredrick Taylor
(C) Henri Fayol
(D) Max Weber
11. Which activity from the following is possible by implementing labour division?
(A) Aggregation
(B) Specialization
(C) Simplification
(D) Integration
12. If employee does not get appropriate compensation then what arises?
(A) Labour turnover
(B) Promotion of labour
(C) Absence of labour
(D) Decline of labour
Answer the following questions in one sentence each:
1. What is ‘Principle of Management’?
Ans :-
-> Principles which are formed in relation to the human behavior for achieving the goals easily are known as principles of management.
OR
-> Management Principles are broad and general guidelines for managerial decision making and behaviour of management.
2. What is time Study?
Ans :-
Time Study means scientific study being done for time required to complete certain part of task. The time decided to finish this work in normal circumstances, is called standard time.
OR
As per Taylor, a task should be finished in prescribed time and its careful study is time study.
3. What is unity of command?
Ans :-
Unity of command means that employees cannot follow orders from more than one superior. It means that the employees should get order from only one superior for any job or activity.
OR
Unity of command general means that employee should be responsible to only one superior for any job or activity or department.
4.What is management thoughts?
Ans :
Management thoughts are the outcome of researches, studies , and result in the feild of Management. As well as many management gurus(expert) have represented different principle by sepearte opinion.
5. Which concepts are included in behavior related thoughts?
Ans :
Concepts like inter human relation, motivation, leadership, information, communication process, solution of industrial disputes are included in behaviour related thoughts.
6.In modem thoughts which other subject are related with management?
Ans :
Psychology, social studies, statistics, mathematics and computer and information technology are the other subjects related – to thoughts of modern management.
Q.3 Answer the following questions in short :
1. What is scientific management?
Ans :
Meaning:
- Scientific Management is a mental revolution on the part of particular unit of employees in factory. It’s a totally mental revolution towards their tasks, duties, colleagues and owners.
Defination :-
- According to F.W.Taylor “Knowing exactly what you want your man to do, and then see to it that they do it in the best and the cheapest way.”
- Taylor suggested the following things to be adopted for scientific management:
(1)Each worker should assigned work as per his mental and physical ability.
(2)Each worker should be instructed to perform maximum work as per category.
(3) Each worker doing efficient work rapidly should be paid more wage i.e. More than 30% to 100%.
(2) What does the principle of equality?
Ans :
Equality:
- Employees are a part of managerial system.
- Since the employees are human being, practical approach should be adopted to handle them.
- Superior should behave appropriately and uniformly while taking work from them.
- Efforts should be made to establish equality in unit by informal way instead of legal or traditional way.
- Behaviour of employees is based on faithfulness, attitude, uniformity and justice.
(3) ‘Principles of management are flexible – Suggest.
Ans :-
Flexible:
- Principles of management are not rigid conclusion, but it is flexible.
- As per situation when a manager requires there is a scope for flexibility means manager may change them as per the need of the business.
- When these principles do not seem to match in some situation, the managers is allowed to effect change as per the firm requirement.
E.g. In large units the principle of division of work may be applied uniformly, but in small units the principle of division of work may not be applied in the same proportion.
(4) In to which six parts, Henry Fayol divided his entrepreneur activities – Explain.
Ans :-
- Henry Fayol was a French engineer and Industrialist. He presented and contributed much in the management though his thought and Principle.
- In 1916 he presented 14 rules of Management in his book of “Industial and General Management”.
- According to Henry Fayol,divided administative principle of Industrail Unit in six parts for ease and clarification.
(5) What is ‘Rule of Thumb’?
Ans :
- Under the traditional management, the owners dominated the workers.
- The workers were asked to do maximum work without giving them any major benefits.
- Workers had no voice of their own. They had to simply follow what was told to do in whatever manner.
- The orders given by the owners and managers was the rule of the thumb against which the workers had no say.
(6) Explain the principle of unity of command.
Ans :
->Employees can not follow order from more than one superior, hence this principle shows that employee should get order from only one superior for any job or activity.
- It means that employee should be responsible to only one superior for particular job or department.
- Due to this principle, confusion never arises amongst employees in regards to order.
- If more than one order are given, that creates confusion amongst employees and industrial discipline cannot be maintained due to that.
(7) Explain Taylor’s differential wage rate study.
Ans :-
Differential Wage Rate Study:
- Differential wage rate study means wage given through wage related motivation based on time of work to workers.
- Frederick Taylor favored this motivational wage method. Each worker working in factory have different work efficiency.
- Considering this fact, efficient worker should get more wages, and worker having less efficiency should get lower wage.
- Considering this facts Frederick Taylor has given different wage rates.
Q.4 Answer the following questions Introduction:
(1) Discuss about importance of the principles of management.
Ans :
Importance of principles of management:
- Principles of management provide a vision to the behaviour and approch highly affect of the management works. This in turn highly affects the management.
- Managers are using it for achieving of business goals.
- These principles direct the managers for decision making.Thus, principle of management plays a key role for a unit to perform task more easily and flexible.
The importance of management principles is discussed below:
1. Increases managerial efficiency:
- Principle of management is providing guidelines to managers to perform task in different situation.
- Due to which improvement in functioning of a business units and gain in manager efficiency is also seen.
2. Maximum usage and effective administration of resources:
- In most of the business units, the human and physical resources are available in limited quantity. So, there arises a need of maximum usage of these resources that are available in limited quantity.
- Management principles help in increasing the utility and efficiency of resources that too with minimum cost inputs for achieving of the business goals.
- Here, meaning of the word maximum is that to make usage of the resources thre principle of management, whereas they can get maximum benefit with minimum costing.
3. Helps to take scientific and logical decisions:
- Decisions should be always based on facts, thoughtfulness, objectives and justice.
- Moreover, decisions should be timely, reality based and effective.
- Management principle provides a key role for taking appropriate decisions.
- Using management principle, decisions can be made appropriately, timely, wit partiality and unbiased.
4. To cope up with the changing business environment:
- Normally, Management Principles are an ordinary guide.
- But management principles are necessary to meet business environment in changing circumstances.
5. To fulfill social responsibility:
- Business is indivisible part of community or society.Profit is considered as the aim of the business, but it is not the only aim.
- Development and progress of society are also aims of business unit.By effectively implementation of management principles, business unit can easily achieve aim of social responsibility.
6. Useful for research, training and development:
- Management principles are the main elements of management thoughts.
- Only by using the management principles, task of training, education and development is possible.
- Like, now Ability tests are taken for appointments in various business units.
- These aptitude tests are prepared through research and by implementation and using management principles through which appropriate employees are appointed.
(2) Write a short-note on modem thoughts.
Ans :-
- A change was occurred in the format of Industry and business units after 1960. As a result a need of special approch of management was arise.
- Management was not restricted to only business and industrial units but also included professional people and units that provided professional services like that of taxation, law, medicine, etc. These professions gave rise to a new class of managers.
- Over and above management thoughts, thoughts for psychology, social studies, statistics, mathematics and computer, information technology also emerged.
- Management Gurus like Koontz O’ donnell , George R.Terry have contributed in these thoughts. Moreover, Peter F.Druker , William Ouchi and C. K. Prahlad have contributed in the thoughts of modern management.
(3)‘Principles of management are based on human behavior.’ – Explain the statement.
Ans:-
- Based on human behaviour:
- Human is at the center of the management. So, the principles of management largely affect human behaviour.
- Human behaviour is a psychological phenomenon and so implementing management principles on humans will affect their behaviour in the industry. Hence behaviour emphasize on job satifacation and increasing efficiency of the employees.
- Concepts like inter human relation, motivation, leadership, information,communication process, solution of industrial disputes are included in behaviour related thoughts.
(4.) Explain behavior related thoughts.
Ans :
- To remove some limitation of thoughts of classify Theory, Some management established new approaches which is called Neo classical Theory.This emphases upon behaviour and group behaviour for management.
- Management is an art of getting work from other. As prof.Urvik said, ‘You manage your men, Your men will manage rest of all’,like wise employee or a person is having an important place in unit.
- Since, management of people is done on a constant basis the thoughts related to human behaviour emphasizes on studying aspects that affect behaviour of humans in the work place and their approach towards the work. So, these thoughts emphasize on concepts like job satisfaction, increasing efficiency of employees, ways to keep them motivated, etc. All this is done by performing psychological observations on employees.
- Concepts like inter-human relations, motivation, leadership, information communication process, disposal of industrial disputes are included in behaviour related thoughts.
- One of the biggest drawbacks of this approach is that it focuses on psychological aspects only and does not consider economic parameters of the business unit. Hence, some believe that the human relations cannot be maintained at the cost of productivity.
(5)Discuss about Peter F. Drucker’s contribution in management field.
