Chapter 1: Principles of Management

What are the Techniques of scientific management? (8M)

1. Functional Foremanship- Splitting supervision, 4 for planning and 4 for production to maximize specialization.

2. Method Study- absolute and most efficient way to perform specific job to cut down costs.

3. Motion study- tracking and eliminating wasteful body or machine movements to save timer and energy.

4. Time study- stopwatch to determine the standard time required to finish a well defined task.

5. Fatigue study- planning the duration and frequency of rest breaks to prevent worker burnout and and maintain stamina.

6. Standardization- setting uniform quality benchmarks, tools, and environmental standards for every production process.

7. Simplification- eliminating unnecessary varieties, sizes, and dimensions of a product to save manufacturing and inventory costs.

8. Differential Piece-rate system- paying efficient workers higher per unit rates than inefficient workers to motivate higher productivity.

14 Principles of Henry Fayol? Explain in detail (8M)

1. Principle of division of work- specialise work to each person masters their task leading to efficiency and accuracy.

2. Authority and Responsibility- right to take decisions, necessary to get the things done appropriately from subordinates, authority always comes with the responsibility.

3. Discipline- result of effective leadership, clear understanding between the management and workers regarding the organisation’s rules.

4. Unity of command- each member should receive orders from only one superior.

5. Unity of directions- there should be one head and one plan.

6. Subordination of Individual Interest to Organisational interest- interest of an individual must be given less importance than the interest of the organisation

7. Centraization- concentration of powers and authorities, must be peoper balance between centralization and decentralization

8. Remunerations- keeping employees satisfied financially and retain them for long spam of time within the organisation

9. Scalar chain- hierarchy of authority from the top level to the lower level for the purpose of communication

10. Order- materials should be in right time and right place for maximum efficiency

11. Equity- management should be fair and friendly of the subordinates

12. stability of tenure- management should assure them about stability of tenure or job security

13. Initiative- volunteering to do the work in an innovative way

14. Team work- working as an union and with mutual trust

Nature of Principles of Management (4M)

1. Universal Application- principles of management are universal in nature, applied to all types of organizations.

2. Principles are formed by practice and experiments- developed with through research work

3. Flexible- principles are flexible in nature, changed or modified according to situation.

4. All principles are of equal importance

Techniques of scientific management (4M)

1. Standardization of Tools and Equipments- working Enviornment and methods of production help to reduce spoilage and wastage of material, cost of production, fatigue among the workers, improves quality of work.

2. Scientific task setting- prevent the employees from doing work much below their capacity

3. Scientific selection and training- select right persons for right jobs by using scientific selection procedures.

4. Functional organization- planning is separated from implementation.

Principles of Scientific Management

1) Science, Not Rule of Thumb: In order to increase efficiency of the organization, decisions should be basend on scientifically analysed methods rather than personal judgements.

2) Harmony, Not Discord: There should be harmony between employees and management. This coordination will help in minimizing conflicts between them.

3) Mental Revolution: Both employees and management need to change their attidues towards each other. Once they realise their equal importance the cooperation between the two will increase.

4) Cooperation, Not Individualism: Mutual cooperation between the workforce

5) Division o Responsibility: Proper division of work should be accompanied by proper division of responsibiltiies.

6) Development of each worker(to the fullest): Best performance of an organization always depends on the skills and capabilities of each employee. Thus proper training and development programmes should be provided.

Significance of Management Principles

1) Provides useful insights to managers: