Wednesday 28 September 2011

BUSINESS STUDIES - HOT QUESTION N ANSWERS - PRINCIPLES OF MANAGEMENT


Chapter-2
PRINCIPLES OF MANAGEMENT
Q.1         Prince the manager of a business undertaking, is very lax with his fellow employees and subordinates. He does not given them parameters or rules for reporting to work and completion of assignments. Which principle of management is overlooked?
Ans.       Principle of Authority and Responsibility.
Q.2         “Workers should be encourage to develop and carry out their plans for development. “Identify the principle of management formulated by Fayol.
Ans.       Principle of initiative.
Q.3         “A manager should replace ‘I’ with ‘we’ in all his conversation with worker to faster team spirit.” Identify the principle of management emphasized here.
Ans.       Espirit –De- Corps
Q.4         Priyanka, manager, experts his subordinates to adapt to the new environs and working condition without giving them time to settle down. Which principle of management is being overlooked?
Ans.       Stability of tenure of personal.
Q.5         Which principle of Taylor advocates scientific enquiry as  opposed to hit and trail?
Ans.       Science is not Rule of Thumb.
Q.6         Who gave the concept of scientific management ? What was his profession?
Ans.       F.W. Taylor gave the concept of scientific management and he was on American mechanical engineer.
Q.7         Why is Taylor most remembered?
Ans.       For his time and motion studies.
Q.8         What is the premise of scientific management?
Ans.       Finding ‘one best way’ to do a particular task.
Q.9         What is meant by ‘mental revolution’ according to Taylor?
Ans.       According to Taylor, mental revolution means a complete transformation in the attitude between management and workers. Both should realize that they need each other.
Q.10       Name two companies which have successfully implemented standardization and simplification of work.
Ans.       Nokia, Toyota and Microsoft. This is evident from their large share in their respective markets.
Q.11       What is the basis of formation of scientific management?
Ans.       Observation and Experimentation.
Q.12       What is the objective of standardisation?
Ans.       To increase the efficiency of workers.
Q.13       How does the techniques of ‘motion study’ help to improve the efficiency of workers?
Ans.       By eliminating unnecessary and wasteful movements on the job.
Q.14       List any two principle of Scientific Management’ formulated by Taylor for managing an organization scientifically.
Ans.       Science, not Rule of Thumb
               Harmony, not Discord
               Cooperation, not Individualism
Conceptual Questions
Q.1         Fayol points out the danger and cost of unnecessary labour turnover in one of this ‘Principle’. Name & explain the principle.
Ans.       Principle of stability of tenure of personnel : According to this principle, employees should not be moved from their place frequently. The period of service in a position should be fixed. Fayol suggest that employee turnover should be minimized to maintain organizational efficiency. There should not be frequent terminations & transfers. Effects :
1.    Provides a feeling of job – security among the employees.
2.    Employees efficiency increases and they contribute their maximum when feel that their job is secure.
3.    No wastage of time & resources.
Adverse effects of violation :-
1.    Cost of unnecessary labour turnover. Recruitment, selection & training cost will be high.
2.    If the job of a person is not secure, he/she will look out job else where and his/her work will not be satisfactory.
Q.2         Workers should be encouraged to development carry out their plans for improvements. Identify the principle of management formulated by Fayol.
Ans.       Principle of initiative.
Q.3         Why does the principle of unity of command not hold good in the case of functional foremanship?
Ans.       According to the principle of unity of command, an employee should receive orders / instruction from one & only one boss or superior On the other hand, the principle of functional foremanship insists on orders and instructions from eight specialists.
               So, if an organization has appointed eight functional specialists, then it is not possible to allow only one superior to give orders. Hence, the principle of unity of command does not hold good in the case of functional foremanship.
Q.4         Explain four techniques which facilitate application of the principle of scientific management.
Ans.       1) Time study : It determines the standard time taken to perform a well defined job the objective of time study is to determine the no of workers to be employed, frame suitable incentive  schemes and determine labour costs.
