Prepared By

ANJANI WADHWA
G.D. GOENKA
A principle refers to a statement which reflects
the fundamental truth about some phenomenon
based on cause and effect relationship

Training Satisfaction

Cause Effect
Principles of management are broad and
general guidelines for managerial decision-
making and behavior.
 Management Principles vs. Pure Science

Newton
Henry Fayol
Principles Principles
Of Of
Management Pure Science

Flexible Rigid

Applied in absolute
Applied with creativity
manner
 Henry Fayol

Thinking before doing

Henry Fayol was born in France in 1841. He got degree in Mining Engineering in
1860 and started working as engineer in a Coal Mining Company. In 1888 he was
promoted as the managing director of the company.
At that time the company was in the situation of insolvency. He accepted the
challenge and applied his managerial technique to bring out the company from
this situation and he succeeded.
When he retired after 30 years the company was a leading coal-steel company
with strong financial background.
 ons and
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ACRONYM
DAD U C USSR?
O I SEE
D- DIVISION OF WORK
A- AUTHORITY AND RESPONSIBILITY
D- DISCIPLINE
U- UNITY OF COMMAND
C- CENTRALISATION AND DECENTRALISATION
U- UNITY OF DIRECTION
S- SUBORDINATION OF INDIVIDUAL INTEREST
TO GENERAL INTEREST
S- SCALAR CHAIN
R?- REMUNERATION OF EMPLOYEES
O- ORDER
I- INITIATIVE
S- STABILITYOF TENURE OF PERSONNEL
E- EQUITY
E- ESPIRIT DE CORPSE
According to this principle the whole work must be divided into small
tasks and instead of assigning the whole work to one person only one
task of work should be assigned to one person according to his capability,
qualification and experience of the person.

When a person will perform a part of job again and again he will become
perfect and specialised in doing that job and the efficiency level will
improve.
1. DIVISION OF WORK
 Consequences
of this
Positive
principle
Effects of
this
principles

There will be
There will not
Improve duplication
Specialisation be
Efficiency and
specialisation
confusion
POSITIVE EFFECTS AND
CONSEQUENCES
POSITIVE EFFECTS-It will increase specialisation .
It will increase efficiency.
It will reduce workload of superiors.

ADVERSE EFFECTS - There will be no specialisation.

It will reduce efficiency of work.
Chance of duplication and confusion will be there.
Authority means power to take decision right to give orders to
the subordinates . Responsibility means obligation to complete
the job assigned on time. According to this principle there must
be balance between the authority and responsibility.
Excess of authority without matching responsibility may bring negative
results and excess of responsibility without matching authority will not
allow the worker to complete the job on time. There is need to bring parity
between both for best results.
IF DISPARITY OCCURS
AUTHORITY> RESONSIBILITY= MISUSE OF
POWERS

AUTHORITY<RESPONSIBILITY=NON
COMPLETION OF WORK

 eg- the production manager asks the formen to

produce 250 scooters everyday but he doesnot give
him the authority to procure the tools and material
from stores department.The formen is not able to
achieve the target. the manager cannot blame the
foremen.
 Consequences
of this
Positive
principle
Effects of
this
principles

Helps in Misuse of
meeting authority due Delay in
No misuse of
responsibilities to excess Work
authority
on time without authority
delay
 POSITIVE EFFECTS AND
CONSEQUENCES IF VIOLATED
POSITIVE EFFECTS:-There will be no misuse of authority.
It will help to fulfil responsibility in time.
It will help in creating accountability.
ADVERSE EFFECTS:- 1. Misuse of power due to excess
authority.
2. Overburden with work due to more
responsibilities.
3. Delay in work or in completion of work
due to less authority.
Discipline refers to general rules and regulations for systematic working
in an organisation. Discipline does not mean only rules and regulations
but it also mean developing commitment in the employees towards
organisation as well as towards each other.
Fayol insists that discipline is required at superior as well as subordinate
level. The disciplinary rules shall not be applicable only on subordinates.
Employees will obey orders only when management play their part by
providing good leadership.
 3. DISCIPLINE
Discipline means obedience to rules and employment agreement
which are necessary for working for the organisation.
It is necessary for the smooth functioning of the organisation and
must be apply to all individuals at all level.
According to Fayol discipline requires:-
1.Good superiors at all levels .
2.Clear and fair agreements.
3.Judicious application of penalties.

