Principles Of Management - Class 12 Commerce Business Studies - Extra Questions

Why does the principle of unity of command not hold good in an organisation using technique of functional foremanship?

The principle of unity of command suggests that there should be one boss to whom the employee is answerable to. Whereas, in functional foremanship there are at least eight bosses under sub departments which are assigned to a single employee. This technique clearly violates the principle of unity of command as it is in contrast with what the principle says. Hence, an organisation cannot have both principle and the technique as it contradicts each other.


Profit maximisation is the only objective of financial managemant. OR Maximisation of profit is real and complete motive.

This statement is 'False' because of the following reasons :
(i) Profit maximisation is the objective of financial management but not the only objective as wealth maximisation is also the important principle of financial management.
(ii) Profit maximisation is important because :
(a) a business cannot survive without profit.
(b) it is the tool of measuring the success of a business firm.
(c) higher profitability results in better dividend to equity share holders and
(d) it can generate funds for future expansion.
(iii) So profit maximisation has to be achieved for socio-economic welfare.
(iv) But wealth maximisation is also the principle as it increases the
market value of equity shares resulting in increase in the investments.


It is not possible to go ahead without financial plan.

This statement is 'True' because of the following reasons :
(i) The financial manager gets entire information about the firm's activities.
(ii) Om this basis, he prepares the financial plan and builds up information. 
(iii) This information is useful for other functions for decision making.
(iv) This excellent management information system is an asset which serves as guide for overall activities of the firm.
(v) Also, the financial plan eliminates waste, helps in decision making, co-ordination, communication and integration of activities in the firm's activities.


Sanchit, after completing his entrepreneurship course from Sweden returned to India and started a coffee shop 'Aroma Coffee Can' in a famous mall in New Delhi. The speciality of the coffee shop was the special aroma of coffee and wide variety of flavours to choose from. Somehow, the business was neither profitable nor popular. Sanchit was keen to find out the reason. He appointed Sandhya, an MBA from a reputed college, as a manager to find out the cause for the same.
Sandhya took feedback from the clients and found out that they loved the special unique aroma of coffee but were not happy with the long waiting time being taken to process the order. She analysed and and found out that there were many unnecessary obstruction in between which could be eliminated. She fixed a standard time for processing the order. She also realised that these were some flavours when demand was not enough. So, she also decide to stop the sale of such flavours. As a result with in a short period Sandhya was able to attract the customers.
Identify and explain any two technique of scientific management used by Sandhya to solve the problem.

Techniques of scientific management used by Sandhya to solve the problem were:
(i) Motion Study
- Meaning : It is technique to study the movements that are necessary for doing a well defined job.
- It seeks to eliminate unnecessary and wasteful movements so that it takes less time to complete a job efficiently.
(ii) Time Study
- Meaning : It is a technique to determine the standard time taken by a worker of reasonable skill and efficiency to perform a well-defined job.
- It helps in deciding the number of workers to be employed, frame suitable incentive scheme and determine labour costs.
(iii) Simplification of Work
- Meaning: It is technique to eliminate superfluous varieties, sizes and dimensions of products.
- It leads to reduced inventories, fuller utilization of equipment and increased turnover to reduce costs.


Fayol points out the cost of unnecessary labour turnover in one of his principles of management. Name that principle.

Fayol points out the cost of unnecessary labour turnover in his principle of stability of tenure of personnel. This principle talks about the stability of worker's job which makes him feel secure. Frequent changes in job or shuffling have a very adverse effect on the worker. With the passage of time, the worker becomes knowledgeable which helps in performing the job with minimum wastage and greater efficiency.


'Aapka Vidyalaya' believes in holistic development of students and encourages team building through a mix of curricular, co-curricular and sports activities. On its founders day a stage performance had to be put up. A committee of ten perfects was constituted to plan different aspects of the function. They all decided to use recycled paper for decoration. There was a spirit of unity and harmony and all members supported each other. With mutual trust and belongingness the programme was systematically planned and executed. Kartik, one of the perfects realised that unknowingly the group had applied one of the principles of management while planning and executing the programme. He was so inspired by the success of the function that he asked his father to apply the same principle in his business. His father replied that he was already using this principle.
(a) Identify the principle of management applied for the success of the programme.
(b) State any two features of management highlighted in the above para.
(c) Identify any two values which 'Aapka Vidyalaya' communicated to the society. 

(a) Espirit de Corps: This principle forces on promo-ting team spirit of unity and harmony among employees.
(b) The features of management that are highlighted in the given paragraph are as follows:
(i) Goal Oriented: Management is goal oriented, as it has a pre-defined set of goals towards which the organization works. In the given case, the school has a set of pre-defined goals such as development of students and encouragement of team building. Also, the goal was set for the perfect execution of the Founder's Day Programme.
(ii) Group Activity: Management is a group activity, as it involves the collective efforts of various individuals working in the group. In the given case, the efforts of all the students and prefects were pulled in with mutual trust and support.

(c) The following values were communicated by 'Aapka Vidyalaya' to the society
(i) Environment protection and development by recycling paper.
(ii) Promotion of mutual trust and sense of belongingness among people.


On which principle of Fayol, Taylor's technique of functional foremanship is based?

Taylor's technique of functional foremanship is based on the principle of Division of Work. Division of Work talks about dividing the work into small groups for ease and efficiency. When a person with the required knowledge performs a task, he will give better results than a person with no knowledge. This is where the concept of specialisation comes into the picture. A big team with no specialised personnel but a single personnel with specialisation can give better results.


Explain the technique of scientific management that is extension of principle of division of work and specialisation.

The technique of Functional Foremanship is an extension of division of work and specialization. In this technique the workers are divided into small groups. Taylor suggested to have four experts each in two sub departments of Planning and Production. The four experts in the planning department are: Route clerk, Instruction Clerk, Time and cost clerk and Discipline officer. The four experts in the production department are: Gang boss, Speed boss, Repair boss and Inspector. 


Hina and Hitesh are typists in company having the same educational qualifications. Hina is getting $$Rs. 3,000$$ per month and Hitest $$Rs. 4,000$$ per month as salary for the same working hours. Which principle of management is violated in this case? Name an explain this principle.