               2) Method study : The objective of method study is to find out one best way of doing the job.
               Example : To manufacture shoes, the methods could be manual or mechanical but the cost of labour & capital to manufacture shoes may vary. The management  has to decide about the method to be used t manufacture shoes.
               3) Motion study : Motion study refers to the study of movements like lifting, putting objects, sitting etc, which are undertaken while doing a typical job.
               Example : Suppose a worker is engaged in a motor mechanic job. The expert in motion study observe how he moves various parts of his body, how many times he has to pick up and keep the tools back.
               4) Fatigue study : Fatigue study seeks to determine the amount & frequency of rest intervals in completing a task.
               Example : Suppose an employee is working in a plant where three shifts are in operation. If he continues to work in the second & third shift, he may feel totally exhausted and will not continue to work any longer.
Q.5         Which principle of management envisages that each group of activities having the same objectives must have one head and one plan? Explain the principle with a suitable example.
Ans.       Unity of Direction :
               The principle implies that there should be “ONE HEAD AND ONE PLAN” for a group of activities having the same objective.
               Example : If a company is manufacturing motor cycle as well as cars, then it should have two separate divisions. Each divisions should have its own in charge, plans & resources effects.
1.    Ensures unity of action.
2.    Facilitates coordination.
Adverse effects :
1.    There will be unnecessary duplication of efforts & wastage of resources.
2.    Efficiency of the organization will also be adversely effected because of lack of unity of action.
Q.6         Name and explain the technique of Taylor which is the strongest motivation for a worker to reach standard performance.
Ans.       Differential piece way system. This is method of wage payment suggested by F.W. Taylor in which efficient & inefficient workers are paid at different rates. He wanted to reword efficient worker. The efficient workers are paid at higher rates than the inefficient ones. Workers are paid on the basis of the number of units produced. If a worker produces more than standard units, he is given a higher wage per unit. Due to different rates for different sets of workers, It is known as differential wages system.
Q.7         The directors of Bhupender Ltd. An arganisation  manufacturing computers, want to double the sales & have given  this responsibility of their sales manager. The sales manager has no authority either to increase the sales expenses or appoint new salesman. Hence he could not achieve this target. Is the sales manager responsible for not achieving the target? Explain in brief, the relevant principle in support  of your answer.
Ans.       No, the sales manager is not responsible because he has no authority either to increases the sales expenses or appoint new salesmen.
               In this case the principle of ‘Parity of Authority and Responsibility is violated.
               Authority means the right orders & obtain obedience. There are two types of authority (a) official  authority i.e. authority to command & (b) Personal authority which is the authority of the individual manager. ‘Responsibility’ means obligation to perform the job assigned on time. Fayol suggested that there must be balance between authority and responsibility. Giving authority without responsibility may lead to irresponsible use of authority. So an organization should build safeguards against abuse of managerial power.
Effects :-
1.        No misuse of authority.
2.        Helps in performing duties on time without any delay
Adverse effect 
  1. If authority is less, the subordinate will not be able to perform his duties well.
  2. If the subordinate is given excess authority he may misuse his authority.
Q.8         Name the principle and explain of Fayol which suggests that communication from top to bottom should follow the official lines of command.
Ans.       Principle of scalar chain.
               The formal lines of authority form highest to lowest ranks are know as scalar chain. The principle of scalar chain suggests that communication from top to bottom should follow the official lines of command.
               According to Fayol, organizations should have a chain of authority & communication that runs from top to bottom and should be followed by managers & the subordinates.

