(CH 2) PRINCIPLES OF MANAGEMENT

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Q1. If the company does not provide the right place for physical and human resources, which principle
of management is violated?

Q2. Which device helps subordinates of the same level of different departments to communicate directly
in case of emergency?

Q3. The production manager of Harsh Ltd. instructs a sales man to go slow in selling the product, whereas
the marketing manager is insisting on fast selling to achieve the target. Which principle of
management is being violated in this case?

Q4. Which principle of management envisages that each group of activities must have one head and one
plan?

Q5. In a company, there are four separate departments for finance, marketing production and human
resource development. Identify the principle of management.

Q6. Name the principle of management which resembles military organization?

Q7. Which principle of management suggests that employees should be treated with justice and
kindness?

Q8. Which principle of management suggests that employees should not be moved from their positions
frequently?

Q9. Which principle of management is violated if an employee is asked to receive order from two
superiors?

Q10. Which spelling of the term is correct? 1)Principal or 2)Principle

Q11. Name that principle of Fayol which suggest that communication from top to bottom should follow
the official line of Command.

Q12. One of the fourteen principles of management, as suggested by Fayol, emphasis that there should be
a team spirit of unity and harmony in the work group. Name the principle.

Q13. Kanika and Priyanka are typists in a company having same educational qualification. Kanika is
getting Rs.16, 000 per month and Priyanka Rs.10, 000 per month as salary for the same working hours.
Which principle of management is being violated in this case?

Q14. Fayol points out the danger and costs of unnecessary labour turnover in one of his Principles. Name
the Principle.

Q15. Rishabh, a manager, very often speaks to people at all levels, passing on instructions regarding his
department and also the other departments. Which principle is being overlooked?

Q16. A sales person asked to finalize a deal with a customer. The marketing manager allows him to give a
discount of up to 10% but the finance manager allows him to give discount of up to 5% only. Which
principle is being overlooked?

Q17. What do you understand by principles of management?

Q18. Management principles are not the principles of pure science. Write any one difference?

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Q19. Give one point of difference between principles of management and techniques of management?

Q20. Give one point of difference between principles and values?

Q21. Why principles of management have gained importance these days

Q22. Why is it said that the principles of management are universal?

Q23. Principles of management are guidelines to action but do not provide ready-made strait jacket
solution to all managerial problems. Why?

Q24. The principles of management are not rigid prescription. What does this highlight about the nature
of principles of management

Q25. Why is it said that principles of management are flexible?

Q26. The degree of centralization and decentralization depends upon the circumstances and situations of
enterprise. Which characteristic of principles of management has been highlighted here?

Q27. Why are management principles used as a basis for management training , education and research?

Q28. Why is it said that management principles are behavioral?

Q29. Why is it said that management principles are contingent?

Q30. “Principles of management help in thoughtful decision-making.” How?

Q31. Who emphasized on administrative principles of management?

Q32. Why is it said that principles of management are less than perfect?

Q33. Principles of management are intended to establish cause and relationships. Why may it be difficult
to establish such relationship?

Q34. Which principle is violated when tools and materials are not found at the right place in the company?

Q35. Which principle is violated when a subordinate habitually contacts higher authorities in the company
by passing his immediate superior?

Q36. Which principle is violated when none of the departments of company have a separate plan of action?

Q37. A manager grants one month medical leave to a supervisor with pay and only one week medical
leave to an accountant. Which principle is violated?

Q38. ‘A subordinate receives orders from more than one boss.’ What does it imply?

Q39. Distinguish between official authority and personal authority.

Q40. A manager should have the right punish a subordinate for willfully not obeying a legitimate order
but only after sufficient opportunity has been given to his /her case.
Identify the principle of management highlighted here.

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Q41. Identify the technique which is the strongest motivator for a worker to reach standard performance.

Q42. Which principle management suggests that employees should be treated with justice and kindness?

Q43. Why is stability in tenure of personnel good for the business?

Q44. Fayol insists that good sense and experiences are needed to ensure fairness to all employees who
should be treated fairly as possible. Identify the principle of management.

Q45. What is the aim of the principle ‘unity of direction?

Q46. Hina and harish are typist in company having same educational qualification. Hina is getting Rs. 6000
per month and harish Rs. 8000 per month as salary for the same working hours. Which principle of
management is violated in this case?

Q47. Give the difference between the principle of ‘unity of command and ‘unity of direction’ on the basis
of implications’.

Q48. Nikhil , a manager , very often speaks to people at all levels, passing on instruction regarding his
department and also the other department. Which principle of management is being overlooked?

Q49. A sales person is asked to finalize a deal with a customer. The marketing manager allows him to give
a discount up to 10% but the fiancé manager allows him to give discount of up to 5% only. Which
principle is violated here?

Q50. “Workers should be encouraged to develop and carry out their plans for development.”
Identify the principle of management formulated by Fayol.

Q51. The management and workers have entered into an agreement that workers will do overtime to cover
up losses of the company. In return, the manager will increase the wages. But management later
refused to increase the wages. Name the principle violated in this situation.

Q52. In Asfia Ltd., an employee has the objective of maximizing his salary, but the organizational objective
is to maximize output at competitive cost. There was some dispute on this for a while. Eventually,
the organization’s interest was given priority over employees’s interest. Name the principle related
to this situation.