The principle of Equity is violated in this case. In this case, both Hina and Himesh have same educational qualification but they receive different salaries from the company. This is clearly a case of discrimination on the basis of gender. The principle of Equity talks about treating all workers equally. No worker should be discriminated on the basis of age, gender, race, caste, creed etc. This principle ensures that every worker feels that he gets fair and just treatment from the company. This helps in maintaining a cordial relationship with the company. It also enhances the sense of loyalty towards the company and motivates the employees.


Which principle of management suggests that employees should not leave the organisation frequently? Give two adverse effects of violating this principle.

The principle of 'Stability of Tenure' suggests that employees should not leave the organisation frequently.
The adverse effects when this principle is violated are:
  1. It leads to wastage of resources and time since it would take more resources and time in recruiting, teaching and finally that worker getting used to the job.
  2. It also leads to dissatisfaction among the employees which will not let them to work with efficiency.


Name any two companies who have successfully applied standardisation and simplification of work.

Companies that have successfully applied standardisation and simplification of work are the world renowned companies Nokia and Ford.


The management of a company promises the workers to pay extra wages if they work overtime, but later on management refuses to pay extra wages. Which principle is violated in this case?

The principle of discipline is violated in the mentioned case. The Top level management is responsible for maintaining discipline in the organisation. In this case, the management made false promises. This breaks the trust between the management and the employees. If the management themselves involve in such activities then it is difficult to maintain discipline in the organisation.


In one of the principle of scientific management, Taylor emphasises that there should be equal division of work and responsibility between workers and management and management should work almost side by side with workers helping. Identify the principle.

The principle is 'Cooperation not individualism'. This principle emphasises on the management and the workers working together to achieve organisational objectives. This leads to a higher morale of employees. The relationship between the management and the workers remain cordial which enables the organisation to achieve their goals faster.


A sales person is asked to finalize a deal with customer. The marketing manager allows him to give a discount of upto $$10%$$ but the Finance Manager allows him to give discount upto $$25%$$. Which principle is violated here?

The principle of Unity of Command is violated in this case. The principle states that a worker should take orders from only one manager and should be answerable to him only. In this case the salesman is getting two different orders from two managers which makes him confused and does not allow him to come to a decision.


Purchase manager of $$ABC$$ Ltd. gave order to supply raw material @$$Rs. 1000$$ per quintal to his relative whereas same quality raw material is available @$$Rs. 900$$  per quintal by another supplier. This is violation of which principle of management? Explain that principle.

In this case, the purchase manager gave order to supply raw materials at a higher price than the market price which is a violation of the principle 'Subordination of Individual Interest to general interest'. This principle talks about putting the organisation's interest above one's own interest. If a manager works for the company keeping in mind the company's interests and objectives, it helps in a transparent work environment. Which then leads to a harmonious relationship between the management and the workers.


The production manager of Bharat Ltd. instruct a salesman to go slow in selling the products whereas the marketing manager is insisting of fast selling to achieve the target. Which principle of management is being violated in this case? State anyone consequences of violating this principle.

Clearly, this case is a violation of the principle of Unity of Command. The principle states that a worker should get orders from one boss and should only be answerable to him. In this case, having two bosses telling the salesman two different things creates confusion in his head. Since, both the bosses have given two different strategies, it leaves the salesman to pick and choose which is quite a difficult task for him.


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

Authority and Responsibility - This is the issue of commands followed by responsibility for their consequences. Authority means the right of a superior to give enhance order to his subordinates; responsibility means obligation for performance.


Mr. Kapoor, Finance manager of ABC Ltd. applied for leave to attend a family function in Amritsar. The director of the company requested his to cancel his leave as these is an important meeting schedule on that date. Mr. Kapoor immediately agreed and cancelled his trip as he thought attending meeting is more important for company's benefit.
Which principle of Fayol is applied by Mr. Kapoor?
Explain that principle.

1- Principle of subordination of individual intrest to general intrest.
2- Principle of subordination of individual intrest to general intrest- This principle states that general interest is superior to the individual interest. And the manager must try to integrate the individual goal with the organizational goal in such a manner so that both the objectives are accomplished with efficiency and effectiveness. The manager directs the employees in such a manner that they work for their objective and ultimately the organizational objective is achieved.


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 related to above situation.

 Principle of discipline is related to above situation.


Voltech Ltd. engaged in producing electricity from domestic garbage. There is equal division of work and responsibility between workers and management. The management even takes workers into confidence before taking important decision. All the workers are satisfied as the behaviour of management is good.

The principle of Taylor described in the above para is Co-operation, not Individualism.
It sates that there should be complete co-operation between the labour and the management. Competition should be replaced by co-operation.
Value which the company wants to communicate to the society are:
(a) Good behaviour in human interaction.
(b) Concern for the environment.


Mr. Mukesh used to manufacture shoes by employing who were easily available. When his son after completing his MBA joined the business, he analysed that if we use capital intensive method by using a machine it will reduce the cost and quality of shoes will also improve.
Which technique of Scientific management is used by his son.
What is the objective of that technique.

1-The systematic recording and critical examination of existing and. proposed ways of doing work as a means of developing and applying easier and more effective methods, and reducing costs.
2-The objectives of method study can be :
a. The improvement of processes and procedures.
b. The improvement of factory, shop and workplace layout.
c. The improvement of the design of plant and equipment.
d. Economy in human effort and the reduction of unnecessary fatigue.
e. Improvements in the use of materials, machines and manpower.
f. The development of a better physical working environment.
g. Improvement of quality of the products.


Principles of Taylor and Fayol are mutually complementary. One believed that the management should share the gain with the workers while the other suggested that employees compensation should depend upon the earning capacity of the company and should give them a reasonable standard of living. Identify and explain the principles of management by Taylor and Fayol referred to in para.