                           Scalar chain and Gang Plank
Effect :
  1. Smooth flow of communication in organization.
  2. No communication Gap in the organization.
  3. There will be unity of command in the organization
  4. No confusion of Dual order.
Adverse effect :-
  1. Authority responsibility relationship will not be clear
  2. Communication gap in the organization.
Q.9         Hina and Harish are typists in a company having same educational qualifications. Hina is getting Rs. 3000 per month and Harish Rs. 400 per month as salary for the same working hours. Which principle of management is  violated in this case? Name and explain the principle.
Ans.       Principle of Equity :-
               The principle of ‘Equity’ emphasizes kindliness and justice in the behaviour of managers towards works. According to Fayol, employees can be made to put in their best only when they are given kind, fair and just treatment.
Q.10       Taylor’s techniques of management are universally applicable. Do you agree? Give any four reasons in support of your answer.
Ans.       Taylor’s techniques are developed through scientific approach and not by rule of thumb.  Any principle developed scientifically is universally applicable because these are not effected by personal feelings or biasness of managers. The techniques which facilitate the universal applicability of Taylor’s principles are :-
               ®    Time study                                        ®   Motion study
               ®      Method study                                 ®   Fatigue study
               But, some techniques of scientific management are not universally applicable under some situations. These are
i)             Functional Foremanship  ® This  technique is not applicable in the organization following the principle of unity of command.
ii)            Differential Piece Wage system  : This technique is also not applicable in the organization following the principle of equity.
Q.11       “Taylor’s principles of scientific management and Fayol’s principle of management are mutually complementary “. Do you agree? Give any five reasons in support of your answer .
Ans.       Yes, I agree with the view – “Taylor’s principle of scientific management and Fayol’s principles of management are mutually complementary “.
               While Taylor succeeded in revolutionizing the working of factory shop floor, Hennry Fayol explained the general  principles of management which the managers should follow in doing their work.
               ® Fayol’s perspective is top level management  which Taylor’s perspective is shop floor level of factory. Taylor’s scientific principles aim at increasing worker’s efficiency by devising the best method, fair day’s work, differential piece wage system and functional foremanship. On the other hand, Taylor’s principle aim at increasing managerial efficiency.
               ® The aim of the principles of both Taylor’s and Fayol is the same, ie to maximize efficiency of work and performance.
                ® Both sets of principle suggest mutual cooperation b/w employer and employees.
Q.12       The production manager of Bharat Ltd. Instructs a salesman to go slow in selling the product, whereas the marketing manager is insisting on fast selling to achieve the target. Which principle of management is being violated in this case? State the consequences of violation of the this principle.
Ans.       Unity of Command :-
               Consequences of Violation :-
               If an employee gets orders from two superiors at the same time i.e., principle of unity of command is violated.
               ® authority is undermined
               ® discipline and order is disturbed
               ® stability is threatened
               ® conflict among superiors
               ® loyalty of employee is divided
               ®  employees will remain in confusion regarding whose tasks to be done. He will have option for excuses.
Q.13       Priya and Nandita are working in a organization. They perform similar jobs but they are paid their salaries at different rates. Which principle of management is violated in this situation? Explain the principles in brief.
Ans.       Principle of Equity :-
               The principle of “Equity” emphasizes kindliness and justice in the behaviour of managers towards workers.
               According to Fayol, employees can be made to put in their best only when are given kind, fair and just treatments.
Q.14       In each of the following cases tell  which principle of management as given by Henry  Fayol being violated and how.
               a) When a sales manager is not given the right to discount to the buyer necessary to conclude a large scale. Contract, which will be profitable for the company.
              Ans.  Authority and responsibility.
               b) When each division of the company does not have a separate plan of action.
               Ans. Unity of Direction.
               c) When a subordinate receives order from two superiors.
               Ans. Unity of command.
               d) When a manager awards contract for supply of raw material to a particular party which happens to be owned by his relative ignoring other parties who can supply the same at a cheaper rate.
               Ans. Subordination of individual interest to group interest.
               e) When a subordinate habitually contacts higher authority in the company by passing his/her immediate  superior.
               Ans. Scalar chain.
               f) When the tools and /or raw materials are not found at the right place in the company.
               Ans. Order.
Q.15       Identify the techniques of scientific management which are described by the statements given below. Also give reason.
               a) When many specialists supervise each worker.
               Ans. Functional foremanship.
               b) When uniformity is introduced in materials machines tools method of work and working condition after due research.
               Ans. Standardisation of work.
               c) To determine standard time taken to perform a will defined job.
               Ans. Time study.
               d) Giving variable wages to workers and management based on their performance.
               Ans. Deferential piece wage system.
               e) Change in the attitude of workers and management towards are another from competition to cooperation.
               Ans. Mental Revolution.
               f) To fine out one best way to do job.
               Ans. Method study.
Q.16       If an organization does not provide the right place for physical & human resources in the organization. Which principle is violated? What are the consequences?
Ans.       Principle of order :-
               Consequences :
1.    Violation of material order leads to wasteful movement of materials & tools.
2.    If social order is violated, it may not be easy to contact the needed employee.
1 Mark Questions
1.         What do you mean by managerial principles ?
2.         Give one difference between managerial principles and pure scientific principles.
3.         What is the difference between Principles & Values ?
4.         How are the principles of management formed ?
5.         Why is it said that principles of management are universal ?
6.         How can you say that managerial principles are flexible ?
7.         If the co. doesn’t provide the right place for physical and human resources, which principles of management is violated ?
8.         Which device helps subordinates of the same level of different departments to communicate directly in case of emergency ?
9.         Which principle promotes team spirit ?
10.       Who emphasized on administrative principles of management ?
11.       What is positive effect of principle of division of work ?
12.       What is the negative effect of not following the principle of division of work ?
13.       What is principle of initiative ?
14.       What is the objective of principle of unity of direction ?
15.       What is the negative effect if principle of order is violated ?
16.       Which principle of management suggest that employees should be treated with justice and kindness ?
17.       What is the purpose of gang plank ?
18.       What is the principle of unity of direction ?
19.       Which technique of scientific management give high compensation to better performer ?
20.       Which technique of scientific management seeks to find out one best way of doing a job ?
21.       What is the objective of scientific management ?
22.       Name the technique of scientific management which focuses on separation of planning and execution function.
23.       Name the personnel who work under the production In charge ?
24.       What is the objective of method study ?
25.       What is the objective of ‘Time Study’ ?

