1. What is Management Principles ? What are the nature / characteristics of management principles?
Ans - Management of business is becoming more and more complicated . Managers are expected to deal with a number of problems in their day to day wok . Some guidelines are needed with the help of which managers can run the business smoothly and efficiently . Such guidelines which come to help of managers, are called principles of management .
Characteristics - 1. Based on Situation - The application of management principles depends upon a specific situation faced by a manager . He has to adjust the principle as demanded by a situation .
2. Flexibility - Management principles are flexible in nature . These can be modified and changed with the change in the environment of a business .
3. General Statements - Management principles are stated in the form of general statements . These have been derived out of experience and analysis .
4. Cause and effect relationship - Their is a cause and effect relationship in management principles . The effect of certain can be predicted on the basis of actions.
5. Universal Application - Management principles are universal nature . They can be successfully applied in different organisation at different places .
2. What are the importance / significance of principles of management ?
Ans- 1. Increases managerial efficiency - Management principles have been developed from the experiences of various professional people . The manager learn to solve problems in a methodological way without indulging in trial and error method .
2. Optimum utilisation of resources - Principles of management are designed to get maximum benefit form various resources . Thus saving of time , energy and efforts will help in making optimum use of human and other resources .
3. Proper decision making - Managers are required to take a number of decisions of the business . Management principles provide guidelines for taking correct decisions under different situations .
4. Adjusting to changing environment - Business environment keeps changing from time to time . Management principles train the managers in implementing the changes at a right and in a right directing .
5. Train managers - Management principles are needed to train managers . In the absence of principles , the training of managers will depend upon trial and error method.
3. Discuss about the Henry Fayol's principles of management ?
Ans - Henry Fayol was born in France in 1841 . He joined as a junior executive in 1860 in a mining company and rose the position of its chief managing director in 1888 . After that Fayol developed a general theory of management . In 1916 he published the book 'Administration Industriella Et Generale '. In French which was translated into English in 1929 . It was only in 1949 that thus book entitled 'General and Industrial Management was freely available in United States .
The 14 Principles of Fayol for running the business are as follows -
1. Principle of Division of Work - Division of work implies division of the total task in order to lighten the total burden and promotes specialisation in such a way that one person does only one thing rather than doing everything himself .
2. Principle of Parity between authority and responsibility - This principle states that authority and responsibility should go side by side . Authority without responsibility leads to irresponsible behaviour while responsibility without authority makes a person ineffective .
3. Principle of Discipline - Discipline means obedience , respect of authority and observance of the rules . Discipline is essential for the smooth running of business and without it no business can prosper .
4. Principle of Unity of command - This principle states that one person should receive orders from only one superior . In other words , one person should be accountable to only one boss . If one person is under more than one boss then their can be contradictory orders and the subordinate fails to understand whose orders to be followed .
5. Principle of Unity of Direction - The principle of unity of direction means that there should be one head and one plan for a group of activities having the same objectives . Each group of activities with the same objectives must have one plan to active and must be under the control of one supervisor .
6. Principle of subordination of individual interest to general interest - It is an essential function of management to make people realise the objectives of the group and direct their efforts towards the achievement of these objectives .
7. Principle of fair remuneration of workers - Fayol was of the view that the remuneration paid to the workers should always be judged and fair and should afford maximum satisfaction to both the employees and employers .
8. Principle of effective centralisation and decentralisation - Centralisation means concentration authority in the hands of few i.e. Top management . On the other hand decentralisation implies the dispersal of decision making power at lower level of management .
9. Principle of Scalar Chain - Scalar Chain refers to the chain of superiors ranging from the ultimate authority to the lowest ranks . Fayol felt that a hierarchy channel called the scalar chain is necessary to ensure unity of command and effective communication . Communication should follow through the established chain of command . However a 'Gang Plank ' may be created by passing the established line of authority to facilitate quick communication .
10. Principle of order - Principle of order doesn't mean command but it refers orderly arrangement of men and material , their is a fixed place for everything and everyone in the organisation .
11. Principle of Equity - Equity means justice and kindliness . Fayol was of the opinion that to encourage workers to fulfil their duties with devotion and loyalty , management should deal with employees equity based on kindness and justice .
12. Principle of Stability in the tenure of personnel - According to Fayol , to secure loyalty of workers , it is very essential to provide security of service to the workmen .
13. Principle of initiative - Initiative implies the power of thinking out a plan and ensuring its successful implementation and the managers should encourage the employees so that they show initiative .
14. Principle of E spirit De Corps - This principle implies that their should be cooperation and teamwork among the members of an organisation . The manager must always make a constant effort to ensure harmony and Espirit De Corps among his subordinates to achieve the organisational goal .
4. What do you mean by Scientific Management ? What are its features ?
Ans - Scientific Management implies the application of science to the management of a business concern . It stresses the need of replacing traditional techniques by scientific techniques . Scientific management in essence , is the art of knowing exactly what is to be done and the best way of doing it .