Ans :
Contribution of Peter F. Drucker in the Field of Management
- Peter F.Drucker (1909-2005) as a well-known managerial leader or management guru. He was also a famous writer, philosopher and an educator.
- There was a change in global business arrangement due to globalization. So when globalization took place in the world, the business management changed drastically. It demanded development of new methods of management.
- Peter F. Drucker favoured for more importance to human asset in business unit. Peter. F. Drucker’s important contribution was ‘Management by Objective (MBO)’ and principles of ‘Self-regulations’ are main.
- About Management by Objective he says that, there should be uniformity in aim of employees and managers for achievement of aim.
- Management by Objective is too much effective for different business formatted units.His contribution lies in human resources management, marketing management and stress management.
- Owing to several contributions to the modern day management, Peter F. Drucker is also called the Father of Modern Management.
Q.5 Answer the following questions in detail :
(1) Describe the principles of scientific management.
Ans :
- Principles of Scientific Management as given by Fredrick Taylor his approch was a revolutionary act.He was far from traditional method.So that workers and owners may work with unity.
- He provided scientific management principles, which are as under :
1. Scientific Method.
2. Planning and Implementation
3. Job Analysis
4. Standardization
5. Scientific Selection and Training
6. Financial Motivation
7. Economical
8. Mental Revolution
1. Scientific Method:
- Traditional methods should be abandoned and instead scientific methods should be adopted for working. Managers should think how the work can be done in the best way by analyzing it scientifically.
2. Planning and Implementation:
- Instead of workers doing planning and implementation, it should be done by experts should draft the plan and workers should follow it.
3. Job Analysis:
- Job analysis is the best way to get work done speedily with lower cost.Analysis of the job to be done should be done before starting it.
- Increased productivity can reduce cost of production after studying time study, motion study and stress study.
- Under job analysis, time and motion study, as well as fatigue study, should be done. This will decrease the cost of production and increase productivity.
4. Standardisation:
- Standardisation and simplicity are scientific process, which should be done in advance.
- Products and process should be standardized and process should be simplified. Doing so will reduce rework and produce all products or services with same desired specifications.
- Equipment, time, situation of work, resources etc. matters are considered for standardization.
5. Scientific Selection and Training:
- Selection of workers should be done appropriately and scientifically. For Scientific standards or benchmarks like education of employees, skill, guts, physical strength, training, etc. can be considered.
- Moreover, an employee should be assigned such work that must be according to his education, study and skill.
- There should be use of training to increase efficiency of workers from time to time.
- Also different kind of scientific tests should be used to know their work interest.
6. Financial Motivation:
- Skilled workers should be given financial and other kind of motivations.
- Different kind of motivated wage schemes have been recommended for that.
- This wage system must be adopted on the basis of individual productivity of employee.
- Their wage rate should be decided not as per speculation, but should only be by scientific study.
7. Economical:
- While implementing the scientific management, the stress should be also put on econorhical ways of management rather than only scientific and technical methods of management. The unit should emphasize on low cost production too.
- Cost estimation arid cost control methods should be considered well in advance. Moreover, if-there occurs deviation in the estimations and their implementations then corrective action should be taken.
8. Mental Revolution:
- Mental revolution should take place between owners and workers for achieving objectives.
- Mental revolution reduces stress between owners and workers and makes achievement of goals easy.
(2)Describe in detail about classical thoughts.
Ans :
Thoughts of Classical Theory
- The thoughts of management presented till the end of 19th century is known as thoughts of classical theory. Main promoters of thoughts of classical theory are Frederick Taylor, Max Webber, Gilbreath, Henry Gantt and Henry Fayol.
- Scientific Management principles presented by Frederick Taylor also exist into the thoughts of classical theory of management even today. Approach of Scientific Management favors scientific principles by time and motion.
- study instead of traditional methods. Main contribution of scientific principle lies into specialization in Management, progressive wages system, responsibility and scientific distribution of task.
- Contribution of Henry Fayol in thoughts of classical theory is also significant. He significantly contributes to thoughts of management by presenting general principles of management.
->He decided levels of different tasks in business unit and tried to decide limits of tasks. - To perform managerial duty at different levels, he also provided universal princip of management as guidelines.
- Apart from this, there is a contribution of Max Webber into thoughts of Classical theory.
- Till the end of 19th century, formats and size started to change due to industrial revolution.
- As a result, need for changes in it aroused due to some limitations of thoughts of classical theory like importance to financial motivation, less important to human approach and informal relations.