Question Bank
1.            Principles of management are statement of fundamental truth which provide guidelines for management decision making and action.
2.            Management principles are not as rigid as principles of pure science. They deal with  human behaviour, which is never static. Hence, principles of management have to keep pace with change.
3.            Principles are basic truth or guidelines for behaviour while values have moral connotations, i.e., something which are acceptable or desirable.
4.            They are formed by practice and experimentation.
5.            Because they can be applied to all types of organization-business as well as non-business, small as well as large, public sector as well as private sector, manufacturing as well as service sector.
6.            Because these can be modified by the manager when the situation so demands.
7.            Principle of ‘Order’.
8.            Gang Plank.
9.            Espirit De Corps.
10.         Henry-Fayol. He was a French mining engineer.
11.         There would be specialisation and efficient utilization of Labour.
12.         Performance of the workers will be poor due to absence of specialization.
13.         According to the principle of initiative, workers should be encouraged to develop and carry out their plans for improvements.
14.         To ensure unity of action and co-ordination.
15.         There will be chaos leading to loss of time and material.
16.         Principle of equity.
17.         To enable two employees at the same level to  communicate directly with each other.
18.         Unity of direction.
19.         Differentiate Piece wage system.
20.         Method study.
21.         Finding ‘one best way’ to do a particular task.
22.         Functions Foremanship.
23.         Speed Boss, Gang Boss, Repair Boss, and Inspector.
24.         To find out ‘one best way’ of doing job.
25.         To determine the standard time required to perform a certain job so as to fix a fair day’s work for the workman.