Discipline when applied it means the workers and management both

honour their commitments without any prejudice towards one
another.
 Consequences
of this
Positive principle
Effects of
this
principles

Systematic Wastage of
Disorder,
working in Improve resources in
confusion
the Efficiency absence of
and chaos
organisation discipline
 POSITIVE EFFECTS AND
CONSEQUENCE IF VIOLATED
POSITIVE EFFECTS- Smooth functioning of organisation is
ensured.
Higher efficiency is achieved.
Cooperation of the employees is ensured,

ADVERSE EFFECT- Rules and regulation will be not followed.

There will be confusion, chaos because of
indiscipline.
No cordial relation between workers and employers.
According to this principle an employee should receive orders from one
boss only because if he receives order from more than one boss then he
will get confused and will not be able to understand that whose order
must be executed first and on the other hand, if employee is receiving
orders from more bosses he gets chance to give excuses by saying that
he was busy in executing the orders of other boss.
If there are more bosses it can create problem of ego-clash among the
superiors as every superior wants his order to be executed by the
employee.
 4. UNITY OF COMMAND
 According to Fayol there should be one and only one boss for
every individual employee.
 Principles says that in any formal organisation one individual
subordinate should receive order from only one superior for
smooth functioning.
 If not followed Authority will be undermined(less effective),
discipline will be in jeopardy(in danger),order will be disturbed,
stability will be threatened and loyalty of worker will be denied.

 One subordinate will be not able to carry out order of two boss at
the same time properly. Efficiency and effectivenness of both the
work will decrease and subordinate will have to suffer along with
organisation work.
 Consequences
Positive of this
Effects of principle
this
principles

Improve Confusion in Difficulty in

No ego
Effectiveness the mind of maintaining
clashes
in working employees discipline
ØAccording to this principle the interest of organisation must supersede
the interest of individuals or employees. In the organisation all the
employees are working with some objective and there is always an
objective of organisation. If the objectives of individuals are in the same
directions than there is no problem but if the objectives of both the group
are in different direction than manager must try to reconcile individual
interest with organisational goal and if it is not possible than individual
interest must be sacrificed for achieving organisational goal.
5. SUBORDINATION OF INDIVIDUAL
INTEREST TO GENERAL INTEREST
The interests of an organisation should take priority over the
interest of any individual employees.
Every worker has some individual interest for working in a
company.
The interest of the group/company will supersede the interest
of individual.
Large interest of stakeholders and workers are more important
than the interest of any one person.
Worker/employees want maximum wages/salaries whereas
company wants more earning/profit. There interest clashes.
Company’s benefits is always more then employees interest.
 Consequences
of this
Positive principle
Effects of
this
principles

Coordination
Achievement No Even
between
of achievement of employees
individual and
organisational organisational will suffer in
organisational
goal goal long run
goal
ØAccording to this principle “one unit means one plan”, that is the efforts
of all the members and employees of organisation must be directed
towards one direction that is the achievement of common goal. If this
principle is applied it leads to coordination.
ØEach department and a group having common objective must have one
head and one plan only. People engaged in the same kind of activities
must have the same objectives in a single plan. This is essential to ensure
unity and coordination in the enterprise.
 6. UNITY OF DIRECTION
According to Fayol ‘One head one plan’. It means one unit
should have common objective so can focus on one direction
only.
It means that efforts of all employees and all department must
be directed towards one direction that is achievement of
organisation goal/target.
This principle leads to unity of action and better coordination.
Duplication of efforts and confusion can be avoided by
applying this principle.
All the department of the organisation should move towards
the same objectives through coordination and focussed efforts.
EXAMPLE
IF A COMPANY IS MANUFACTURING
MOTORCYCLES AND CARS, THEN IT SHOULD HAVE
TWO SEPARATE DIVISIONS. EACH DIVISION HAS
ITS OWN INCHARGE, PLANS AND RESOURCES.
THE WORKING OF BOTH SHOULD NOT OVERLAP
ON ANY ACCOUNT.
 Consequences
of this
Positive principle
Effects of
this
principles

