PRINCIPLES OF MANAGEMENT

ANSWER BRIEFLY

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 elsewhere 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 to 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 observes 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 affected 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 appoints new salesmen.

               In this case the principle of ‘Parity of Authority and Responsibility is violated.

               Authority means the right orders & obtains 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 

If authority is less, the subordinate will not be able to perform his duties well.

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 from highest to lowest ranks are known 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:

Smooth flow of communication in organization.

No communication Gap in the organization.

There will be unity of command in the organization

No confusion of Dual order.

Adverse effect:-

Authority responsibility relationship will not be clear

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 behavior 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 aims at increasing managerial efficiency.

               ® The aim of the principles of both Taylor’s and Fayol is the same, i.e. 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 an 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 tells 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.

Q.17 Are the principles of management given by Henry Fayol and F.W. Taylor are complimentary or supplementary to each other. Justify your answer.

Ans.  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.