3-4 Marks Questions
1.         What do you mean by management principles ?
2.         “Management principles are evolutionary” Explain.
3.         Briefly explain the nature of managerial principles.
4.         “Management principles are dynamic”. Comment.
5.         “Management principles aim at influencing human behaviour”. Explain.
6.         “Management principles are relative not absolute”. Explain.
7.         How does managerial principles ensure optimum utilization of resources and effective administration ?
8.         Define Scientific management any name any three principles of it.
9.         How does ‘mental revolution’ helpful in effective management ?
10.       Explain the principle ‘Science, not the rule of Thumb” given by Taylor.
11.       Explain the principle ‘Harmony not discord’.
12.       Name the techniques of scientific management.
13.       What do you mean by Time Study ? What is its objective ?
14.       Explain ‘fatigue study’ and its objective.
15.       Explain the techniques of differential piece rate system.
16.       Distinguish between unity of command and unity of direction on the basis of.
            (i)         Meaning       
            (ii)        Aim
            (iii)       Implications.

Suggested Answers to 3-4 Marks Questions
Ans.1      Management principles are statement of fundamental truth which provide guidelines for managerial decision making and action. These principles are derived on the basis of observations and analysis or experimental studies. They help in predicting the results of managerial action. They have been given Henry Fayol and F.W. Taylor
                E.g. Principle of Division of work.
Ans.2      Principles of management are evolutionary in nature-They are formed by practice and experimentations. They are developed on the basis of organized quantative facts or from the long experiences of the leaders and scholars of management thought’s.
                  They are derived on the basis of observation and analysis of event which management face in actual practice. They are based on experimental studies.
Ans.3        Nature of managerial principles—
(a)       General guidelines— They are not readymade solutions to all managerial problems,   rather they are general guidelines to help the management.
(b)       Formed by practice and experimentation — They are not developed overnight. They are derived on the basis of observations and analysis of events which managers face in actual practice. Secondly they are derived after conducting experimental studies.
(c)       Flexible— They can be modified by managers to meet the needs of the situations.
(d)       Universal Applicability— They are applicable to all types of organizations.
Ans. 4.    Management principles are dynamic— Management principles are flexible and can be utilized under different conditions of the organizations. They are influenced by the need of the given situation. These are flexible guide whose application depends upon the physical factors, social factors and economic factors of an organization.
Ans. 5.    Management involves dealing with human. Management principles are directed towards regulating the human behaviour but not definite rules can be laid down in this respect. Human behaviour is complex and also unpredictable. Each individual has uniqueness based upon his ego, beliefs, culture ability etc.
                Principles of management help the management to modify the behaviour of employees at work place.
Ans. 6.    Management principles are relative not absolute.  -------   Yes, management principles are not absolute. They can not be applied blindly in all situations and in all organizations. They have to be applied keeping in view the prevailing situation. They require the room for modification as same principle may produce different result in different situations.
Ans. 7.    In every organization resources such as men machines, materials and money play a vital role. Management principles are designed in such a way that maximum benefits from these resources can be achieved with minimum resources wastage. Along with this principles of management also help in establishing effective administration by limiting the boundary of managerial discretion so that their decisions may be free from personal biases.
Ans. 8.    According to Taylor, “Scientific management means knowing exactly what you want your men to do and seeing that they do it in the best and cheapest way”.
                Three Principles of Scientific management are as follows :
(i)         Science, not rule of thumb
(ii)        Harmony, not discord.
(iii)      Cooperation, not individualism.
Ans. 9.    Mental revolution implies change in the attitude of both the management and the workers towards each other. It becomes possible by : (a) sharing a part of surplus with workers, (b) training of employees, (c) division of word, (d) team spirit, (e) positive attitude, (f) sense of discipline, (g) Sincerity etc. Mental revolution results in achievement of organizational goals effectively and efficiently.
Ans. 10. This principle is concerned with selecting the best way of performing a job through the application of scientific principles there of and not by intuition, experience and hit and trail methods. It means that work assigned to any employee should be observed and analyzed with respect to each element or part there of and the time involved therein as to decide the best way of performing the work and to determine the standard output. Rule of thumb does not involve analytical thinking before doing.
Ans. 11. This principle require that there should become understanding between workers and management. Manager should create suitable working conditions and resolve all problems scientifically. Also, workers should attend to their jobs with devotion and be careful not to waste resources of the organization. Workers should be disciplined and loyal. It helps to produce synergy effect, since both management and work in union.
Ans. 12. Techniques of scientific management  are as follows :—
(i)         Functional Foremanship.
(ii)        Standardization and simplification of work
(iii)      Method study
(iv)      Time study
(v)        Fatigue study
(vi)      Motion study
(vii)     Differential piece wage system.
Ans. 13. Time study determines the standard time taken by workmen to perform a given task.
                The purpose of time study are as follows:—
(i)         To decide how much time is normally required to perform a certain job,
(ii)        To determine a fair day’s work for the workmen.
(iii)      To determine the number of workers to be employed.
(iv)      To frame suitable incentive schemes.
Ans. 14. Fatigue study determines the amount and frequency of intervals in completing a task. Workers can not work at a stretch. After putting in work for a certain period of time, they feel tired which affects their performance. It they are allowed rest intervals, they will regain their stamina and will resume their work with greater efficiency.
Ans. 15. This is a method of wage payment suggested by F.W. Taylor in which efficient and inefficient workers are paid at different rates. He wanted to reward efficient workers. So, he introduced different rates of wages payment for those who performed above standard and for those who performed below standard.
                The efficient workers are paid at higher rates than the inefficient ones.
                Workers are paid on the basis of the number of units produced. If a worker produces more than standard nits he is given a higher wages per unit. Due to different rates for different sets of workers, it is known as differential wage system.
                The wage payable to a worker are calculated as follows :
                Wages = No. of units produced x wage Rate.
Ans. 16.