Achievement Efforts of all Difficulty in

of employees get achieving Lack of
organisational unified towards organisational coordination
goal one direction goals
According to this principle employees in the organisation must be paid
fairly or adequately to give them maximum satisfaction. The
remuneration must be just and fair because if employees are underpaid
they will not be satisfied and an unsatisfied person can never contribute
his maximum.
Dissatisfaction will lead to increase in employee’s turnover. So to have
stability in organisation and to get maximum efforts from employees, the
employees must be paid fairly.
7. REMUNERATION OF PERSONNEL
 Remuneration should be just, fair and equitable.
 Remuneration of work should be fair to both employees and
employers.
 Employees should be paid fair wages, which should give at least a
reasonable standard of living.
 At the same time it should be within the paying capacity of the
company.
 If employees will leave company ,appointment of new employee
will be a costly process due to recruitment, selection and training
to new employee.
 Fair and just payment will create and maintain
congenial(pleasant) atmosphere and good relations workers and
management.
 It will give satisfaction to both employees/worker and employers.
 Consequences
of this
Positive principle
Effects of
this
principles

Devotion and Dissatisfaction

Increase in
Employees get commitment of &
turnover of the
motivated employees demotivation
employees
improves of employees
Centralisation refers to concentration of authority or power in few hands
at top level. Decentralisation means evenly distribution of power at every
level of management. According to Fayol a company must not be
completely centralised or completely decentralised but there must be
combination of both depending upon the nature and size of the
organisation, ability of subordinates.
A small organisation can be well organised and managed with centralised
technique but in large organisation there is need for centralised.
• According to the Fayol a company must not be completely
centralised or completely decentralised but their must be
combination of both centralised and decentralised.
..
• Centralisation means concentration of authority at the top
level in the organisation and it involves top level only.

• Degree of centralisation will depend upon the

circumstances in which the company is working..

• On the other hand Decentralisation means dispersal of

authority to the lower levels in the organisation and it
involves sharing of authority at all levels of management.
Quoting lines
'' EVERY THING WHICH INCREASES THE
IMPORTANCE OS SUBORDINATES IS
DECENTRALISATION.

EVERYTHING WHICH REDUCES IT IS

CENTRALISATION.

EG- panchayats system in our country is a good

example of decentralisation at national level.
 Consequences
of this
Positive principle
Effects of
this
principles

Fast decisions
Benefits of
and strict
centralisation as Delay in Misuse of
control by
well decision authority
optional & top
decentralisation
level
Scalar chain means formal line of authority or chain of superiors from
highest to lowest rank. Fayol insists that this chain must be followed
strictly in the organisation for communication. Every information must
pass through every key of this chain, no skipping of any one key should
be allowed.
If this chain is broken then there are chances of communication gap in
the organisation but sometimes following scalar chain becomes a long
process and if some important information has to be passed, it get
delayed so in case of emergency and urgent information, Fayol permitted
a short cut in chain which is called “Gang Plank”.
 9. SCALAR CHAIN
(The formal lines of authority from highest to lowest ranks are
known as Scalar chain)
In the given diagram of hierarchy ‘A’ is the main head who has
two lines of authority under her/him. One line consists of B-C-D-
E-F and other line is L-M-N-O-P. If F has to communicate with P
who is at the same level of authority.Then he/she has to take the
route F-E-D-C-B-A-L-M-N-O-P.This is due to SCALAR CHAIN.
GANG PLANK
 If there is emergency then ‘F’ can
directly communicate with ‘P’,
which is the shorter route and is
provided so that communication
is not delayed. This shorter route
is called Gang Plank.
 “According to the Fayol gang
plank should not be a normal
practice as it undermines the
established lines of authority.

(Bridge---Gang plank)  it is an exception to scalar chain.