(3) Describe Henry Fayol’s principles of management.
Ans :
Henri Fayol’s Principles of management:
With his rich experience and knowledge Henri Fayol presented 14 important principles of Management. They are:
- Division of Work
- Authority and Responsibility
- Discipline
- Unity of Command
- Unity of Direction
- Sub-ordination of Individual Interest to the General Interest
- Remuneration of Personnel
- Centralization
- Scalar chain
- Order
- Equality
- Stability of Personnel Tenure
- Initiative
- Esprit de corps (Feeling of oneness)
Henry Fayol says that “These are only directive principles. Success of these principles depends upon the sharp sense of managementIt is a task of wisdom.”
1) Division of Work:
- Management gives more weightage to higher efficiency of employees and managers. Division of work is one of the ways to achieve this.
- Productivity can be increased by maximum use of production equipments.
- Moreover Division of Work is necessary to increase efficiency of employees and managers.
- Specialization is also possible through division of work.
- Division of Work should be done at managerial and factory level to take benefit of principle of specialization.
2) Authority (power) and Responsibility:
- Power and Responsibility are two sides of a coin. Power without responsibility and responsibility without power are incomplete.
- When a person is assigned a responsibility for some job, at same time power assignment is essential.
- While assigning the power, different parameters like post of employees, knowledge, qualification, experience, art of leadership, maturity, etc. should be considered, as a result enthusiasm of employee’s rise and aim achievement becomes easy.
3) Discipline:
- Optimum uses of equipments and consistency of activities are very much necessary for industrial discipline.Discipline creates certain kind of favourable environment.
- A proper discipline should be maintained for successfully attaining business objectives.Discipline creates harmonious environment at work place.
- Industrial discipline can be established by setting specific rules and code of conduct. This then leads to proper administration of the unit.
- It becomes easy to manage and control the unit having more employees if proper code of conduct is established.
- It also increases work interest of employee and makes the work easy for the managers.
- Supervision, clear and appropriate contracts between workers and owners and appropriate implementation of punishments at every level are important aspects of discipline.
4) Unity of command:
Unity of Command:
- Employees can not follow order from more than one superior; hence this principle shows that employee should get order from only one superior for any job or activity.
- It means that employee should be responsible to only one superior for particular job or department.
- Due to this principle, confusion never arises amongst employees in regards to order.
- If more than one order are given, that creates confusion amongst employees and industrial discipline cannot be maintained due to that.
5) Unity of Direction:
- Planning shapes the future of business. However, if activities do not go as planned, then they are re-directed and brought on the planned track.
- Planning is an outline for future.This can be done through job division and specialization. If deviations are found during planning, then direction-guidance is provided.
- The directions fo’r these things should be given by superior authority. By doing so activities can be well co-ordinated and all the tasks can be done easily.
- According to this principle there should be only one superior employees’ group and this group should be doing job for only one purpose.
6)Subordination of individual interest to the general interest:
- Management is a collective activity.
- Hence there should be co-ordination between persons and departments.
- This results in an easy achievement of goals of Business Units.
- This principle shows that interest of individual or employee group should be considered as subsidiary against the interest of whole unit.
- This means that common interest should be prime instead of indiviual interest.
7)Remuneration of personnel:
- Remuneration means return against the services provided by employees.
- According to the principle, Remuneration to employees of company should be suitable, ideal payment of wages makes stronger relationship between owner and employees.
- Fayol says that employees of company should be paid suitable and ideal wages. This makes owner-employee relation stronger.
- All employees do not work with the same efficiency in a unit.
- There are some efficient employees, who are giving more production and doing more work.
- The unit should also put into practice promotional schemes like bonus, profit sharing, representation in management committee, etc.
8. Centralization:
- There must be clarity that to which extent centralization or decentralization should be done to make successful management infrastructure.
- Not delegating the powers to sub-ordinates and keeping them only in the hands of owners or top personnel is called centralization.
- To make best use of employees’ strength, principle of centralization should be adopted.
- Centralization is adopted when the business unit is small. This helps in making the best use of strength and abilities of employees.
- If the unit is big, it is highly advisable to leave centralization and adopt de-centralization of power.
9. Scalar chain:
- Scalar chain is the formal line of authority which moves from highest to lowest rank in a straight line. This chain specifies the route through which the information is to be communicated to the desired location/person.
- Fayol emphasized that each information in the organization must flow according to this chain to facilitate clear communication of orders of the superiors and feelings of the subordinates.
- This chain must be strictly followed in the organization.
- This principle emphasizes on creating chain from top level management to bottom level employees.
Chain of power from higher administrative officers to bottom level employees should not be broken. - There should be proper delegation of powers and responsibility at respective level. Moreover, the employees of the unit should be aware of , who is responsible to whom.
10. Order:
- This principle emphasize on two parameters.
- Raw material arrangement and social arrangement.
(A) Material order:
->This order specifies that there should be a proper place for all physical resources of the unit.
(B) Social order:
->This order specifies that there should be a proper place for all human resources in accordance with their designations. It states “An appointed place for every employee and each employee at his/her appointed place”.
Skilled employees should be employed at placed at right place in the unit.
11) Equality:
- Employees are a part of managerial system.
- Since the employees are human being, practical approach should be adopted to handle them.
- Superiors should behave appropriately and uniformly while taking work from their sub-ordinates.
- The management should make efforts to establish equality in unit informally father than through legal or traditional ways.
- This principle believes that behaviour of employees is based on faithfulness, attitude, uniformity and justice in the unit.
12) Stability of Personnel Tenure:
- ‘Stability’ means no frequent change, termination and transfer, etc.Permanent and stable employees are asset of any business unit. An employee can developed himself by remainingto one unit and contributin achievement of goals of the business units.
- This principle says that in an organization whenever an employee is appointed for a job, he/she should not be removed or transferred from that position frequently.
- Permanent and stable employees are asset of any business unit.
- Moreover, as the employee remains for long time in the unit, his knowledge of system of work in the unit leads to more productivity. This also reduces ‘ labor turnover rate.
- There should be an arrangement for promotion;training;etc for permanent employee.
13. Initiative:
- As quality of enterpreneurship is necessary for industrialists, in the way there should be quality of initiation in employee.
- ‘Initiative’ means to start, to begin or to instruct in a project.
- Here, in this principle Fayol suggested that each employee should be given an opportunity to take some initiative in framing the functional plan as well as in determining the steps to be taken at each level for proper execution of the plan.
- Industrialists should provide such atmosphere that employees can enthusiastically participate in initiation.
- Initiation improves ability of independent working of an employee and inculcates their leadership qualities.
14.Esprit de Corps (Feeling of Oneness):
- Success of an industing offneness utual relations of managers and employees.
- Hence there should be harmony in both classes.
- Managers should generate group feeling among employees.
- If all employees will work together then achievement of goals becomes easy.
(4) Describe in detail about Nature of management.
- Principles of management are not rigid but practical conclusion)
- These principles are the guidelines to perform a task.
- At the time of implementation of different tasks of management such as planning,organisation and direction, it provides guidelines to the manager for decision making.
- As per expert opinion, mostly these principles are truth but are not absolute truth. Here, rule of exception is also there.
Following are the characteristics of Principles of Management:
(1).Universal Acceptance:
- Principle of management can be applied to most of the business units.
- Wherever there is a need of human collective efforts, these principles are required.
- However, implementation of all the principles may change as per the type, form, activity and size of the business unit, but the principle of management can be applied to the most of business units.
- Thus, the principles of management are comprehensive (vast / detailed) and universal.
(2).Flexible:
- Principles of management are not rigid conclusion, but it is flexible.
- As per situation when a manager requires there is a scope for flexibility. When these principles do not seem to match in some situation, the managers is allowed to effect change.
- E.g. In large units the principle of division of work may be applied uniformly, but in small units the principle of division of work may not be applied in the same proportion.
(3).General Guidelines:
- Principles of management are the result of experiences gained by different exp in different situations.
- At time of managing a business unit different and complex problems are arising The form of these issues may be different as per the unit, which could not give similar result for each unit in all situations.
- Thus, the principles of management could not be strictly applied for each unit, but can get desired results by accepting the principle as only guidelines and by using it in favourable situation.
4. Based on Human Behaviour:
- As human is at the center of the management, the principle of management may seem to have a big effect on human behaviour,
- Principle of management has direct relationship with the human behaviour.
5. Contingency:
- Contingency is one of the elements to apply the principle of management.
- Achievement of goal can be made easier by a unit with taking required decisions through usage of these principles in certain unavoidable situation.
- Such as to pay appropriate and reasonable wages to the employees.
- This criteria of being fair and reasonable depends upon the concern regarding necessity and contingency of the affecting factors.
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