Chapter 2 Principles of Management

3. Answer the following questions in short :

1. What is scientific management?
Answer:

Certainly! Here’s a rephrased version of the paragraph:

F.W. Taylor defined scientific management as “knowing exactly what you want your worker to do, and then ensuring they do it in the best and most cost-effective way.” Scientific management represents a mental shift that benefits factory workers, emphasizing their tasks, responsibilities, and the roles of their colleagues and employers.

Taylor proposed the following key principles for implementing scientific management:

• Each worker should be given tasks suited to their physical and mental capabilities.

• Workers should be guided to perform to their maximum potential within their designated role.

• Employees who work efficiently and quickly should receive 30% to 100% higher wages as an incentive.

2. What does the principle of equality?
Answer:

Certainly! Here’s a rephrased version of the paragraph on Equality:

Equality:

Employees form an integral part of the management system.
Since they are human beings, the management should treat them with empathy and adopt a fair and humane approach.
Superiors should interact with subordinates in a respectful, consistent, and impartial manner while assigning tasks.
Efforts to ensure equality within the organization should come through informal understanding and fairness, rather than relying solely on legal or traditional means.
This principle emphasizes that employee behavior is influenced by trust, attitude, consistency, and a sense of justice within the organization.

3. ‘Principles of management are flexible – Suggest.
Answer:

Flexibility:

Management principles are not fixed or rigid; they can be modified based on the specific needs of the business.
For instance, in large organizations, the principle of division of work can be implemented consistently across departments.
However, in smaller firms, it might not be practical to apply this principle to the same extent.
Therefore, managers in smaller units may need to adjust or adapt the principle according to the organization’s requirements.

4. In to which six parts, Henry Fayol divided his entrepreneur activities – Explain.
Answer:

enri Fayol was a French engineer and an industrialist. He contributed much in the management thoughts and principles.
In 1961, he gave 14 principles of management. He presented these principles in his book ‘Industrial and General Management’.
For better management, ease and clarification of these 14 principles he divided activities of industrial units in 6 parts. The six parts are:
Industrial activity Inclusions

5. Answer the following questions in detail :

1. Describe the principles of scientific management.
Answer:

Principles of Scientific Management as given by Fredrick Taylor:

1. Scientific method:

• Traditional approaches should be set aside in favor of scientific methods for performing tasks. Managers should focus on analyzing work systematically to determine the most efficient and effective way to complete it.

2. Planning and Implementation:

• Rather than allowing workers to handle both planning and execution, plans should be prepared by experts, and workers should focus on carrying them out.

3. Job analysis:

• Before beginning any task, it is essential to thoroughly analyze the work to be done. This approach ensures faster completion and reduced costs. Job analysis should include time studies, motion studies, and fatigue studies. These practices help lower production costs and boost overall productivity.

4. Standardization:

• Products and processes should be standardized and simplified to ensure consistency and minimize rework. This helps in delivering goods or services with uniform quality and specifications. Standardization and simplification can be applied to equipment, time management, work environment, resources, and more.

5. Scientific selection and training:

• Employees should be chosen using proper and scientific selection methods. Before recruitment, clear standards should be established regarding education, skills, physical ability, training, and other qualifications. Each worker should be assigned tasks that align with their qualifications and expertise. Regular training should be provided to enhance their performance. Additionally, various scientific tests should be developed and applied to assess their work interests and capabilities.

6. Financial motivation:

• Competent and skilled workers should be rewarded through financial and non-financial incentives. Various wage systems have been suggested to encourage employee motivation. The wage structure should be determined based on the individual performance and productivity of each employee. It should not be set arbitrarily or based on assumptions, but rather through a well-researched and scientific approach.

7. Economical measures:

• When applying scientific management, equal emphasis should be placed on economical management methods alongside scientific and technical approaches. The organization should focus on achieving low-cost production as well. Cost estimation and cost control techniques must be carefully planned in advance. Additionally, if any discrepancies arise between the estimated costs and actual implementation, appropriate corrective measures should be taken.

8. Mental revolution:

• A mental revolution should occur between owners and workers to successfully achieve objectives.

  This mental shift helps lessen tension between them and facilitates the smooth attainment of goals.