Taylor believed, ‘Management should share the gains with workers’. This has been emphasised by the principle of ‘harmony, not discord’, which is also emphasised by ‘mental revolution’.
Harmony, not discord The interests of the employer and employees should be fully harmonised, so as to create a good relationship. Taylor emphasised that there should be complete harmony between the management and workers. This requires a transformation in the thinking of both, which can be achieved through mental revolution. Thus, management should share the gains of the company with the workers.
At the same time workers should work and embrace changes. Taylor believed, that prosperity for the employer cannot exist for a long time unless it is accompanied by prosperity of the employees, and vice-versa. In the same way, Fayol’s principle of ‘remuneration of employees’ suggested that the employees compensation should depend on the earning capacity of the company and should give the employees a reasonable standard of living.
Remuneration of employees According to Fayol, the quantum and methods of remuneration payable to employees should be fair and reasonable. It should be satisfactory to both employers and employees. Thus, we can say that Taylor’s and Fayol’s principles are mutually complementary.


In a factory the toolbox was kept under the table of every worker, whenever worker needs tools he had to bend tape out tool from box and keep it back after use. The newly appointed supervisor observed it and suggested to keep a stool near every worker's chain where toolbox can he placed so that workers do not waste their energy in bending again and again.
Which technique of scientific management is used by New Supervisor.
State the objective of motion study.

1-Meaning of Motion Study:
The profounder of this concept was Frank Gilbesth. He defined motion study as the “Science of eliminating wastefulness resulting from ill-directed and inefficient motions”. The main aim of motion study is to find the scheme of least wastage of labour. Subsequently, the scope of Motion Study was enlarged and it was named as Method Study.
2- The important objectives of the motion study are:
1. To improve the process of doing work
2. To improve the design of work place layout
3. To find the best way of doing a job


One of the principle of Scientific management emphasizes to make the employees efficient, by training the workers. It further insists that each employee must be scientifically selected and work assigned to employees should suit their physical, mental and intellectual capabilities.
(i) Name and explain the principle of scientific management involved in above case.
(ii) Name the value emphasized by this principle.

(i) Development of each and every person to his/her greatest efficiency and prosperity Industrial efficiency depends upon the efficiency of workers and worker’s efficiency depends upon proper training and their proper selection. Taylor suggested that due care should be taken while selecting the employees and after selecting, they must be given a job according to their physical, mental and intellectual capabilities.
Employees must be sent for training from time to time to update their knowledge. This will ensure the greatest efficiency and prosperity for both workers and management.
(ii) Empowering each and every employee upto lowest level.


In the staff meeting the principal of the school raised objection that teachers start the teaching after $$5$$ to $$10$$ minutes in third floor classes. He warned them as students are complaining about this. The teachers explained the principal that when we climb steps from ground to third floor. We get some tiredness and need $$5$$ to $$10$$ minutes rest before starting the lecture. The principal planned to install lift in school so that teachers do not waste their energy on wasteful activity of climbing steps.
State the techniques of scientific management used by principal.
State any other technique of scientific management.

1. Fatigue study- Fatigue study is to study to understand how fatigue affects productivity. Reducing fatigue at the workplace has been the key aim of every organization as it affects productivity adversely. Glaring light could affect fatigue in an employee.
2. The other techniques of scientific management are:
     a. Differential Piece Wage Plan
     b. Standardization
     c. Functional Foremanship
     d. Motion Study


The production department of Alpha Ltd. was not performing well on detailed analysis, it was observed that the workers of that department were overburdened. They were forced to work for longer hours without any break. So the management planned to replace the production manager. They appointed Mr. Hari as the new Production manager. He observed the average worker and note down their times. He noted down the time they worked and the time they required to be fresh join back the work. Based on this observation, he set the break intervals for workers. He have small breaks to workers to recharge their energy.
(i) Name and explain the technique of scientific management used by Mr. Hari.
(ii) State the value which Mr. Hari wants to communicate to the society by allowing rest intervals to workers.

(i) Fatigue study
 Fatigue study is to study to understand how fatigue affects productivity. Reducing fatigue at the workplace has been the key aim of every organization as it affects productivity adversely. Glaring light could affect fatigue in an employee.
(ii) The employee should be provided adequate rest so as to increase their efficiency.


Discuss the following techniques of Scientific work study:
(a) Time study
(b) Motion study
(c) Fatugue study
(d) Method study
(e) Standardisation and simplification of work.

(a) Time Study– In this technique Taylor emphasised on setting a standard time limit for completing any particular job. With the help of time measuring tools, considerable readings were taken for the time taken to complete a task. On the basis of this a standard time limit is set for each task. This helped in deciding the number of workers to be employed for the task, determining their wages, etc. For example, if, on the basis of observations it is determined that one person can finish making 1 shirt in two hours then, in a working day of 8 hours, each worker should make 4 shirts.

(b) Motion Study– As the name suggests, motion study refers to the study of motion (movements) involved while undertaking a task. This technique aims at removing the unwanted actions/motions so that the work can be completed in a lesser time. Taylor along with his associate Frank Gailberth observed the motions of a worker and categorised them as productive, incidental and unproductive. They demonstrated that by eliminating the unproductive movements productivity can be increased. For example, in brick layering they demonstrated that productivity increased by nearly 4 times by reducing the motions from 18 to 5.

(c) Fatigue Study– This technique is regarding requirement of rest or break during the work. If a worker works continuously physical and mental fatigue sets. This reduces his/her efficiency. Thus, the worker requires rest or break. Fatigue study identifies the intervals required while completing a task. It suggests that standard break timings should be decided for improving the working performance of workers.

(d) Method Study– This study aims at finding out the best method of completing any work. It takes into account each and every activity involved in the task. It helps in reducing the costs and maximising the satisfaction of the customers. Assembly line production, used by Ford Motors is a popular example of method study.

(e) Simplification and Standardization of Work– Taylor holds up standardization as the very basis of techniques of scientific management. Standardization as the word suggests implies setting of milestones or benchmarks for any work or activity. Various other techniques by Taylor, such as method study, fatigue study and time study are also based on the concept of standardization.


The manager of ABC Ltd. asked his workers to work overtime to increase the production and earn more but he did not paid extra wages to workers for extra time worked. The workers feeling dissatisfied and stop contributing maximum.
which principle of Fayol is violated in the above case
Explain that principles.

1- Principle of remuneration
2- Principle of remuneration- Fayol is of the view that each employee must get fair remuneration so that the employee, as well as the owner, gets the same amount of satisfaction. The remuneration system must be such which provides for the adequate remuneration to the employees, motivates the employee to perform better, and may ensure safety & security, raise the standard of living of the employees.