Q53. The directors of Kanika Ltd... an organization manufacturing computers, want to double the sales
and have given this responsibility to their sales manager. The sales manager has no authority either
to increase the sales expenses or appoint new salesman. Hence, he could not achieve this s target. Is
the sales manager responsible for not achieving the target? Which principle of management is
violated here?

Q54. “A principle of management states that the work should be divided into small tasks as it leads to
specialization and increased output. Name the principle.

Q55. “A manager should replace “I” with “ we” in all conversations with workers to foster team spirit”
Identify the principle of management emphasized here.

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Q56. Priyanka, a manager, expects her subordinates to adapt to the new environment and working
conditions without giving them time to settle down. Which principle of man agent is being
overlooked?

Q57. Swati, a manager, expects her subordinates to work for the happiness and pleasure of being in the
organization. Which principle of management is being overlooked?

Q58. Fallowing this principle of management will minimize the need for using penalties, but not following
it may result in a loss of coordination. Identify the principle.

Q59. The production manager of an automobile company asked the foreman to achieve a target production
of 200 units per day. But he did not give him the authority to requisition tools and materials from the
store department. Cam the production manager blame the foreman if he is not able the achieve this
target? Explain briefly principle relating to the situation.

Q60. In each of the following cases, tell which principle of management as given by Henri Fayol is being
violated :
a) When no division of the company has a separate plan of action.
b) When a sales manager is not given the right to discount to the buyers necessary to conclude a
large sales contract, which will be profitable for the company.
c) When a subordinate receives order from two superiors.
d) When a manager awards contract for supply of raw material to a particular party, which happens
to be owned by his relative ignoring other parties, who can supply the same at a cheaper rate.
e) When a subordinate habitually contacts higher authorities in the company by passing his/her
immediate superior.
f) When the tools and /or raw material are not found at the right place in the company.
g) When the employees is given responsibility to achieve the target production of 500 units with no
authority to access over raw materials.
h) When the manager grants one month medical leave to a supervisor with pay and only one week
medical leave to accountant.

Q61. Which technique of scientific management aims at elimination of superfluous varieties , sizes, and
dimensions of the products ?0

Q62. Which technique of management seeks to find out one best way of doing a job?

Q63. What is the greatest advantage of scientific management?

Q64. What is meant by mental revolution according to Taylor?

Q65. In one of the principles of scientific management, Taylor emphasis that there should be equal division
of work and responsibility between workers and management should work almost side by side with
workers helping and smoothening the way for them. Identify the principle.

Q66. Name the technique of scientific management which focuses on separation of planning and execution
functions.

Q67. On which principle of management, Taylor’s technique of functional foremanship is based?

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Q68. Name the personnel who work under the planning incharge.

Q69. Name the personnel who work under the production incharge.

Q70. Name the technique of scientific management which differentiates between efficient and inefficient
workers.

Q71. Which principle of scientific management suggests the introduction of scientific investigation and
analysis of management practices?

Q72. What is the focus of scientific management?

Q73. Principle of cooperation, not individualism, is an extension of which principle given by Fayol ?

Q74. Which principle does functional foremanship violate?

Q75. Which technique of scientific management is an extension of the principle of division of work and
specialization on the shop floor?

Q76. Name the technique of Taylor which is strongest motivator for a worker to reach standard
performance.

Q77. What is the objective of Fatigue study?

Q78. What is the objective of Time study?

Q79. Which principle of Taylor advocates scientific enquiry as opposed to hit and trial?

Q80. Write any two techniques which facilitate application of the principles of scientific management.

Q81. Identify the techniques of scientific management, which are described by the statement given below:
a) When many specialists supervise each worker.
b) When uniformity is introduced in materials, machines, tools, methods of work and working
conditions after due research.
c) To determine standard time taken to perform a well defined job.
d) Giving variable wages to workers based on their performance.
e) Change in the attitude of workers and management towards one another form competition to
cooperation.
f) To find out one best way to do the job.

Q82. APPLICATION AND HOTS BASED QUESTIONS

1. In your school , you observe that books are kept in office, chalks in the library and office records
in the staff room.
a) Which principle of management is violated here and why?
b) How will that affect the achievement of school objectives ?
c) As a manager, what steps will you take to rectify the shortcomings?
2. Soniya Ltd. was engaged in the business of manufacturing auto components. Lately, its business
was expanding due to increased demand for cars. The competition was increasing. In order to keep

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 its market share intact, the company directed its workforce to work overtime. But this resulted in
many problems.
Due to increased pressure of work the efficiency of workers declined.
Sometimes, the subordinates had to work for more than one superiors. The workers were
becoming indisciplined. The spirit of teamwork, which had characterized the company previously,
had begun to wane. Identify any three principles of management (as given by Henry Fayol) which
were being violated, quoting the lines from the above case.
3. Principles of Taylor and Fayol are mutually complementary. One believed that management
should not close its ears to constructive suggestions made by the employees, while the other
suggested that a good company should have an employee suggestion system, whereby
suggestions which result in substantial time or cost reduction should be rewarded.
Identify and explain the principles of Taylor and Fayol referred in the above para.
4. Principles of Taylor and Fayol are mutually complementary. One believed that the management
should scientifically select the person and the work assigned should suit his/her physical and
intellectual capabilities, while the other suggested that the work can be performed more efficiently
if divided into specialized tasks.
Identify and explain the principles of Fayol and Taylor referred to in the above para.