Basic
Unity of command
Unity of Direction
1. Meaning
One subordinate receives order from, & is accountable to, one & only one superior.
All the members of a group having same objectives must have one head & one plan
2. Aim
It aims at avoiding confusion & conflicts.
It aims at ensuring unity of action to facilitate coordination.
3. Implication
It affects an individual worker.
It affects the entire organization in the sense that of this principle is violated, It hinders achievement of common goals.



5-6 Marks Questions
1.               Explain the principles of scientific management given by Taylor.
2.               Explain any functional foremanship techniques of Scientific Management with diagram.
3.               Explain the importance of managerial principles.
4.               Are the principles of management given by Henry Fayol and F.W. Taylor are complimentary or supplementary to each other. Justify your answer.
Ans.1  Scientific management means knowing exactly what you want men to do and seeing that they do it in the best and cheapest way.
              Principles of Scientific Management
(i)            Science, not rule of thumb :— Taylor believes that there was only one best method to maximize efficiency. This method can be developed through study and analysis. The method so developed should substitute ‘Rule of Thumb’ throughout the organization.
            Scientific method involves scientific observations and analysis of each task and determination of standard of work. This will result in tremendous saving of human energy as will as wastage of time and materials.
(ii)          Harmony, not discord :— Taylor emphasized that there should be complete harmony between the management and workers. Both should realize that each one is important to achive, this Taylor advocate a complete ‘Mental Revolution’ on the part of both management and workers. It means that management and workers should transform their thinking. In such a situation each trade unions will not think of going on strike etc. Managers should adopt an enlightened attitude and share the gains of the company with workers. Workers on their par should work hard with discipline and loyalty. Both should be part of the family.
(iii)         Co-operation, not individualism :— There should be complete cooperation between the labour and management instead of individualism. Management should work almost side by side with the worker helping, encouraging and smoothing the way for them.
This principle is extension of the principle ‘Harmony not Discord’. Competition should be replaced by co-operation. Both should realize that they need each other. For management should receive their suggestions of the employees. They should be rewarded if any of their suggestions results in substantial reduction in costs. They should be allowed to take part in management decisions. At the same time workers should resist from going on strike and making unreasonable demands on the management.
(iv)         Development of each and every person to his/her greatest efficiency and prosperity :— Industrial efficiency depends to a large extent on the competencies of the employees. According to Taylor, to increase efficiency each person should be scientifically selected. The work assigned should suit her/his physical, mental & intellectual capability. They should be given the required training as well as to learn the ‘best method’ to do a Job.
            Efficient employees would produce more and earn more. This will ensure that their greatest efficiency and prosperity for both the company and workers.
Ans.2    Techniques of Scientific Management
            Functional foremanship :— It is an extension of the principle of division of work on specialization to the shop floor. Each worker will have to take order from eight foremen in the related process of function of production.
            Basic Aim of Functional Foremanship :— To separate planning functions from executive (operative) functions. Under the factory manager there was a planning in change and a production incharge.
  • Under planning incharge, four personnel, namely, instruction card clerk, route clerk, time clerk and cost clerk and disciplinarian worked. These four personnel would draft instructors for the workers specify the route of production prepare time and cost sheet and ensure discipline, respectively.
  • Under production incharge four personnel who would work were speed boss, gang boss, repair boss and inspector. They were responsible for timely and accurate completion of job, keeping machines and tools etc., ready for operation by workers, ensure proper working condition of machines and tools and chick the quality of work.
  • Foremen should have intelligence, education, tact, judgment, special knowledge, energy, honesty and good health all these qualities cannot always be found in a single foreman. So, Taylor  purposed eight specialists.
  •  

