Principles of Management Class 12 | Features | Scientific Principles | Chapter 2 |
Meaning of Principles of Management
Principle refers to a set of statements which shows the fundamental truths related to some relationship based on the Cause and Effect relationship. Therefore, Principle of Management is a fundamental statement which serves as a guide for making the decision and behavior of the manager through his actions and excuses.
Features of Principle of Management
- Universal Applicability: The management principles are applicable to all types of management whether small or large.
- General Guideline: It contains some guidelines which one can follow to solve the problem but these do not provide remedies for the solution. Overall, the management principles are not rigid.
- Comes after Practice and Experiment: It submerges different kinds of problems which are faced by a manager and comes up with the solution after a careful research of every outcome.
- Flexible in Nature: The management principles are not fixed which means they can be altered as per the situation and new principles can be formed on the basis of old principles.
- Defines Manly Behavior: It directly and indirectly guides and influences the behavior of the employees which shows its concern regarding the human behavior.
- Cause and Effect Relationship: Management principles are based on cause and effect relationship which specifies that what will be the outcome of a particular situation if any principle is applied to it at that time.
- Contingent: The management principles are contingent in nature which means that they are dependent on the situation which is prevailing in the organization.
Importance of Principle of Management
- Provides Useful insight into Reality to Managers: Management principles provide timely guidance to the managers so that the wastage of resources can be reduced and objectives of the organisation can be met efficiently.
- Better Utilisation of Resources: With the use of management principles, the resources within the organization can be optimally utilised and wastage can be avoided.
- Decisions are Scientific: The decision which are to be taken by the manager should be balanced that comes after a lot of experience.
- Meets Requirement of Changing Environment: The management principles help the manager to face the changes in the environment for the environment is dynamic in nature and keeps on changing with time.
- Social Responsibility fulfilment: The management principles increase the efficiency of the managers which helps in the overall development. Through one’s managerial skills one can make products at cheap price without compromising the quality of the goods.
- Management Training, Education and Research: Through theoretical knowledge, a manager gets education, he applies those skills in the practical life with training so that his job can be enriched.
Principles of Management (Fundamental)
Henry Fayol was born in 1841 in France. After getting a degree of mining engineer, he got to work in a big company whose financial books were not strong but with his managerial techniques, he brought out the company from the situation of insolvency and soon the company emerged strong financial books. During his tenure, he had also written a book named, General and Industrial Management wherein he defined all the fundamental principles. While making principles, he kept two things in mind; firstly the principles should be suggestive in nature and flexible in nature too.
Some Fundamental Principles of Management are as follow:
- Principle of Division of Work: It is also known as Principle of Specialisation. In this. whole work is divided into small parts so that work can be done effectively.
- Principle of Authority and Responsibility: Under this decision making, power is given to employees along with the answerability of the particular job work.
- Principle of Discipline: Under this, rules and regulations are made which are to be followed by everyone and breaking of such rules leads to penalty.
- Principle of Unity of Command: This principle is employee-oriented which states that a subordinate should receive command only from manager in order to lessen the confusion among them.
- Principle of Unity of Direction: This principle is organisation-oriented wherein whole work is divided into groups and for that one head is appointed who looks after the work done by the whole group.
- Subordination of Individual Interest to General Interest: This principle mentions that the personal interest or objective should not be within the organisational interest or objective for both of them are different and are to be performed differently.
- Remuneration of Employees: This principle says that a fair remuneration should be given to the employee for the type of work done by him.
- Centralisation and Decentralisation: According to this principle, the powers should not be completely centralised or completely decentralised. Therefore, the firm should choose an effective centralisation of power to work efficiently.
- Principle of Scalar Chain: The scalar chain shows the flow of communication from the different levels to the other level.
Note: When the information is flowing on the same level of the management in that case, it is known as Gang Plank.
- Order: This principle says that everything should be placed at a right place to avoid the wastage of time.
- Principle of Equity: The manager should treat every subordinate equally to establish dedication of work among them.
- Principle of Stability of Personnel: Under this, the management should remove the feeling of insecurity from the minds of the employee by fixing the period of service so that Labour Turnover rate can be increased.
- Principle of Initiative: According to this principle, a manager should listen to every employee and the plans which are to be made. The person whose plan results in cost and time reduction should be rewarded.
- Espirit De Corps: This principle says that a manager should continuously make efforts to develop Team-Spirit among the employees within the organization.
Meaning and Definition of Scientific Management
Scientific Management can be defined as application of science for each and every element of management so that production can be maximised and waste-time can be eliminated and that too at a minimum cost. These principles were given by Frederick Winslow Taylor (F.W. Taylor) in 1911 and is an updated version of fundamental principles.
Features of Scientific Principles
- Systematic Approach: It is completely based on science and facts which makes it a systematic approach.
- Use of Mental Mind: The main motive of the organization is to get the work done at less cost and time for that employees keep on challenging the present system which develops their mindset.
- Strict Observation of Rules: Under scientific management, all the rules and regulation are formed after a detailed analysis and study. Therefore, it requires a strict observation of the rules.
- Increases Efficiency of Workers: By conducting different kinds of techniques in the organisation, a report can be formed to utilize all the waste time and resources.
Principles of Scientific Management
- Science, not Rule of Thumb: This principle concludes that better plans are to be made every time so that efficiency in the work can be achieved and one should not stick to old methods.
- Harmony, not Discord: The importance of both labour and management is essential for the organisation therefore this principle says that an environment should be created where everyone is indispensable.
- Co-operative, not Individualism: All the activities in the organization are performed with a single objective of the organization. The objectives should not vary from person to person in the organisation.
- Development of Workers to their Greater Efficiency and Prosperity: According to this principle, right worker should be appointed at a right place so that the efficiency of the organization can be increased.
Techniques of Scientific Management
- Functional Foremanship: Under this technique, the factory should be divided into two departments for getting the work done. The classification of two departments along with their heads are as follows:
- Route Clerk: Specifies the route for production.
- Instruction Card Clerk: Drafts instruction for workers.
- Time and Cost Clerk: Prepares tie and cost sheet.
- Discipline Clerk: Ensures discipline in organisation.
Operational/ Production Department
- Gang Boss: Keeps machines and tools ready for operation.
- Speed Boss: Ensures timely and accurate completion of work.
- Repair Boss: Ensures proper working conditions of machines and tools.
- Inspector: Checks the quality of the work done.
- Standardisation and Simplification of Work: Different types of work should be assigned to different departments and standards are fixed for each departments so that unnecessary types of works can be put to an end and simplification of work can be done as much as possible.
- Method Study: It defines the most suitable way to perform an activity in an organisation for which charts and research technique is used.
- Time Study: It studies the standard time required for getting a job done and for fixing standards so that number of workers can be determined for a particular job work for which stopwatch is used.
- Fatigue Study: It studies the interval for rest and frequency of the job to complete it.
- Motion Study: It studies the movement of a work done for a particular job.
- Differential Piece Wage system: This system allows to pay different wages to different workers.
- Mental Revolution: According to this technique, there should be co-operation between the workers and management and their mindset should change towards one another.
You may also read Nature and Significance of Management, Principles of Management, Business Environment, Planning, Organising, Staffing, Directing, Controlling, Financial Management, Financial Market, Marketing Management & Consumer Protection Act for better understanding of the chapter and scoring higher in upcoming examination.
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