Q83. Nikita and Salman completed their MBA and started working in a multinational company at the
same level. Both are working hard and are happy with their employer. Salman had the habit of back
biting and wrong reporting about his colleagues to impress his boss. All the employees in the
organization knew about it. At the time of performance appraisal the performance of Nikita was
judged better than Salman. Even then their boss, Mohammed Sharif decided to promote Salman
stating that being a female Nikita will not be able to handle the complications of a higher post.
i. Identify and explain the principle of management which was not followed by this multinational
company.
ii. Identify the values which are being ignored in the above para.

Q84. The production manager of a company assigned a target of production of 1,000 tv sets to 10 workers.
They decided to manufacture 100 sets each mutually. Among them one worker fell sick. Other
workers refused to divide his work among themselves & concentrated on their individual target of
production . As a result the target of 1000 TV sets could not be achieved.

Q85.
a) Which characteristic of management is violated in the above para?
b) Name & explain the principle of Fayol violated here.
Sethi industries are facing a lot of opposition due to less payment of salaries to women workers as
compared to men workers for equal work.
a) Which dimension of business environment is violated here?
b) Identify the principle of management not followed here.

Q86. Flowers Group Ltd. is not functioning smoothly. The employees are work shirkers, and do not honour
the commitments towards organization. They are not working efficiently and effectively to produce
maximum output. On the other hand, superiors are also not fair and clear about rules and regulations.
Basically, behaviour of workers is due to the fault of management which is showering ignorant
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 behaviour towards workers and also not fulfilling their promises of better environment, promotion,
wage revisions in time etc. Which principle is being violated? What does it state and what are the
consequences of its violation?

Q87. Mr.Rakesh Kathuria is the owner of ‘Kathuria Sports Store”. He has divided his business into four
departments. All departmental managers have been instructed to comply with certain general
guidelines while discharging their functions. By doing so, they will definitely achieve better
performance. All managers complied with this instruction.
Identify the concept of management mentioned in the above paragraph.

Q88. Marketing manager of “Guru Kripa Ltd.’ Has set sales targets of his Sales Executives. But he did not
give them the authority to grant rebate and credit facility of the customers, which are so essential on
various occasions. Consequently sales, executives failed to achieve their targets.
Identify the principle of management ignored in this case.

Q89. Manager of “Sargodha Ltd.” Has enforced the following concepts of management in his company.
Identify the same:
i. To find out the best method of doing work.
ii. Creating the spirit of cooperation in place of competition between angers and workers

Q90. Production manager of ‘Aggarwal Pvt.’ Took special care of the interest and ability of his
subordinates while distributing work among them. He was of the firm opinion that a worker should
be given one work again and again so that he may become expert in it. One day he took round of his
department and noticed that the workers were not doing their job quickly. On enquiry, je learnt that
the workers worked non-stop and that was the main cause of their slow speed. He immediately issued
an order that during their working hours, the workers will have an interval to take rest.
In the above paragraph a principle and a technique of management have been discussed. Identify the
same.

Q91. In a manufacturing company as many as 100 labourers are working in the production department.
Eight specialists have been appointed to look after their work to issue command to them and to listen
to their complaints. The give advice to the labourers on different issues relating to their work.
i. What technique of scientific management is being followed here?
ii. Which principle of management is being ignored in this case?

Q92. “Haryana Handloom Ltd.” Manufactures bed-sheets. Noticing its popularity in the market, the
company decided to manufactures curtain cloth also. The decision was executed with immediate
effect. But the company did not increase the man-power to the desired extent. Company wanted the
existing staff to manage the work for some time, by working overtime. The result was that on the one
hand, the new product of the company failed to keep its hold on the market and on the other hand,
due to over-work efficiency of the employees declined. On several occasions it was observed that a
subordinate was getting instructions from two or more officers. Managers too had started giving
simple and easy work to their known employees and complex and difficult work to other employees.
Company was now ignoring rules completely.
Quoting the lines, identify those three principles of management that have been ignored here.

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Q93. Mr.Sanjeev Sharma is the Chief Executive Officer (CEO) of “Gujrat Sales Limited”.productio Manager
of his company is going to get the repair work of part of his factory done, on a large scale. As such,
company will not be able to produce some of the products for some time. It will have to sell only
those goods which are lying in stock. Considering it, the production manager has asked the sales
executives to slow down the pace of sales. On the other hand, since the sales manager has set high
targets of sales, he has been insisting on the sales executives to speed up the sales.
a) Which principle of management is being ignored by the company in the above paragraph?
b) Write down any one consequence of the principle mentioned in (a) above.
Which concept of management is being ignored by the company in this case?

Q94. Dr. R.K. Miglani, the owner of “Miglani Nursing Home” is a renowned Surgeon. Twenty doctors,
forty nurses and sixty attendants are working in the nursing home. Every day, several successful
operations are conducted here. Miss Partigya Sharma, a student of Class-XII has been preparing her
project on this nursing home. She is permitted to visit the nursing home once in a week.
During the course of her visit. She observed a unique thing. That is whenever she visited the nursing
home old faces were not visible. Instead she found new faces. On scrutiny, it transpired that the
behavior of its administrator was very strict. People come here, serve for a few days and go away.
In the above paragraph, which principle of management has been ignored.
Write two consequences of its ignoring.