2. Describe in detail about classical thoughts.
Answer:

Thoughts of Classical Theory:

• The management ideas developed up to the late 19th century are referred to as the classical theory of management. Key contributors to this theory include Frederick Taylor, Max Weber, Gilbreath, Henry Gantt, and Henri Fayol.

• Among these contributors, Frederick Taylor’s work holds particular significance.

• The principles of scientific management introduced by Taylor continue to influence management theories even today.

• Scientific management emphasizes the use of scientific methods such as time and motion studies, rather than relying on traditional practices. It has significantly contributed to areas like specialization in management, progressive wage systems, clearly defined responsibilities, and the scientific allocation of tasks.

• Henri Fayol also made important contributions to classical management theory. He formulated several general principles of management.

• Fayol categorized various business tasks into levels and aimed to establish boundaries for each task.

• Additionally, he introduced universal management principles that serve as guidelines for managerial responsibilities at different organizational levels.

• Max Weber contributed to classical theory as well. By the late 19th century, industries were expanding rapidly due to the industrial revolution. However, classical theory became less effective for managing these larger enterprises, highlighting the need for new approaches that focused more on financial motivation, reduced emphasis on human relations, and less attention to informal interactions.

3. Describe Henry Fayol’s principles of management.
Answer:

Henri Fayol’s Principles of Management:

Drawing from his extensive experience and knowledge, Henri Fayol introduced 14 fundamental principles of management. These principles are:

• Division of Work:

  • Management emphasizes improving the efficiency of both employees and managers. Division of work is a key method to achieve this. While productivity increases through optimal use of production equipment, dividing work also boosts employee and managerial efficiency. Fayol stressed that division of work leads to specialization, enhancing productivity. This division should occur both at managerial and operational levels to fully benefit from specialization.

• Authority and Responsibility:

  • Authority (power) and responsibility are inseparable and complement each other. When an individual is given responsibility for a task, they must also have the authority to execute it. Assigning authority should consider factors such as the employee’s position, knowledge, qualifications, experience, leadership skills, and maturity. This balance motivates employees and supports the achievement of business goals.

• Discipline:

  • Discipline is essential for achieving business objectives effectively. It fosters a harmonious work environment. Maintaining discipline involves ensuring the proper use of equipment and consistent performance of tasks. Clear rules and codes of conduct help establish industrial discipline, making management easier—especially in large organizations. Supervision, clear agreements between workers and management, and consistent enforcement of rules and penalties are vital components of discipline.

• Unity of Command:

  • This principle states that an employee should receive orders from only one superior. Following commands from multiple superiors can cause confusion and disrupt discipline. Each employee must be accountable to only one manager or department for a specific task to avoid misunderstandings and maintain order.

• Unity of Direction:

  • Planning guides the future course of action. If activities stray from the plan, they must be redirected by a superior to ensure coordination. According to this principle, a single manager should direct a group of employees toward one clear objective, ensuring that efforts are unified and well-coordinated.

• Subordination of Individual Interest to General Interest:

  • The overall interest of the organization should take precedence over individual or group interests. Managers should align personal goals with organizational objectives so that both are achieved efficiently and effectively.

• Remuneration of Personnel:

  • Remuneration refers to the compensation employees receive for their work. Fayol believed that fair and adequate wages strengthen the relationship between employers and employees. Since employees vary in efficiency, those performing better should receive higher pay or rewards. This approach promotes loyalty and reduces turnover. Additionally, organizations should implement incentive programs such as bonuses, profit-sharing, and representation in management committees.

• Centralization:

  • A business must determine the appropriate level of centralization or decentralization of authority. Centralization means retaining decision-making power at the top levels, which is suitable for smaller organizations to maximize strengths. Larger organizations benefit from decentralizing authority to improve management efficiency.

• Scalar Chain:

  • The scalar chain is the formal line of authority extending from the highest to the lowest ranks in an organization. This chain outlines how communication should flow, ensuring clear transmission of orders from superiors to subordinates and feedback in return. It must be strictly followed, with proper delegation and clarity on who reports to whom.

• Order:

  • Order’ refers to the proper arrangement of resources and activities. Fayol emphasized that everything should have its designated place to facilitate smooth operations and prevent waste. There are two types of order:
    (A) Material Order: Ensures all physical resources are correctly placed.
    (B) Social Order: Ensures employees are assigned to appropriate positions according to their roles and skills.

• Equality:

  • Employees are an integral part of the management system and should be treated with fairness and respect. Managers should adopt a humane approach, treating all subordinates consistently. Equality fosters trust, loyalty, and a positive work atmosphere.

• Stability of Tenure of Personnel:

  • Stability means minimizing frequent transfers, terminations, or changes in employees’ roles. Long-term employees are valuable assets, as their knowledge and experience enhance productivity and reduce labor turnover.

• Initiative:

  • Initiative means allowing employees to take the lead in planning and executing tasks. Providing opportunities for initiative encourages enthusiasm, independence, and leadership skills among workers.

• Esprit de Corps (Team Spirit):

  • Esprit de Corps refers to promoting unity and teamwork within the organization. Success depends on good relationships between managers and employees. Managers should foster a sense of belonging and cooperation, helping everyone work together efficiently toward common goals.

Henri Fayol also noted that this list of principles is not exhaustive. Managers can develop new principles based on their experience and research, applicable across various fields such as business, economics, politics, and social activities.

4. Describe in detail about Nature of management.
Answer:

Management principles are not rigid rules, but practical and adaptable guidelines meant to support decision-making and execution of various managerial functions like planning, organizing, and directing.

While these principles are generally accepted and widely applicable, they are not considered absolute truths—there can be exceptions depending on the situation. Experts agree that these principles serve as useful tools, but their implementation may vary across organizations.

From the study of management principles, the following key conclusions can be drawn:

1. Universally Applicable:
Management principles can be applied to a wide range of organizations across industries. They are relevant wherever teamwork or collective human effort is required. However, how these principles are applied may differ depending on the organization’s type, size, structure, and nature of activities.

2. Flexible in Nature:
These principles are adaptable and not fixed. Managers can adjust them according to the specific needs of their business. For example, while large organizations may implement the principle of division of work in a structured way, smaller businesses might need to apply it differently based on their limited resources or workforce.

3. General Guidelines:
Derived from the experiences of various experts in diverse situations, management principles offer general guidance rather than strict rules. Since each organization faces unique challenges—both simple and complex—what works well in one setup might not be as effective in another. Thus, these principles should be used as a framework for decision-making, not as rigid instructions.

4. Centered Around Human Behavior:
Human behavior plays a crucial role in management. Since employees are central to any organization, management principles must consider their psychological and behavioral aspects. The way these principles are applied can directly influence employee morale, motivation, and performance.

5. Contingency-Based Application:
The application of management principles often depends on situational needs or contingencies. For example, decisions such as setting fair wages depend on factors like market standards, employee needs, and company performance. This means management must adapt principles based on the circumstances to achieve business goals effectively.

4. Describe in detail about Nature of management.
Answer:

Nature and Key Features of Management Principles

Management principles are practical in nature and not inflexible. They serve as useful guidelines to carry out various managerial tasks effectively.

For instance, these principles help managers make appropriate decisions while performing core functions such as planning, organizing, and directing. While these principles are widely applicable and generally valid, they are not universal laws—there can be exceptions depending on specific situations.

From these principles, we can draw the following important conclusions:

1. Universal Applicability

Management principles are relevant across most organizations and business types. They can be applied wherever group efforts are required. However, their implementation may differ based on the nature, structure, size, and type of the business.

2. Flexibility

These principles are not rigid rules. Managers can modify or adjust them according to the changing needs of the business.
For example, the principle of division of work may be fully applied in large organizations, whereas in smaller setups, its application might be limited due to fewer employees.

3. General Guidelines

These principles are the result of real-life experiences of management experts.
They offer broad guidance rather than strict instructions. Since every business faces different challenges, a principle that works well in one case might not be effective in another. Therefore, they should be treated as suggestive frameworks, not fixed rules.

4. Human-Centric

Since management revolves around people, these principles are strongly influenced by human behavior.
Human behavior is dynamic and psychological, so applying these principles affects how employees behave in the workplace. Hence, managers must be aware of this while applying management techniques.

5. Contingency-Based Application

The application of these principles often depends on situational factors. Businesses can adapt and apply them as needed to achieve their goals.
For example, decisions such as setting fair wages depend on various influencing factors and circumstances, such as industry standards, employee needs, and business performance.