Explain the Principle of Scientific management given by Taylor.

Principles of Scientific Management: Propounded by Taylor-
(a)- Science, Not Rule of Thumb:
In order to increase organisational efficiency, the ‘Rule of Thumb’ method should be substituted by the methods developed through scientific analysis of work.
Rule of Thumb means decisions taken by a manager as per their personal judgments. According to Taylor, even a small production activity like loading iron sheets into boxcars can be scientifically planned. This will help in saving time as well as human energy. Decisions should be based on scientific inquiry with cause and effect relationships.
(b)- Harmony, Not Discord:
Taylor emphasized that there should be complete harmony between the workers and the management since if there is any conflict between the two, it will not be beneficial either for the workers or the management.
Both the management and the workers should realize the importance of each other. In order to achieve this state, Taylor suggested complete mental revolution on the part of both management and workers.
(c)-  Mental Revolution:
The technique of Mental Revolution involves a change in the attitude of workers and management towards each other. Both should realize the importance of each other and should work with full cooperation. Management, as well as the workers, should aim to increase the profits of the organisation.
(d)-  Cooperation, Not Individualism:
This principle is an extension of the principle of ‘Harmony, not discord’ and lays stress on mutual cooperation between workers and the management. Cooperation, mutual confidence, sense of goodwill should prevail among both, managers as well as workers. The intention is to replace internal competition with cooperation.
(e)- Development of each and every person to his or her greatest efficiency and prosperity:
The efficiency of any organisation also depends on the skills and capabilities of its employees to a great extent. Thus, providing training to the workers was considered essential in order to learn the best method developed through the use of the scientific approach. To attain the efficiency, steps should be taken right from the process of selection of employees. Employees should be scientifically selected.


Discuss the relevance of Taylor and Fayol's contribution in the contemporary business environment.

Scientific management - it involves observing people just like the way scientist observe their experiments. scientific management uses the idea of division of labour and specialisation. Thus, he generated the idea of producing more efficiency since, Taylor's idea relate to producing a more quantity of output. the bottom line is, he uses the least of resources (hire fewer employees but the employees are expert) to produce the maximum output. 
Taylor's idea are still being practiced today. i.e. the Ford motor company, fast-food restaurant (McD).


Explain the following Principle of Management by Fayol with examples:
(a) Unity of direction
(b) Equity
(c) Esprit de corps
(d) Order
(e) Centralisation and decentralisation
(f) Initiative.

(a) Unity of Direction: According to this principle, each unit of the organisation should work towards a common objective. According to it, units having same goals should have a single head and plan. This principle helps in eliminating the overlapping of work. For example, if an organisation is engaged in the manufacturing of two products, then each should have its own separate department and divisions with their respective heads and plans.

(b) Equity: This principle focuses on treating each employee fairly equally. That is, it states that each employee should be equal in the eyes of the manager. Although this principle calls for kindliness in the behaviour of the manager, however sometimes force can also be used to set an example for other employees. In addition, the workers should be regarded as equal grounds of religion, language, caste, etc. This helps in building an amiable environment. For example- if workers from different religions or nationalities are working in the same organisation then no discrimination should be done against any.
(c) Espirit de Corps: This principle recommends that employees should work in unity with each other. They should work as a team. In other words, team spirit should be promoted by the manager. Each employee should have a sense of belongingness. This proves useful especially in large organisations where without team work, achievement of objectives would become difficult. Team sprit increases coordination and mutual understanding among the employees and thereby improves efficiency. 
(d) Order: Orderliness principle focuses on right arrangement of things. Everything and everyone should be at their respective places, in short ‘right people at right place and at right time’. This helps in carrying out the tasks smoothly. For example, if files are kept in a certain order then this will help in locating the file easily when required. Violation of this principle leads to chaos and delay in work.
(e) Centralisation and Decentralisation: Centralisation refers to the consolidation of power and authority to one or only few hands. Here, the decision making power gets reserved to the centre point of an organisation. On the other hand, decentralisation refers to the delegation of authority to more than one level. According to Fayol, the involvement of the employees with the higher authority should be balanced by decentralising the authority to the managers. For example, if the CEO of a company is responsible for decision making for the entire organisation then, this is centralisation of power. On the other hand, if the decision making power is delegated to managers at the middle and lower level then, this will be called decentralisation.
(f) Initiative– According to this principle, workers should be given enough motivation and incentive to work. They should be inspired to come up with suggestions for regarding the work. Although initiatives should be encouraged, but they should be in line with the practices and rules of the organisation. For example, the managers can ask the workers for their inputs over how to increase efficiency. Also, good suggestions can be rewarded


Mr. Rajiv is the owner of 'Laxmi Dairy'. He is producing various milk products. He always tests various ways of producing different products and choose the best and most economical way of production. He is also very particular about fixing a place for everything and he makes sure that all the employees are given a fixed place so that there is no wastage of time and delay in production.
Which technique of scientific management is applied by Mr. Rajiv?
Which principle of Henry Fayol is followed by him?

1)- Method study 
2) - Principle of order.


Mr. Rajiv the senior manager of Unique enterprise considered himself very wise and used to take all the decisions himself without consulting the employees, he never used to help any one nor he used to take help of anyone. The employees of unique enterprise were not working efficiently and company's profit margin started declining to tackle the problem, the company appointed a new manager from IIm Bangalore. The new manager after joining made a policy that all the decisions will be taken after consulting employees in the meeting. All employees must give some suggestions and best suggestions will be rewarded with financial and nonfinancial incentives. This policy had a very positive effects on company.
State and explain the principle of Henry Fayol used by new manager.

1)- Principle of  initiative- ‘Initiative’ means to start, to begin or to instruct in a project. Here, in this principle, Fayol suggested that each employee should be given an opportunity to take some initiative in framing the functional plan as well as in determining the steps to be taken at each level for proper execution of the plan.
- Cooperation, not individualism- ‘Cooperation’ means acting jointly, or a union towards achieving the same result. Taylor emphasized that the workers and the management should act jointly and in unison to achieve the organizational objectives. Management, as well as the employees, are basically the two important component of the organization and without them, the organization cannot work properly.