Features - 1. It is a systematic , analytical and objective approach to solve industrial problems .
2. It attempts to discover the best method of doing a work at the cheapest cost .
3. It implies scientific techniques in the method of work , recruitment , selection and training of worker .
4. It attempts to develop each men to his greatest efficiency .
5. It lays emphasis on all factors of production , men , material and technology .
5. What are the aims / objectives of Scientific Management ?
Ans - 1. Increase Production - In scientific management the rate of profit increases with the use of latest technologies .
2. Better quality goods - Since , new method of production used , the latest technology , the quality of goods automatically improves .
3. Cost Reduction - Since , scientific management also aims at increase production so cost of production goes down when scale of production goes up .
4. Right placement - Another aim of scientific management is to place right persons at right jobs through scientific selection and training of employees .
5. Elimination of waste - According to F.W. Taylor , their must be elimination of waste at every level of organisation .
6. What are the principles of scientific management ?
Ans - 1. Replacement of old rules of thumb method - Taylor wanted to replace old methods of doing work . He was of the view that planning and doing should be done by two separate persons.
2. Scientific selection and training of workmen - This principle suggests that the skills and trainings of workmen must match the requirements of jobs .
3. Cooperation between workers and management - Their should be closed cooperation between workers and management . This can be achieved only when there are no conflicts between the management and the workers .
4. Mental Revolution - There would be a complete mental revolution of outlook of workers and management in resect to their mutual relations and work efforts .
5. Equal Division of Responsibility - The management and workers should equally share the responsibility for running the enterprise efficiently . Management should undertake planning work, and the worker should concentrate on executing the plans .
7. What are the elements or techniques of scientific management ?
Ans - Taylor and his associates suggested the following techniques for practising scientific management -
1. Functional Foremanship - In this technique Taylor suggested the division of factory in two departments : planning department and production department as Taylor felt that workers must be free from the burden of planning and they must concentrate on work and production . As a result Taylor suggested that there must be eight foreman for each and every department . The following are the eight foreman for each and every department -
(a) Route Clerk - This foreman is responsible to fix up the sequence of steps for performing mechanical or manual job .
(b) Instruction Card Clerk - This foreman is responsible for giving general instructions necessary to carry on the job in a specified manner .
(c) Time and cost clerk - This foreman is responsible to fix up the time for starting and completion of job . He also prepares the cost sheet for every job .
(d) Disciplinarian - This foreman is responsible that each and everything is done according to discipline or not .
(e) Gang Boss - He arranges all the machine , tools and other resources required for performance of the job so that there is no delay .
(f) Speed boss - This foreman assures timely completion of job .
(g) Repair boss - This boss ensures that machines and tools are kept in working conditions .
(d) Inspector - This boss keeps a check on quality control of the output .
2. Standardisation- Scientific management always stresses the need of using standardised products in the organisation . All the products , qualities , quantities should be checked for standardised results .
3. Work Study - It ensures maximum production at minimum cost and getting best contribution from every factor . The following are the sub points of work study -
(a) Fatigue Study - This technique of scientific management is conducted to find out the frequency of rest interval , the duration of rest interval and the number of rest intervals.
(b) Method Study - The method study technique of scientific management is conducted to find out the one best method or way of performing the job which keeps production cost minimum and makes cost must be selected .
(c) Time Study - The technique of time study is conducted to determine how much the workers need time complete one form of task .
(d) Motion Study - The motion study is conducted to determine how much the workers makes their movements at the time when they are working .
4. Differential Piece Wage System - The Differential Piece Wage System stresses the need of how much wages should be provided to the workers according to their working capacity .
5. Mental Revolution -This study involves that how can we develop the mental personality of a worker by seeing the attitudes of the workers and the managers .
8. What are the benefits and limitations of scientific management ?
Ans - Benefits - 1. Increase in production - The scheme of scientific management involves planning of task and scientific methods of doing work , which results in the increase in production.
2. Reduction in cost of production - Scientific management consumes avoiding all types of wastages which reduces the cost of production .
3. Better quality products - Scientific management ensures better quality products through standardisation .
4. Mutual corporation between worker and management- Scientific management is concerned with the mutual corporation between management and workers .
5. Proper selection and training of workers - One of the essential elements of scientific management is proper selection , placement and training of workers .
Limitations - 1. Speeding up of workers - Workers feels that Scientific Management is nothing but a device to force workers to a greater speed .
2. Monotony - Under Scientific Management every workers is expected to perform his part of job due to specialisation which make the worker monotony .
3. Unemployment - It reduces , the number of resources and increases the hourly output / worker. Thereby , it creates unemployment by recruiting lesser number of workers .
4. Loss of worker skill and initiative - Worker feel that under Scientific management , they are reduced to the position of machines as the work methods are standardise , which reduces the working skill of workers .
5. Discrimination between workers - Under , Scientific management different worker get more wages as compared to the other , which create discrimination between workers .