 Consequences
of this
Positive principle
Effects of
this
principles

No No clarity in
Systematic There may be
communication authority
flow of communication
gap in the responsibility
information gap
organisation relationship
In this principle order does not mean command but it refers to orderly
arrangement of men and material that is a fixed place for everything and
everyone in the organisation.
Fayol insists that there must be a fixed place to keep every thing used in
the organisation and fixed place or seat or cabin for every employee of
the organisation so that no time and energy is wasted in search of any
material or any person.
 Consequences
of this
Positive principle
Effects of
this
principles

No wastage of Wastage of Unable to

time in search Smooth/systematic time & energy contact the
of operation in search of people at the
men/material men/material right time
This principle sates that workers performing similar job should be provided with
same working conditions, wage rate and incentives. There should be no
discrimination against anyone on account of sex, religion, language, caste, belief
or nationality etc.
“Good sense and experience are needed to ensure fairness to all employees, who
should be treated as fairly as possible,” according to Fayol. Employees will put
their maximum efforts only when they are treated with kindness and justice.
Equity does not mean equal salary to a peon and supervisor but equity means
application of same disciplinary rules in the same way irrespective of their grade,
position and gender.
 11. EQUITY
According to Fayol” This principle focus on kindliness
and justice in the behaviour of manager towards workers”.
Good sense and experience are needed to ensure fairness
to all employees.
There should be no discrimination and impartial on the
basis of sex, caste, religion, language, belief or
nationality etc with any employees by their manager.
Equal opportunities are available for everyone in
companies to rise.
Equal subordinate should get a fair treatment in matter
of reward or punishment.
Example:-The workers performing similar jobs should be
remuneration at the same wage rate.
 Consequences
of this
Positive principle
Effects of
this
principles

Dissatisfactio
Employees get Motivate the Increase in
n in
satisfied employees turnover
employees
It refers to no frequent transfer and termination of employees. According to this
principle the management must provide the feeling of job security among the
employees because with the feeling of insecurity for the job, the employees can
not contribute their maximum. Frequent termination of employees is bad for
organisation and such decision must be taken when they are almost unavoidable.
Not only termination but frequent transfer or rotation should also be avoided
because it takes some time to a person to learn and get settled on a job and by
the time he get settled and he receives transfer order then it will be wastage of
resources and employee will not be able to contribute his best for organisation.
Personnel should be selected and appointed after due and rigorous procedure.
But once selected they should be kept at their post/position for a minimum fixed
tenure. They should have stability of tenure.
12. STABILITY OF PERSONNEL
According to the Fayol personnel should be selected and appointed
after due and rigorous procedure.
According to this principle” Employees once selected, should be
kept at their post/position for a minimum fixed tenure” ie they
should have stability of tenure.
They should be given reasonable time to show results.
Any adhocism (temporary) can create instability/insecurity in the
mind of personnel .They will tend to leave the organisation.
The employee should not be rotated on different jobs very
frequently as minimum time period should be given to prove.
In the case employee leave the job it will incur high cost for
organisation as cost on recruitment, selection and training is high.
LABOUR TURNOVER SHOULD BE MINIMISED.
 Consequences
of this
Positive principle
Effects of
this
principles

Improves Wastage of
Dissatisfaction
efficiency No wastage of resources in
among
level of time/resources learning the
employees
employees new job
Initiative means taking the first step with self-motivation. It is thinking out
and executing the plan. Fayol suggested that employees in the
organisation must be given an opportunity to take some initiative in
m aki n g a n d e x e c u t i n g a p l a n . S o m a n a g e r s m u s t w e l c o m e t h e
suggestions and ideas of employees before framing the plan.
But it does not mean going against the established practices of the
company for the sake of being different. A good company should have an
employee suggestion system whereby initiative/suggestions which result
in substantial cost/time reduction should be rewarded.
13. INITATIVE
Initiative refers to taking the first step with self-motivation.
Fayol suggest that employees in the organisation must be
given an opportunity to take some initiative in making and
executing a plan.
Initiative does not mean going against the established
practices of the company.