Q95. There are three departments, Art Science and Commerce in a college. Dr. Sahi Budhiraja is the head
of all the three departments. He is an M.Com. Ph.D. Dr. Rekha Sood is the principal of the college.
She always keeps this in mind that whatever message she is to convey to the teachers should be
routed through the medium of head of the department. All teachers have also been instructed that
they too should communicate with the Principal through the medium of head of the department.
Thus there is a pre-defined arrangement of communication in the college. Dr. Budiraja is looking after
three department nature. He is not able to control them properly. Principal is also not satisfied with
his performance.
Identify two principles of management mentioned in the above paragraph. He is notable to control
them properly. Principal is also not satisfied with his performance.
Identify two principles of management mentioned in the above paragraph.
Quote the lines of the identified principles.

Q96. “Rahat Medicine Ltd.’ Has never given any importance to the suggestions of its employees. Every
person holding managerial position in the company considers himself wiser than the other. They
neither help anyh body nor get help from anybody. Last year, Mrs Sonali Chauhan was appointed
Chief Manager of the company against a vacant post. She was an MBA from IIM Lucknow and had
also five-year experience of the same post. Immediately after taking charge she decided to deal,
“Employees of all levels (managerial and non-managerial) are free to give their suggestions. Besides,
the one who gives the best suggestion will be awarded a prize. In addition, she advised them to
discard ego and extend help in each other work. We will have to give in the shape of movement.
Those who participate in this movement will be promoted at the earliest.” This address had a positive
effect on the employees. Both the problems of the company disappeared very soon. Kumara Sonali
proved to be good leader.
Identify by quoting principles of management in the above paragraph and give its meaning.

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Q97. “Uttaranchal Fairdeal Limited” is a famous services providing company. Mr.Chandan Pushkar is its
Managing Director. He continuously motivates his Research and Development Department that new
and latest methods of doing work be explored. Provision has also been made to give reward to those
employees who will participate in a particular exploration. He also believes that two groups working
on managerial and non-managerial posts are similar to two wheels of an organisational vehicle. If
this vehicle (organisation) is to be driven in a right way then both the wheels should be properly
aligned. Mr. Pushkar is a successful leader. Among his employees, he has instilled the feeling that no
decision will be taken without consulting the subordinates. To excel, the other companies in this field,
is the main motive of Mr. Pushkar, paying attention to training is the secret of the company.
Identify by quoting the lines principles of scientific management as mentioned in the above
paragraph.

Q98. Devender and Rakhi both are friends. Both have completed their MBA course. Currently, they are
employed, at equal level, in a multi-national company. Devender is Deputy Manager in “Kidwear
Division” and Rakhi is Deputy Manager in “Ladieswear Division” Mr. Raghu Prasad is their boss. In
order to please his boss, Devender always plays the role of “Yes Man”. On the other hand, Rakhi says
“Yes” only for reasonable matters. She unhesitatingly refuses any wrong action of boss. At the end of
year, when the performance of both of them was evaluated, then Rakhi’s performance stood better
then of Devender. In spite of all this Mr. Prasad decided to promote Devender. Behind this decision,
the consideration of the boss was: being a lady, Rakhi will not be able to take as yet the responsibility
of higher post. So, let her stay where she is at present.
a) Identify which principle of Management has been violated by the company.
b) Quoting the lines, identify those values which have been ignored in the above paragraph.

Q99. Mr. Sham Sunder has recently been appointed General Manager of “Om Auto parts Ltd”.
Immediately after appointment, he under-took a round of the factory. He found that stationery is not
at its specific place in the officer nor are the employees available at their proper place. He realized
that everything there was in a state of chaos,
i. What principle of management is being violated here? Clarity.
ii. What effect this situation will have on the objective of the company?
iii. What suggestion will you give for improving this situation?

Q100. Mr. Radha Krishan Kher is the Production Manager of “Krishna Milk Product Pvt.Ltd.” He is
producing several milk products. Various alternatives are available for producing each product. It is
the Endeavour of Mr. Kher that best and cheap alternative be adopted in production. He has made a
special arrangement in his department. According to it, a proper place will be earmarked for
everything used in the production department. He has also directed the employees of the department
that everything should be available at its decided place. There is a provision for awarding punishment
to those who ignore this direction. All activities of Mr. Kher’s department are closely related to each
other. To maintain balance among them he makes special efforts so that there is no obstruction in
production.
i. Which technique of scientific management is being practiced by the above paragraph.
ii. Quoting the lines, identify that function of the management which is called Essence of
management.
Which principle of Henry Fayol is being followed by the company.

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Q101. Mr.Suksham khan is the CEO of “Perfect shoes Limited”. Before joining this company, he used to
work as Management Expert. The peculiarity of Mr. Khan is that he observes very minutely every
small or big activity. Likewise, he gives equal importance to what is said by every junior or senior
person.
He is not with satisfied with the performance of the production department. This department
discharges the functions of both production and production and stock. Both the activities of the
department are in a state of chaos. Mr. Khan took personal interest to scrutinize this dismal state of
affair. He found that shoes of several sizes were being made. Some of the sizes were not needed. As
a consequence, there was wastage of material, machines and man-power. It was the biggest weakness
of the department.
During the survey of production department, Mr. Khan also noticed that many person while doing
work were making certain movements that were least needed. It slowed down the pace of production.
Mr. Khan was an experienced management expert. He knows that to utilise cent-percent production
capacity of the employees they need be provided healthy and clean environment. He therefore, paid
special attention to this aspect. Besides, he believes that whether male or female, they must be given
equal facilities, equal rights and equal opportunities for promotion.
a) By which technique of scientific management wastage occurring in production department can
be prevented?
b) Highlight the technique of scientific management used to enhance the pace of work in production
department.
c) Which principle of management is being followed here? Quote the lines.

Q102. Mr. Ankur Tripathiand some of his friends after completing their MBA course, established a company
under the name and title of ‘Rashtriyahit Limited’. The company manufactured LED Bulbs. It was the
keen desire of Mr. Tripathi true the name (Rashtriyahit) of his company. In order to achieve his main
objective, he concentrated on these points: to make employment opportunities available, to protect
the environment from pollution and to sell good quality products at a reasonable price.
To begin with Mr. Tripathi and his friends concentrated on price fixation. For this purpose, they tried
to find out as to what would be the labour cost per unit. They also wanted to know about the number
of labourers that would be needed to achieve a given target of production.
In order to well organize their company they formulated some rules. It was absolutely essential for
each and every employee of the company to stick to these rules it was also notified that those persons
who gave suggestions regarding better performance of the company will be given a hearty welcome.
Identify and give meaning of the following facts mentioned in the above paragraph by quoting the
lines.
a) Any single point regarding importance of management.
b) One technique of scientific management.
c) Two principles given by Henry Fayol.

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 CHAPTER - 2
PRINCIPLES OF MANAGEMENT

Meaning of Management Principles:

Principles of management are general and broad guidelines for managerial decision making and action,
which can be used for conduct in work places under certain situations. They help manager to take and
implement decisions.
Management Principles v/s Principles of Pure Science: Management principles are not ads rigid as
principles of pure science. They deal with human behaviour and thus, are to be applied creatively given
the demands of the situation.
Principles of Management v/s Techniques of Management: Techniques are procedures or methods, which
involve a series of steps to be taken to accomplish desired goals.
Principles are guidelines to take decisions or actions while practicing techniques.
Principles v/s Values:
Values are something which are acceptable or desirable. They have moral Connotations. Principles are
basic truths or guidelines for behaviour.

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 Values are general rules for behaviour of individuals in society formed Through common practice
whereas principles of management are formed after research in work situations, which are technical
in nature.

Meaning –

Management principles are the statements of fundamental truth which act as guidelines for taking
managerial actions and decisions.
Classical Management thinkers
Henry Fayol (General & Modern Principles of Management)
Fedrick Winslow Taylor (Scientific Management)

Contribution:

Fayol Taylor

14 Principles 5 Principles

Qualities of a Manager Techniques

Functions Of Management Work Studies

Departments (categorization of individual

activities) Technical, Financial, Accounting,
Managerial, Commercial, Security

Principles are derived by experimentation & observation.

Principle Technique

- Guidance to take decision or action while - Procedures/Methods It involves a series of

practicing techniques. steps to be taken to accomplish desired goals.

- Flexible - Not so flexible

- Formed after research in work situation - Formed through common practice

Principle Values

- Technical in nature - Ethical in nature acceptable

- Guidance to take decision - Socially desirable behavior.

- Flexible - Moral connotations.

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 - Formed after research in work situation - Owned through common practice.

- Values- general rules for behavior of

individuals in society

Principles have to keep pace with changes:

ICT – expanded the capability of managers to preside over large business empires spread across the globe.

Infosys Headquarters in Bangalore boast of the Asia’s largest flat screen in their conference room from
where managers can interact with employees & customers.

Fayol emphasized on the following points while developing principles:

Principles of Management are not exhaustive but suggestive and Not rigid but flexible

Meaning

Management principles are the statements of fundamental truth which act as guidelines for taking
managerial actions and decisions.

Nature/Features/Characteristics of Management Principles

The main features of management principles are given below:

Universal
Q1. Universal application - The principles of management are universal in nature that Application
means they can be applied to all kind of organisations irrespective of their size and
nature. General
Guidelines
General guidelines - management principles are not static or absolute statements. These
cannot be applied blindly in all the situations. The applicability of Formed by
management principles depends on conditions and nature of Features Practice &
organisation. Of Experiments

Evolutionary/formed by practice and experiments - These are the Management Flexibility

expressions of keep experiences of the leaders of management
thoughts. Therefore they are evolutionary in nature. Principles
Behavioral
Flexibility - Management principles can be applied differently under In
different conditions. Some changes can be made in application of
Nature
principles according to the requirement of the company.
Based on
Behavioral in nature - Management principles are formed to guide and influence the Cause &
Effect
behaviour of employees. These principles insist on improving relationship between
superior, subordinates and all the members of organisation. Relationship

Based on cause and effect relationship - Management Principles are based on cause and
Contingent
effect that means these principles tell us if a particular principle is applied in a
situation, what might be the effect. Although these principles cannot state perfectly absolute result
because these are applied on human being but it helps in knowing some idea about the effect.

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Contingent - Management Principles are contingent or dependent upon the situations prevailing in
organisation. Their application and effect depend upon the nature of organisation. The application of
principle has to be changed according to the nature, size and type of organisation.

Significance/Importance of Management Principles

Providing managers with useful insight into reality - Management principles act as guidelines for the
managers. These principles improve knowledge, ability and understanding of managers under various
managerial situations.
Optimum utilization of resources - Principles are designed to get maximum benefits from the human efforts
and other resources.
Scientific decisions - Managers have to take number of decisions every day. So they need to assess the
resources of organisations very carefully so that the appropriate decision can be taken by using the
available resources in best possible manner. The management principles enable the managers to
approach various problems systematically and scientifically.
Meeting changing environment requirement - Management principles train the managers in implementing
the changes in right direction and at right level in the organisation.
Effective administration - The management principles act as guidelines and base to form various
administrative policies to have systematic working in the organisation.
Management principles make administration more effective by discouraging personal prejudices and biases.
These principles insist on objectivity and scientific decisions.
Fulfilling social responsibilities - Management principles not only act as guidelines for achieving
organizational objectives but these principles also guide the managers to perform social responsibilities.
Management training, education and research - Principles of management are at the core of management
theories. These act as base for management training and education.

Optimum
Utilization
of
Fulfilling Resource Managemen
Social t Training,
Responsibiliti Education &
es Research

Importance Of
Principles of Providing
Effective Management Manager
Adminstrati
with Useful
on
Insight

Meeting
Changing Scientific
Environme Decesions
nt

Fayol's Principles of Management

Background and History of Fayol

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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 techniques to bring out the company from this situation and he succeeded. He retired after 30
years the company was a leading coal-steel company with strong financial background.

Principles of Management Developed by Fayol

Principle of Division of Work.

According to this principle the whole work must be divided into small tasks or units and instead of
assigning the whole work to one person one task or unit of work should be assigned to one person
according to the capability, qualification and experience of the person.
Positive Effects of Principle of Division of Work:
Specialization
Improves efficiency
Consequences of violation of these principles:
a) Lack of efficiency
There will be no specialization
Division of Work
Chances of duplication of work

Principle of Authority and Responsibility

According to this principle there must be balance or parity between the authority and responsibility.
Positive Effects of this Principle:
No misuse of authority.
Helps in meeting responsibilities on time without any delay.
Consequences of violation of this principle:
b) Delay in work or in completion of work due to less authority.
Misuse of authority due to excess authority.
Overburden with work with excess responsibility.

Principle of Discipline - Fayol insists that discipline is required at superior as well as subordinate level.
The disciplinary rules shall not be applicable only on subordinates but discipline requires good superiors at
every level, clear and fair agreement between superior and subordinates and judicious application of
penalties.
Positive Effects of this Principle:
Systematic working in the organisation.
Improves efficiency.
Consequences of violation of this principle:
c) Disorder, confusion and chaos.
Wastage of resources in absence of discipline.
Delay in work due to absence of rules and regulations.

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 Principle of Unity of Command - According to this principle an employee should receive orders from
one boss only because if he is receiving orders from more than one boss then he will get confused and
will not be able to understand that whose orders 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.
Positive Effects of this Principle:
No confusion in the mind of subordinate.
No ego clashes.
Improves effectiveness in working.

Violation of this principle will lead to following consequences:

Confusion in the mind of employee.
Subordinate will get chance to escape from his responsibilities by giving excuses.
Ego clashes among the different superiors.
Difficulty in maintaining discipline in the organisation.

Unity of Direction - According 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.
Positive Effects of this Principle:
Achievement of organisational goal.
Efforts of all the employees get unified towards one direction only.
Consequences of Violation of this Principle:
Lack of coordination.
Wastage of efforts and resources by working in different directions.
Difficulty in achieving organisational goal.

Difference between Unity of Command and Unity of Direction

Basis of
Unity of command Unity of direction
difference
Meaning This principle suggests that a subordinate This principle suggests that all
should receive orders from only one organizational activities that have the same
superior. objectives should be grouped together and

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 carried out as per one common plan under
the supervision of one supervisor.
Objective The main objective is to avoid dual The main objective is to avoid overlapping
subordinate. and duplication of work.
Focus The focus is on the individual. The focus is on the organization as a whole.
Aim The aim is to prevent confusion in the The aim is to unify the efforts of the
functioning of the individual employees. individual employees towards the
achievement of departmental goals.
Result Following this principle result in Following this principle results in better
systemized functioning of the coordination among different individuals
organization. to carry out task.
Example Suppose Mr. A (sales manager) assign Mr. Suppose an organization deals in two
B( subordinate) a task that has to be product lines-cosmetics and accessories. In
completed in five working days. This will this scenario, the principle of unity of
lead to confusion in terms of target, and direction suggests that the organization
the principle of unity of command gets should have two separate departments,
violated. and each will focus primarily on its
respective product.

Subordination of Individual Interest to General Interest - According to this principle the interest of
organisation must supersede the interest of individuals or employees. If the objectives of individual are in
the same direction of organisation then there is no problem but if the objectives of both the groups are in
different directions then manager must try to reconcile individual interest with organisational goal.
Positive Effects of this Principle:
Achievement of organisational goal.
Coordination between individual and organisational goal.
Consequences of Violation of this Principle:
No achievement of organisational goal.
Even employees will also suffer in long run.

Principle of Remuneration of Persons - 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 turn-over. The fair wage is determined according to:
Financial capacity of the concern.
By keeping in mind the minimum wage act of govt.
The wages and salaries paid by the competitors.
Positive Effects of this Principle:
Employees get motivated.
Devotion and commitment of employees improves.
Consequences of Violation of this Principle:
Increase in turnover of employees.
Dissatisfaction and de-motivation of employees.

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Principle of Centralisation and Decentralisation: Centralisation refers to concentration of authority or
power in few hands at the 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 organization.
Positive Effects of this Principle:
Benefits of centralisation as well as decentralisation.
Fast decisions at operational level and strict control by top level.
Consequences of Violation of this Principle:
Complete centralisation will result in delay in decision.
Complete decentralisation will result in misuse of authority.

Principle of Scalar Chain - Scalar chain means line of authority or chain of superiors from highest to lowest
rank. Fayol insists that this chain must be followed strictly in the organisation. Each information must pass
through every key of this chain, no skipping of any one key should be allowed.

Positive Effects of this Principle:

Systematic flow of information.
No communication gap in the organisation.
Consequences of Violation of this Principle:
There may be communication gap.
No clarity in authority responsibility relationship.
Principle of Order - In this principle order does not mean command. Fayol insists that there must be
a fixed place to keep every material and 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.
Positive Effects of this Principle:
No wastage of time in search of men or material.
Smooth and systematic working of organisation.
Consequences of Violation of this Principle:
Wastage of time and energy in search of men and material.
Not able to contact the people at the right time.

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Principle of Equity - Employees will put their maximum efforts only when they are treated with kindness
and justice. If a manager is biased in dealing with employees then employees will get dissatisfied and will
not contribute to their maximum capacity.
Positive Effects of this Principle:
Employees get satisfied.
Motivate the employees and boost up the morale of the employees.
Consequences of Violation of this Principle:
Dissatisfaction in employees.
Increase in turnover.
Unhealthy relation between superior and subordinates.
Stability of Tenure of Personnel - It refers to no frequent termination and transfer. 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 cannot contribute their maximum.

Positive Effects of this Principle:

Improves efficiency level of employees.
No wastage of time and resources.
Consequences of Violation of this Principle:
Wastage of resources in learning the new job.
Frustration and dissatisfaction among employees.
Principle of Initiative - Fayol suggested that employees in the organisation musts be given an
opportunity to take some initiative in making and executing a plan. It gives immense satisfaction to
employees.
Positive Effects of this Principle:
Develops feeling of belongingness in employees.
Employees achieve the target on time if they are set up with their consultation.
Consequences of Violation of this Principle:
Employees will not work to the best of their ability.
Demotivation among employees

Principle of Espirit de Corps - Fayol emphasized on the 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 because
team contribution is always better and more than individual contribution.
Positive Effects of this Principle:
Develops team spirit.
Achievement of group goal.
Consequences of Violation of this Principle:
Team goal may not be achieved.
No team spirit and more stress on individualism. Team Espirit
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Fayol's 14:
Principles of management are very effective but the interpretations of these principles are changed.

Following table shows the traditional and present implications of management principles of Fayol.

S.No. Name of Principle Traditional impact Modern impact

Generalization in worker's job

1. Division of work Specialization in worker's job design.
design.

Authority and
2. Managers are empowered. Employees are empowered.
Responsibility

3. Discipline Formalized rules and regulations. Informal pressure control.

Subordinate report to multiple

4. Unity of command Subordinates report to one boss only.
bosses.

5. Unity of direction Functions of one direction. Functions have multiple directions.

Subordination of
Employees are committed to the Organisation is committed to the
6. individual interest to
organisation. employees.
common goal

Remuneration of
7. Reasonable pay reward. Performance based reward.
Personnel

Powers distributed evenly at every

8. Centralization Power in hands of top level.
level.

Smooth flow of information by Flatter and short cut

9. Scalar chain
passing through every level. communication.

Orderly arrangement of men and Orderly arrangement of men and

10. Order
material for control. material for coordination.

Kindness and just treatment of

11. Equity Developing sense of ownership.
employee.

Train employees to encourage them Ongoing employee training and

12. Stability of tenure
to remain. development.

Managers are encouraged to give Workers are encouraged to give new

13. Initiative
new ideas. ideas.

Maintaining high morale of Maintaining high morale of

14. Espirit de Corps
managers. employees.

Scientific Management Developed by F.W. Taylor

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Background and History of F.W. Taylor
F.W. Taylor was born in 1856 in USA. In 1878 he joined Midval Steel Company as a Mechanical Engineer.
Using his engineering background Taylor set out scientific studies and techniques. He was primarily
concerned about the efficiency of workers and optimum utilization of resources. Taylor's principles and
techniques were based on the observations he conducted in factories where methods of production lack
planning and working methods were haphazard.

Meaning of Scientific Management

Scientific management can be defined as "Application of science for each and every element of management".
In general language it means apply scientific tools, methods and trained personnel in order to increase the
output.

Definitions of Scientific Management

"Scientific management means knowing exactly what you want men to do and seeing that they do it in the
best and cheapest way". —F.W. Taylor

Scientific Principles of Management

i. Science, not rule of thumb - 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. Rule of thumb means dictatorship of manager whereas scientific decisions are based on cause
and effect and scientific measurement of methods and ways of production.
ii. Harmony, not discord - 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 rivals of each other as workers always feel that they are underpaid and are
overburdened with the work and management always feels that workers are good for nothing.
iii. Cooperation, not individualism - According to this principle work must be carried on in co-operation
with each other, with mutual confidence and understanding for each other. Workers and managers
must work in co-operation.
To have cooperation management should welcome good suggestions of employees and they should be
rewarded for their suggestion.

iv. 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.

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 Taylor insisted due care should be taken while selecting the employees and after selecting they must be
given job according to their qualification.