This principle states that the work should be done in cooperation and with mutual confidence. Employees and management should co-operate with each other. The best way to gain full cooperation from the workers is that the management should try to set the goals and standards in consultation with the workers so that they feel that the goal is set by them and as a result of a psychological factor they will co-operate sincerely and willingly to achieve the determined goal.


Give suitable examples for the principle of division of labour. 

The division of work is the course of tasks assigned to, and completed by, a group of workers in order to increase efficiency. Division of work, which is also known as division of labor, is the breaking down of a job so as to have a number of different tasks that make up the whole. This means that for every one job, there can be any number of processes that must occur for the job to be complete.
For example- manufacturing unit dividing its task of production of goods among various employees.


Briefly explain the principles of scientific management. 

(1) Science, Not Rule of Thumb:

This principle says that we should not get stuck in a set routine with the old techniques of doing work, rather we should be constantly experimenting to develop new techniques which make the work much simpler, easier and quicker.
(2) Harmony, Not Discord:
As per this principle, such an atmosphere should be created in the organisation that labour (the major factor of production) and management consider each other indispensable.
Taylor has referred to such a situation as a ‘Mental Revolution’. Taylor firmly believed that the occurrence of a mental revolution would end all conflicts between the two parties and would be beneficial to both of them.
(3) Cooperation, Not Individualism:
According to this principle, all the activities done by different people must be carried on with a spirit of mutual cooperation. Taylor has suggested that the manager and the workers should jointly determine standards. This increases involvement and thus, in turn, increases responsibility. In this way we can expect miraculous results.
(4) Development of Each and Every Person to His / Her Greatest Efficiency and Prosperity:
According to this principle, the efficiency of each and every person should be taken care of right from his selection. A proper arrangement of everybody’s training should be made.
It should also be taken care that each individual should be allotted work according to his ability and interest. Such a caring attitude would create a sense of enthusiasm among the employees and a feeling of belongingness too.


"Fayol's principles of equity and order can be applied in actual work situation." Do you agree? 

Equity This principle emphasises kindliness and justice in the behaviour of managers towards workers. It will bring loyalty and devotion in the behaviour of employees and they will put their best to achieve the targets.
For example, individuals performing similar jobs in Kapura Ltd are paid at the same wage rate.
Order As per this principle, there should be an orderly arrangement of men and material which implies that there is a fixed place for everything and everyone in the organisation.
A place for everything, called material order, and a place for everyone, called social order, ensures that there is no hindrance in the activity going on in the organisation.
For example, for the Head of a Sales Department a cabin is allotted, for typist a single table and for a foreman a proper area should be allotted to supervise workers.
These individuals should remain in their allotted places during the working hours, so that they may be easily approached whenever necessary. Violation of this principle would cause chaos and leads to inefficiency.


Describe the principle of co-operation between workers and management.

1 Voluntary and Open Membership
Cooperatives are voluntary organizations, open to all persons able to use their services and willing to accept the responsibilities of membership, without gender, social, racial, political or religious discrimination.
 2 Democratic Member Control : Democratic Member Control
Cooperatives are democratic organizations controlled by their members, who actively participate in setting their policies and making decisions.  Members serve as elected representatives are accountable to the membership. In primary cooperatives members have equal voting rights: 1 member, 1 vote. 
3 Economic Member Participation
Members contribute equitably to, and democratically control, the capital of their cooperative. At least part of that capital is usually the common property of the cooperative.
Members allocate surpluses for any or all of the following purposes: developing their cooperative, possibly by setting up reserves, part of which at least would be indivisible; benefiting members in proportion to their transactions with the cooperative; and supporting other activities approved by the membership.   
4 Autonomy and Independence Cooperatives are autonomous, self-help organizations controlled by their members. If they enter to agreements with other organizations, including governments, or raise capital from external sources, they do so on terms that ensure democratic control by their members and maintain their co-operative autonomy. 
5 Education Training and Information Cooperatives provide education and training for their members, elected representatives, managers, and employees so they can contribute effectively to the development of their cooperatives. They inform the general public - particularly young people and opinion leaders - about the nature and benefits of cooperation.
6 Cooperation Among Cooperatives. Cooperation among Cooperatives
Cooperatives serve their members most effectively and strengthen the cooperative movement by working together through local, national, regional and international structures.
7 Concern for Community: Concern for Community
Cooperatives work for the sustainable development of their communities through policies approved by their members.


What is the basic difference between unity of command and functional foremanship? 

Unity of command is when a worker follows the order of the boss at a time while functional foreman-ship is when a worker gets order under two departments like ( production and planning ) from different boss.
Unity of command is also related to effective functioning of subordinate in the organization.  Functional foreman-ship says that one individual can not be expert in all fields hence work is being divided between eight specialists in different areas like spread boss, gang boss, inspector, repair boss and etc.


"Management principles are evolutionary." Explain.

Management principles are not made in heavens; they have emerged gradually, through an evolutionary process of combining deep observations and experimental studies. 
  • Observation method : Under this method, practical events are observed and analyzed by managerial researchers to derive management principles.
For example, it was observed that by dividing the work into different units, efficiency of employees improved. As a result, it led to formulation of principle of 'division of labour'.
  • Experimental method : Under this method, experiments are conducted so that management principles can be derived and their validity can be tested. For example, two units, one unit involving one superior and one subordinate and other unit involving two superiors and one subordinate, were taken. It was found that unit having one superior and one subordinate performed better. As a result, it led to formation of principle of "unity of command." 
From the above it can be concluded that observations and experiments result in the formulation of management principles which therefore are evolutionary. Hence, derivation of management principles can be said to be a matter of Science. It is worth mentioning here that even though derivation of management principles is a matter of science, their application remains a matter of art. The success of managers depends upon how skillfully they put these principles into practice.


Distinguish between principle of unity of command and unity of direction on the basis of (a) Meaning, (b) Aim.

 On the basisUnity of command  Unity of direction
 Meaning one sub-ordinate should receive orders from boss only Each group of activities should have one head and one plan.
 Aim Avoids dual subordination Avoids overlapping of activities.


Illustrate the following principles with suitable examples:
(a) Principle of stability of tenure. (b) Principle of initiative. 

Rekha, a Manager of Solutions Ltd recruited twenty new employees. She kept these employees in an organisation for a period of one year, so that the employees become familiar with their jobs and can contribute their best to the realization of goals.
The above-stated example clearly defines the principle of ‘stability of tenure’, which states that an employee should be placed at the position for a minimum fixed tenure so that he/she can contribute his best towards the attainment of goals.

Initiative Principle
An initiative is the eagerness to start actions without being told to start them. For example, when you were a young child, your mom and dad probably had to constantly tell you to clean your room. As you continued to grow and became a teenager, you probably started cleaning your room without being told to do it. You obtained the initiative to clean your room.


State any three principles of Taylor.

Taylor is based upon the following  principles:
(1) Science, Not Rule of Thumb: 
(2) Harmony, Not Discord:
(3) Cooperation, Not Individualism:
(4) Development of Each and Every Person to His / Her Greatest Efficiency and Prosperity:


What do you mean by simplification of work?

Work simplification is the organized application of common sense to eliminate waste of any kind, such as time, energy, space and imagination through simpler or better ways of doing work. Whether they know it or not, business analysts are specialist in the use and application of work simplification techniques.


Explain the method study and the technique of simplification as developed by Taylor.

Method Study:
It refers to identify the most suitable way to do a particular activity. To conduct this study, process chart and operation research techniques are used. The main objective of this study is to minimise the cost of production and maximise the quality and level of consumer satisfaction.
Technique of simplification-
(i) Effecting economy in the use of machines.
(ii) Bringing down the labour cost with the help of specialisation. (The benefits of specialisation can be obtained by restricting specialisation only to a few products.)
(iii) Affecting economy in the staff.


How do the techniques of scientific management improve productivity of workers? 

The technique of scientific management has helped in improving the productivity of the workers in the following manners:
1. It establishes better relations between labour and management.
2. Profit is increased many times due to effective integration of right men, materials, money and method.
3. The use of standardized raw materials, equipments, machines and method produce standard article at minimum possible price.
4. It enables the management to reduce the cost of production.
5. It helps in providing better working condition and higher standard of living.


Bring out the importance of management principles.

Following are the main importance of the Principles of Management.

  • Improves Understanding.
  • Direction for Training of Managers.
  • Role of Management.
  • Guide to Research in Management.


Explain any five techniques of "Scientific Management".

Scientific Setting of Wage Rates:
Wage rates should be fixed in such a way that the average worker is induced to attain a standard output. Taylor suggested the differential piece- wage system. Under this system, higher rates are offered to those workers who produce more than the standard quantity. Taylor was of the view that efficient workers should be paid, from 30% to 100% more than the average workers.
Scientific Selection and Training:
The management should design a scientific selection procedure so that right man is selected for the right jobs. The first step in scientific selection is determining the jobs for which workers are required. After that the most appropriate qualification, training, experience and the level of efficiency for the requisite post are determined. Employees are selected according to pre-determined standards in an impartial way.
Functional Foremanship:
Taylor advocated that specialization must be introduced in a factory. He advocated ‘functional foremanship’ for this purpose. A functional foremanship is a form, of organisation which involves the supervision of a worker by several specialist foremen. For instance, matters relating to the speed of work and repairs of machinery will be supervised by the speed boss and the repair boss respectively.
Differential Piece-Rate Plan:
This plan was suggested by Taylor to attract highly efficient workers. Under this plan, there are two piece work rates, one is lower and another is higher. The standard of efficiency is determined in terms of a number of units during a day or standard same. The worker who produces more than standard output within the standard time.
Standardisation of Tools and Equipment:
Taylor advocated standardisation of tools and couplings, cost system and several other items. Efforts should be made to provide standardised working environment and methods of production to the workers. Standardisation would help to reduce spoilage and wastage of materials, improve quality of work, reduce the cost of production and reduce fatigue among the workers.


Explain the nature of management principles.

Management principles are relative, not absolute, and they should be applied according to the need of the organization. A particular management principle has different strengths in different conditions. Therefore, principles should be applied according to the prevailing conditions.


Explain the principle of discipline and principle of subordination of individual interest to general interest.

  •  Discipline
This third principle of the 14 principles of management is about obedience. It is often a part of the core values of a mission and vision in the form of good conduct and respectful interactions. This management principle is essential and is seen as the oil to make the engine of an organization run smoothly.
  • Subordination of Individual Interest
There are always all kinds of interests in an organization. In order to have an organization function well, Henri Fayol indicated that personal interests are subordinate to the interests of the organization (ethics). The primary focus is on the organizational objectives and not on those of the individual. This applies to all levels of the entire organization, including the managers.


Taylor's principles of scientific management and Fayol's principles of management are mutually complementary. Do you agree with this view? Give any five reasons.

 on the basis Taylor Fayol
 Personality Taylor was a scientist Fayol was a practitioner
 Perspective Taylor's principles & techniques are based on bottom upward approach Fayol's principles are based on top downward approach
 Scope and Applicability Taylor's principles & techniques are relevant mainly with respect to production activities Fayol's principles have wider relevance in all functional areas
 Focus Taylor's' principles & techniques are focused on workers' efficiency and production. Fayol's principles are focused on improving overall management efficiency.
 Modifications Taylor's techniques are more specific in nature and should be applied without any modification and only in specific conditionsFayol's principles are more general in nature & can be applied in most of the organizations with some modifications. 
    Yes, Taylor's principles of scientific management and Fayol's principles of management are mutually complementary because of the following reasons





Write a note on functional foremanship.

Functional foremanship is a factory management technique that advocates for having multiple foremen in different, specialized roles. Traditionally, factories had just one foreman who would oversee operations. This foreman was the only direct contact for factory workers. Frederick Winslow Taylor, the famous engineer who revolutionized scientific management around the end of the 19th century, found a major flaw in this system. When he listed all of the qualities a successful foreman would need, he realized that no one person could possibly have every single one. Thus, the concept of functional foremanship was born.


Explain with suitable example the technique of differential piece race system.