.
Example:-For new project in the company, the subordinates
encouraged to give suggestions. This would motivate the
employees to achieve new project target.
 Consequences
of this
Positive principle
Effects of
this
principles

Employees will
Develops Employees Demotivation
not work to the
feeling in achieve the among the
best of their
employees target on time employees
ability
According to this principle management should promote a team spirit of
unity and harmony among employees. Fayol insists on team work. He
suggested that every employee in the organisation must consider him as
a part or member of a team and try to achieve the team goal. Management
must develop a feeling of belongingness among the employees. A
manager should replace ‘I’ with ‘We’ in all his conversations with workers
to foster team spirit. This will give rise to a spirit of mutual trust and
belongingness among team members. It will also minimise the need for
using penalties.
 14. ESPRIT DE CORPS
(UNITY IS STRENGTH)

According to Fayol, management should promote team spirit

of unity and harmony among the employees.
This will bring coordination and cooperation in organisation.
A manager should replace ‘I’ with ‘We’ in all conversations
with the employees to foster team spirit.
This will give rise to mutual trust and belongingness
among team members.
It will minimise the case of penalties in any organisation.
Example:-A finance head of company assigns a project to his
subordinates and promise them team bonus for effective result.
By this employees will show greater loyalty and commitment
to their team.
 Consequences
of this
Positive principle
Effects of
this
principles

Develops team Achievement of Team goal may

No team sprit
sprit group goal not be achieved
 Scientific Management

The Scientific Management approach was suggested by Frederick

Winslow Taylor in the twentieth century. F.W. Taylor was born in 1856 in
U.S.A. In 1878 he joined Midval Steel Company as a Mechanical Engineer.
Using his engineering background Taylor set out scientific studies and
techniques. Taylor ’s principles and techniques were based on
observations he conducted in factories. Taylor conducted a series of
experiments over a period of more than two decades. He experimented in
different fields to eliminate all types of wastage, increase the efficiency of
workers and provide for functional management.
 MEANING OF SCIENTIFIC
MANAGEMENT
Scientific management means the application of
science to management. It means conducting business
activities according to standardised tools, methods and
trained personnel in order to increase the output,
improve its quality and reduce the costs and wastes.

Taylor thought that by scientifically analysing work, it

would be possible to find ‘one bestway’ to do it.

Previously, managers relied on personal judgement in

attending to the problems they confronted in the course
of managing their work. This is what is referred to as
‘rule of thumb’ or ‘trial and error approach’.
 Taylor thought that managers should follow an
approach that was based on the method of science
defining a problem, developing alternative
solutions,anticipating consequences, measuring
progress and drawing conclusions.

In this scenario, Taylor emerged as the ‘Father of

Scientific Management.’

He proposed Scientific Management as opposed to

rule of thumb. He broke up human activity into
small parts and found out how it could be done
effectively, in less time and with increased
productivity.
Taylor also wanted that workers should cooperate with
the management and, thus, there would be no need of
trade unions.
The best results would come from the partnership
between a trained and qualified management and a
cooperative and innovative workforce.
Each side needed the other.

Scientific management means knowing

exactly what you want men to do and
seeing that they do it in the best and the
cheapest way.”
F.W. Taylor was the first person who insisted on the introduction of
scientific methods in management. That is why he is regarded as the
father of scientific management.

Taylor’s Contribution in the Development of Management

Taylor published books and research papers explaining his

scientific view on industrial organisation and management.

His major contribution was publishing of “Shop Management”,

“Piece Rate System” and Principle of Scientific Management”.
He emphasised on adoption of scientific methods to solve the
problem of management.
Principles of Scientific Management

Science
not Rule
of Thumb

Develop
ment of Principles
workers of Harmon
to their Scientific y not
greater Manageme discord
efficienc nt
y

Coopera
tion not
Individu
alism
 1. Science, not Rule of Thumb

Thinking before doing

According to this principle Taylor insists that each job performed

in the organisation should be based on scientific enquiry and not
on intuition, experience and hit and miss methods. He says that
there must be thinking before doing which is not in case of rule of
thumb.
Rule of thumb means dictatorship of manager whereas scientific
decisions are based on cause and effect. Taylor believed that there
is only one best method to maximise efficiency. This method can
be developed through scientific study and analysis of each
element of a job. The method so developed should be substitute of
Scientific method involved investigation of traditional
methods through work study,unifying the best practices
and developing a standard method, which would be
followed throughout the organisation. This can result in
tremendous saving of human efforts, time and
materials. The more sophisticated the process, greater
would be the savings.