Scientific Techniques of Taylor

i. 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. Taylor stressed on minimum
eight specialists or functional experts to supervise and give orders to workers
The eight functional experts suggested by Taylor are:
Under Planning Department:
Route Clerk - This foreman is responsible to fix up the sequence of steps for performing mechanical
or manual job.
Instruction Card Clerk - This foreman is responsible for giving general 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.
Four Foremen under Operational 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.

Functional
Foremanship

Planning Operational
Department Department

Root Clerk Instruction Time and Disciplinarian

Card Clerk Cost Clerk

Gang Boss Speed Boss Repair Boss Inspector

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ii. Standardization and simplification of work - Scientific management always emphasizes on maintaining
standards relating to every step of business operation. Standardization does not mean only quality
standard but it refers to setting up standards for size, type, weights, measures and quality of product.
The objectives of standardization are:
To reduce a given line of product to fixed type, size and characteristics.
To allow interchangeability of manufactured parts and output among different departments and
branches.
To maintain quality standards.
To set up performance standards of men and machine.

iii. Fatigue study - This technique of scientific management is conducted to find out:
The frequency of rest intervals,
The duration of rest intervals,
The number of rest intervals.
Taylor suggested that the time period and frequency of rest interval should not be decided by the wish
and experience of manager but to give a scientific approach, fatigue study must be conducted. To conduct
fatigue study Taylor suggested observing an average worker when he is performing a job and noting
down the time when that worker starts getting tired and when his efficiency level starts decreasing, then
give him break.

iv. Method study - Taylor suggested that method of production should not be decided by rule of thumb
method but all the methods must be tried in the organisation and the one which brings maximum benefits
with minimum cost must be selected.

v. Time study - The technique of time study is conducted to determine or the objectives of time study are:
The standard time required to perform a job.
Setting up the standard target for workers.
Determining the number of workers required to perform a job.
Categorizing the workers in efficient and inefficient categories.

vi. Motion study - The scientific technique of motion study is conducted or the objectives of motion study
are:
To determine the movements of workers when they are performing the job.
To differentiate between productive and unproductive movements.
For cutting down unproductive and wasteful movements.
To design suitable equipment and tools to minimize the unproductive movements of workers.

vii. Work study - It ensures maximum production at minimum cost and getting best contribution from every
factor:
Time study + Motion study + Method study + Fatigue study.

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viii. Differential piece wage system - The scientific technique of differential piece rate system emphasizes
on paying different rate of wage for efficient and inefficient employees. The technique of differential
wage rate system insists on:
Paying different rate of wage to efficient and inefficient employees.
Extra wages paid to efficient employees will motivate them to remain efficient.
Extra wages paid to efficient employees will motivate inefficient employees to come in the category of
efficient employees.
When payment is given according to number of units produced automatically the production will be
maximized.

ix. Mental revolution - The scientific technique of mental revolution is conducted: or the objectives of mental
revolution are:
Change in mental attitudes of workers and management towards each other.
Co-operation between workers and management.
Ruling out feeling of suspicion or prejudice from the minds of workers and management to adapt
systematic thinking.

Comparison between Taylor and Fayol

The contributions of Taylor and Fayol can be differentiated on the following ground.

S.No. Point of Difference Taylor’ Technique Fayol Technique

Taylor's techniques and principles are Fayol's principles are concerned with
Concern
concerned with worker's efficiency. management efficiency.

Taylor started his studies and Fayol started his studies and
Level/Perspective approach from lowest level in the approach from the highest level in the
organisation. organisation.

Taylor laid great emphasis on Fayol laid great emphasis on

Emphasis
standardization of work. functions of managers.

Taylor laid focus on eliminating Fayol's focus was on development of

wasteful movements and saving principles for better management. It
Focus
energy of workers. It forces on increase focuses on improving overall achieve
in productivity. station.

Taylor's main contribution was Fayol's main contribution was

Major contribution development of scientific techniques development of fourteen principles of
and scientific principles. general management.

Taylor developed a personality of Fayol developed the personality of a

scientist and became famous as father researcher and practitioner. He
Personality
of scientific management. became famous 'as father of general
management.

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 Did not follow this principle as Taylor Strictly followed this principle i.e.,
Unity of Command
insisted on minimum 8 bosses. only one boss for one employee.

Taylor's techniques are expressed as Fayol's techniques are expressed as

Expression
scientific management. general theory of administration.

Applicability Applicable to specialized situation. Applicable universally.

Contributions of Fayol and Taylor

Basis of
Contributions by Taylor Contributions by Fayol
difference

The scientific management theory, or The general theory of administration, or

Contributions ‘Taylorism’, was evolved by Taylor in ‘Fayolism’ was propounded by Fayol in
1911. 1916.

Taylor was mechanical engineer and Fayol was a mining engineer and
Personality
scientist. practitioner.

Taylor introduced the principles of

scientific management and functional Fayol introduced 14 principles of
Principles and
foremanship along with various management that include order, equity
techniques
techniques such as method study and and espirit de corps.
motion study.

Fayol’s principles are accepted

Application of Taylor’s principles are applicable to
everywhere and have universal
principles specialized and particular situations.
applicability.

Taylor’s principles are aimed at

Fayol’s principles are based on the
Perspective improving the conditions of floor-level
functions of the higher level managers.
workers first.

Emphasis and The focus is on improving the overall The focus is on increasing the
focus administration of an organization. productivity and the workers’ efficiency.

Taylor is popularly known as ‘the father Fayol is regarded as ‘the father of

Title
of scientific management’. general management’.

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