Definition: Taylor’s Differential Piece-Rate System was introduced by F.W. Taylor, who believed that the workers should be paid on the basis of their degree of efficiencies. Under this method, with the help of Time and Motion Study, the standard time for the completion of a job is fixed on the basis of which the performance of the workers is evaluated.Taylor’s differential piece-rate system posits that the worker who exceeds the standard output within the stipulated time must be paid a high rate for high production. On the other hand, the worker is paid a low rate if he fails to reach the level of output within the standard time. Thus, there are two piece-rates, one who reach the standard output or exceeds it, is paid 120 percent of the piece rate. While the one who fails to reach the standard level of output, is paid 80 percent of the piece-rate. The minimum wages of the worker are not guaranteed.


Explain any five techniques which facilitate the application of scientific principles. 

Taylor’s Techniques of Scientific Management
(i) Work study techniques FW Taylor conducted a number of experiments in various areas of production.
Time study It refers to determine the standard time required to complete a particular activity.
Motion study This is the analysis of physical movements in doing a work.
Method study It refers to identify the most suitable way to do a particular activity.
Fatigue study Study of the nature of work to determine the standard time for finishing the job and to find out when the workers need rest.
(ii) Functional foremanship There should be specialist foremen for each job.
(iii) Standardisation It refers to the process of setting standards for every business activity.
(iv) Simplification It aims at eliminating unnecessary varieties, sizes and dimensions of products.
(v) Differential piece wage system Wages are paid on the basis of amount of work done and not on the basis of time spent in doing the work.
(vi) Mental revolution It refers to change in mind on the part of both sides to industry, viz workers and management, towards another from competition to corporation.


Why may Taylor's techniques of scientific management not be applicable to all types of organisations?

Taylor’s techniques of scientific management are not applicable to all types of organisations because they are more specific in nature and should be applied only in specific conditions.


What is the main objective of 'Fatigue study?

The main objective of fatigue study is to determine the amount and frequency of the break time or rest intervals in order to complete a task or the job. It is mainly done in order to improve and boost the efficiency level of the staff or the employees.


Which principle of management is violated if a subordinate is asked to receive orders from two or more superiors?

Principle of ‘unity of command’ is violated.


State any two points which highlight the nature of principles of management.

 Following points highlight the nature of principles of management:
(i) They are universal.
(ii) They are flexible.


Give any one reason why principles of management do not provide ready-made solution to all managerial problems.

 Principles of management do not provide readymade solution to all managerial problems because principles provide general guidelines to managers whereas real business situations are extremly complex and not based on theoretical knowledge


What did Taylor want to communicate through 'Mental Revolution'?

Mental revolution involves a change in the attitude of workers and management towards one another, from competition to cooperation. This is what Taylor want to communicate through mental revolution.


 Which technique of Taylor is the extension of the principle of 'division of work' and 'specialisation'?

Functional foremanship  technique of Taylor is the extension of the principle of 'division of work' and 'specialisation'.


How have the management principles been derived?

The management principles are derived in the following two ways:

(i) On the basis of observation Fayol developed

management principles on the basis of observation, e.g. ‘division of work’ tells us that in order to achieve efficiency, divide the work into small tasks.

How can this analysis be made? It is only made by those managers who observed that division of work leads to specialization.

(ii) On the basis of experimentation All the principles of management establish a cause-and-effect relationship between variables, which means that they are developed on the basis of experimental studies.



Why did Taylor develop the technique of differential piece-wage system?

Taylor developed the technique to differentiate efficient and inefficient workers and to suitably reward the effecient workers.


What is the main objective of simplification management?

Work simplification is the organized application of common sense to eliminate waste of any kind, such as time, energy, space and imagination through simpler or better ways of doing work. Whether they know it or not, business analysts are specialist in the use and application of work simplification techniques. The business analyst’s role involves ensuring the proper use and application of these techniques and working closely with the team to develop, test and install the improvements made.
objective of simplification management-
  • Eliminate the unnecessary parts of a process
  • Combine and rearrange the rest of the process
  • Simplify the necessary part of the process


Which principle of management implies that there should be 'ONE HEAD AND ONE PLAN' 1 for a group of activities having the same objective?

Principle of unity of direction implies that there should be ‘one head and one plan’ for a group of activities having the same objective.


Distinguish between the principles of 'Unity of Command' and 'Unity of Direction' on the basis of 'Aim'.

On the basis of aim-
Unity of command- it avoids dual subordination.
Unity of direction- it avoids overlapping of activities.


Give any one reason why principles of management are called contingent.

Principles of management are contingent as their application is dependent upon the prevailing situations at a particular point of time.


Name the principle of Scientific Management which suggests the introduction of scientific investigation and analysis.

Science, not rule of thumb.
is the basic principle of scientific management as formulated by Taylor. The idea of scientific management originates from science and as is this principle. For managing activities in a scientific manner we have to start with understanding, analyzing and applying scientific methods and techniques. This principle is all about the use and application of scientific methods and techniques in performing the activities.


Which technique of Taylor differentiates between an efficient worker and an inefficient worker? 

Differential piece wage system differentiates between an efficient worker and an inefficient worker.


What is meant by Fayol's principles of 'Esprit de corps? 

Esprit de Corps
The management principle ‘esprit de corps’ of the 14 principles of management stands for striving for the involvement and unity of the employees. Managers are responsible for the development of morale in the workplace, individually and in the area of communication. Esprit de corps contributes to the development of the culture and creates an atmosphere of mutual trust and understanding.


Why have the 'Principle of Management' gained importance these days?