For example, in case of rule of thumb the standard time

required to do a particular job is fixed by the manager
on the basis of his own past experience.
Tayloremphasised that standard time for a job should
be decided by analysing the work scientifically by
performing time study in the enterprise and then the day’s
target should be fixed.
2. Harmony, not Discord(conflict)

According to this principle those who work together

in an organisation must work in harmony that is with
mutual give and take and proper understanding.
Generally in every organisation there are two groups
of people –workers group and management group
and both the groups work as rival to each other. In
this principle Taylor insists that there is need for
both the groups to change their attitudes of each
other.
Taylor insists on mental revolution.
Mental revolution involves change in the
attitude of workers and management
towards one another from competition to
cooperation.

In Japanese companies, there is complete openness

between the management and workers. Usually,
workers don't go on the strike but, if at all workers go
to strike they just wear a black ribbon to show their
dissatisfaction and work more than normal working
hours just to gain the sympathy of the management.
• Management should share the gains of the
company with workers. Workers on their part should
work hard and be willing to embrace change for the
good of the company.
• Both should be part of the family.
• According to Taylor, “prosperity for the
employer cannot exist for a long time
unless it is accompanied by prosperity for
the employees and vice-versa.”
• For example, the main objective of workers is to earn
more whereas the objective of management is to
produce maximum.
• Instead of discord for each other’s objectives
workers can earn more by producing more which
will help in maximising production also.
 3. Cooperation not Individualism

This principle is the extension of the harmony not

discord. According to this principle workers and
managers must work in cooperation. The
management must take workers in confidence
b efo re setti n g u p th e s ta n d a r d ta s k fo r th e m
because when standards or targets are set up in
consultation of workers, then they will try their best
• Competition should be replaced by
cooperation. Both should realise that they
need each other.

• For this, management should not close its

ears to constructive suggestions made by
employees but should reward them for their
suggestions which result in substantial
reduction in costs.
• For all important decisions taken by the
management, workers should be taken into
confidence.
§ At the same time, workers should not go for strikes
and should not make unreasonable demands on
the management.
§ In such a situation, there will be open
communication system and goodwill, and there
will be no need for even a trade union.
§ According to Taylor, here should be an almost
equal division of work and responsibility between
workers
§ Management should work almost side by side

§ This is called ‘Paternalistic style’ of management,

whereby the employer takes care of needs of
employees.
 4.Development of workers to their
greatest efficiency and prosperity

Industrial efficiency depends upon the efficiency of

workers. Worker’s efficiency depends upon proper
training and their selection. Taylor insisted on due care
should be taken while selecting the employees and
after selecting they must be given job according to their
qualification.
Employees must be sent for training from time to time
to update their knowledge. This will ensure greatest
efficiency and prosperity for both company and
§ Taylor was of the view that concern for efficiency
could be built in right from the process of
employee selection.
§ Each person should be scientifically selected.
§ Then work assigned should suit his/her physical,
mental and intellectual capabilities.
§ To increase their efficiency, they should be given
the required training to learn the ‘best method’.
§ Efficient employees will produce more and earn
more.
§ This will ensure the greatest efficiency and
prosperity for both company and workers.
 TECHINQUES OF SCIENTIFIC
MANAGEMENT
FUNCTIONAL FOREMANSHIP
STANDARDISATION AND SIMPLIFICATION OF
WORK
WORK STUDY- a) Method Study
b) Motion study
c) Time Study
d) fatigue study
vDIFFERENTIAL PIECE WAGE SYSTEM
1. Functional Foremanship
 In the factory system, foreman is the pivot around whom
revolves the entire production planning, implementation and
control.
 Thus, Taylor concentrated on improving the performance of this
role in the factory set up. According to Taylor, a foreman should
have intelligence, education, tact, judgement, special knowledge,
honesty, energy and good health.
§ Since all these qualities could not be found in a single person
so Taylor proposed eight specialists. Each specialist is to be
assigned work according to his/her qualities.
§ For example, those with technical mastery and
intelligence may be given planning work. Those with
energy and good health may be assigned execution
work.
1. Functional Foremanship
 WORKING
Ø Functional foremanship is an extension of the principle
of ‘Division of Work and Specialisation’ to the shop floor
level of a factory.
Ø Each worker will have to take orders from eight foreman
in the related process or function of production.
Ø Taylor advocated separation of planning and execution
functions.
Ø Under the factory manager, there was a planning incharge a
and a production incharge.
Ø Under planning incharge, four foremen would concentrate
on planning the job of workers.
Ø Under production incharge, four foremen would involve
themselves in execution of job.
 Planning Department