Factory Manager
 

                        Planning incharge                                                  Production Incharge
           

Inspectors
        Instruction       Route      Time & Cost      Discipli-       Speed           Gang      Repairs

        Card Clerk      Clerk           Clerk               narian                Boss            Boss          Boss                       

Ans.4.   Significance of Management Principles
              Provide useful insights to manager : – Principle of managers provides useful insights to managerial behaviour and influence managerial practices. These principles will add to their knowledge ability and understanding of managerial situations and circumstances.
              Managers may apply inside principles to fulfill their task and responsibility. They enable the managers to learn from past mistakes and save time by solving recurring problems fast. So, management principles increase management efficiency.
              Optimum Utilisation of Resources :—
              Management principles aim at optimum utilization of human and physical resources for the attainment of organizational goals. By optimum utilization, we learn that resources should be put to use in such a manner that they should give maximum benefit with minimum cost.
              e.g. — Science not rule of thumb suggest-every task should be done with minimum required efforts and energy.
              Scientific Decisions
              Management principles enable the managers to approach various problems systematically & scientifically & keep them in taking scientific decisions to meet changing conditions. Management decisions taken on the basis of principles are free from bias and prejudice because they emphasize logic rather than blind faith.
              Meeting Changing Environment requirements :— Management principles train the managers to adopt the changes in technology in right direction and at right level in the organization. Thus, although the management principles are general guidelines, yet they are modified by the manager to meet changing requirements of the environment.
              Fulfilling social Responsibility :— Management principles not only act as guidelines for achieving organisational objectives but this principle also guide the managers to perform social responsibility.
              E.g.— principles of “Fair Remuneration’ insists on adequate salary to employee.
5.           The contribution of Henry Fayol and F.W. Taylor to the field of management is explained in following table.
              Taylor vs Fayol
Basis
Henri Fayol
F.W. Taylor
1. Perspective
Top level of management
Shop floor level of a factory
2. Basis of formation
Personal experience
Observations and experimentation
3. Focus
Improving overall administration
Increasing productivity
4. Unity of command
Fayol insisted on improving overall administration by developing such a unity of command and direction.
Taylor did not feel that it is important a under functional foremanship a worker received orders from eight specialists.
5. Applicability
Applicable universally
Applicable to specialized situations
6. Personality
Practitioner
Scientist
7. Expression
General Theory of Administration
Scientific Management

Taylor’s principles of scientific management and Fayol’s principles of management are mutually complementary.
    Reasons for this view are given below :—
1.            The aim of the principles of both Taylor and Fayol is the same, i.e., to maximize efficiency of work and performance.
2.            Both sets of principles suggest mutual cooperation between employer and employees.
3.            Taylor and Fayol both advocate division of work and responsibility.
4.            Both of them have contributed immensely to the knowledge of management, which has formed a basis for further practice by managers.





4 comments:

  1. sir this is best explination.
    can you give me some business case study fo 12th CBSE student for examination practice.?

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  2. Sir I would be extremely thankful if you would answer the following question
    Which principle of Fayol is violated be Taylor's differential piece wage system?

    ReplyDelete
  3. Which principal or method introduces uniformity in materials, machines, tools and methods of work

    ReplyDelete