Route Clerk: This foremen is responsible to fix up the sequence of steps

for performing mechanical or manual job.
Instruction Card Clerk: This foremen is responsible for giving instructions
necessary to carry on the job in a specified manner.
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.

Disciplinarian: This foreman is responsible for performance of job in

orderly and systematic way.
 Foremen under Production Department
Gang Boss: He arranges all the machines, tools and other resources
required for performance of the job so that there is no delay.

Speed Boss: This foreman assures

timely completion of job.

Repair Boss: This boss ensures that machines and tools are kept in
working conditions.
Inspector: This boss keeps a check on quality control of the output.
2.Standardisation and Simplification of Work

Standardisation
Standardisation of work refers to the process of setting
standards for every business activity.
e.g.,standardisation of process, raw material, time,
product, machinery, methods or working conditions.
These standards are the benchmarks, which must be
adhered to during production.
Objectives of standardisation of work are :
• To reduce a given line or product to fixed types, sizes and
characteristics.
• To establish standards of excellence and quality in materials.
• To establish standards of performance of men and machines.
Simplification of work aims at eliminating superfluous
(unnecessary) varieties, sizes and dimensions of
products.
It implies reduced inventories, fuller utilisation of
equipment and increased turnover.
It results in savings of cost of labour, machines and
tools.
 3. Work Study
Work Study: It refers to a systematic study of every aspect of a
work to reduce cost and effort and to increase efficiency and
productivity. Work study includes the following techniques:

a) Method Study: It is concerned with the study to know the best

method of doing a particular job. Its object is to minimize the
production cost and maximum use of resources of the
organisation.
Taylor suggested that method of production should not be decided
by rule of thumb method but all the method must be tried in the
organisation and the one which brings maximum benefit with
minimum cost be selected.
Motion Study: It is concerned with the
study of movement of a worker and
machines to perform a particular job.
The objective is to eliminate useless
motion and thereby avoid wastage and
i n e f f i c i e n c y. It d e t e r m i n e s t h e
standard number of movements of an
average worker to perform a specific
job.
In recent times, videography can be used to identify different types of
motions.
On close examination of body motions, it is possible to find out different
types of motions-productive, incidental (e.g., going to stores) and
unproductive.

For example,
if it is observed through motion study that worker has to move
frequently for taking tools from tool box, then such wasteful movements
can be eliminated by keeping the tool box near the worker. It will
increase the productivity as well as efficiency level of the worker.
Fatigue Study: Fatigue means tiredness. Fatigue study is
the study of the amount and frequency of rest intervals
required in completing a work. Fatigue may be physical
or mental. Tired worker will reduce the efficiency and
rest time may be granted to recoup the energy.

If the work involves heavy

manual labour, then small
pauses have to be frequently
given to the worker so that
he/she can recharge his/her
energy level for optimum
contribution.
4) Differential Piece wage system: Wage rate should be fixed
in such a way that an average worker is induced to attain
standard output.
§ Taylor suggested the payment of wages on the basis of
performance and not on time.
§ Under differential piece rate system, Taylor advocated two
rates of wages to an employee on the basis of their efficiency.
He suggested a higher rate to a worker who produces
standard output or more and lower rate for those who
produce less than the standard output.
§ Higher wages is an incentive to a worker to reach at or above
standard.
Significance of Principles of Management
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