  • Provides insights : Management principles play a key role in providing insights to facilitate efficient decision making. These principles adds to their knowledge and ability to deal with various situations and also helps in handling recurring contemplated problems. Thus it plays a role in increasing managerial efficiency.
  • Optimal Utilization of Resources : Resources are the life blood of a business. Its optimal usage is a sine qua non for the success of a business. Management principles helps in ensuring optimal usage by laying down broad frameworks on how to use these resources and how not to. This when applied in proper situations can make for efficient resource decisions. These principles are also applicable to resource collection or organisation, so as to prevent wasteful accumulation of scarce resources.
  • Effective Administration : Administration of a business is a part and parcel of management. Principles of Management plays a key role in administering the business by helping in the regulation of the human resources among each other and also by prescribing norms of relations. These norms when followed leads to established beneficial results. For example, decentralization as a principle helps in administration by giving adequate power to many units across the business to ensure compliance and efficiency.
  • Scientific Decisions : The decisions made by following these principles are scientific decisions. It is scientific in the sense that it is made with due regard to logic, reason and facts and it is rational. Rational decisions always ensures efficiency within a business and helps in its success.
  • Adapting to Changes : Management principles as already mentioned are general guidelines which is to be applied differently in different situations. Different management principles are contemplated for different situations. So when a situation changes, a different management principle apt to the new situation thereby allows adapting to changes.
  • Fulfilling Social Responsibility : Management principles plays a vital role in fulfilling the responsibility the business owes to the society. Businesses being social entities have social responsibilities for the benefits they derive from the society. Management principles such as ensuring optimal resources etc makes sure that the business does not bring harm to the society and also that it benefits the society.
  • Basis of Management Studies : Management principles lie at the base of management education. All the knowledge imparted to the students of management are derived from management principles. This understanding conferred by virtue of being based on management principles helps in developing managerial talent.


State anyone principle of scientific management. 

Esprit de Corps
The management principle ‘esprit de corps’ of the 14 principles of management stands for striving for the involvement and unity of the employees. Managers are responsible for the development of morale in the workplace; individually and in the area of communication. Esprit de corps contributes to the development of the culture and creates an atmosphere of mutual trust and understanding.


Give any one reason why principles of management are not rigid prescriptions.

Principle of Management are not rigid prescriptions because they can be modified according to the changing conditions and in special situations.


Name the following principle of management:
(a) That prevents dual subordination.
(b) That prevents overlapping of working of two divisions.

(a)-Unity of command
(b)-unity of direction


Explain 'Science Not Rule of Thumb' as a principle of Scientific Management.

Science, Not Rule of Thumb:
In order to increase organisational efficiency, the ‘Rule of Thumb’ method should be substituted by the methods developed through scientific analysis of work. Rule of Thumb means decisions taken by manager as per their personal judgments. According to Taylor, even a small production activity like loading iron sheets into box cars can be scientifically planned. This will help in saving time as well as human energy. Decisions should be based on scientific enquiry with cause and effect relationships.


Explain how principles of management:
(i) help in optimum utilization of resources and effective administration,and
(ii) help the managers in meeting changing environment requirements.

(i) Principles of management help in optimum utilization of resources by equipping managers to foresee the cause and effect relationships thereby reducing the wastages associated with trial and error approach.
Principles of management help in effective administration by limiting the boundaries of managerial discretion so that decisions are free from personal prejudices.
(ii) Principles of management help the mangers in meeting requirements of changing environment because they can be modified according to the changes taking place in the environment.


How do principles of management help managers in taking decisions scientifically? State.

Principles of management help managers in taking decisions scientifically as the knowledge of management principles enables managers to learn the cause and effect relationship between variables operating in the organisation. They are able to develop a scientific and objective approach towards problem solving and decision-making.


How do principles of management help managers in meeting the requirements of the changing environment? State.

Principles of management help managers in meeting the requirements of the changing environment principles of management help managers in meeting the requirements of the changing environment as Every businessman has to cope up with the changes that are taking place in the business environment. Management principles train the managers to implement the changes in right direction and at right level in the organisation.


Name the principles of scientific management which emphasises on study an analysis of methods rather that estimation.

SCIENCE, NOT RULE OF THUMB. Rule of Thumb is the basic principle of scientific management as formulated by Taylor.  'Rule of Thumb' means the application of traditional methods or the methods decided by the manager based on his past experience




Explain how Principles of Management:
(i) Provide useful insight into reality and
(ii) Help in thoughtful decision making.

Management principles are important as they provide
(i) Useful insights into reality : Principles help managers to improve their knowledge and understanding of managerial situations. These principles enable managers to learn from past mistakes - and conserve time by solving recurring problems quickly. Hence, we can say, these principles provide managers an insight of real world situations.
(ii) Thoughtful decision-making : Management principles help in thoughtful decision-making because they are based on logic rather than blind faith. Such decisions are free from bias and prejudice. These principles develop scientific approach as they give a realistic and subjective measurement for evaluation.


Name and explain the principle of management according to which a manager should replace "I" with "we" in all this conversation with the workers.

Esprit de corps It is the principle of management, according to which a manager should replace ‘I’ with ‘We’ in all his conversation with workers.
Literally speaking, the phrase ‘esprit de corps’ means the spirit of loyalty and devotion which unites the members of the group.
According to Fayol, management should promote a team spirit of unity and harmony among employees. A manager should replace ‘I’ with ‘We’ in all his conversation with workers to foster team spirit. This will give rise to a spirit of mutual trust and belongingness among team members.


Explain how Principles of Management:
(i) help in optimum utilization of resources and effective administration and
(ii) help in thoughtful decision-making.

(i) Principles of management help in optimum utilization of resources by equipping managers to foresee the cause and effect relationships thereby reducing the wastages associated with trial and error approach. Principles of management help in effective administration by limiting the boundaries of managerial discretion so that decisions are free from personal prejudices.
(ii) Thoughtful decision-making : Management principles help in thoughtful decision-making because they are based on logic rather than blind faith. Such decisions are free from bias and prejudice. These principles develop scientific approach as they give a realistic and subjective measurement for evaluation.


Explain 'Harmony not Discord' on Principle of Scientific Management.

Harmony, Not Discord:
Taylor emphasized that there should be complete harmony between the workers and the management since if there is any conflict between the two, it will not be beneficial either for the workers or the management.
Both the management and the workers should realize the importance of each other. In order to achieve this state, Taylor suggested complete mental revolution on the part of both management and workers.


How do principles of management help managers in fulfilling social responsibility? State.

The principles of management increase the efficiency of the managers and enable them to fulfill their social responsibility.  For example, the principle of 'Fair Remuneration' advocates appropriate remuneration to the employees and helps in fulfilling responsibility towards them.


Explain 'unity of command' and 'equity' as principles of general management.

 Unity of Direction
This management principle of the 14 principles of management is all about focus and unity. All employees deliver the same activities that can be linked to the same objectives. All activities must be carried out by one group that forms a team. These activities must be described in a plan of action. The manager is ultimately responsible for this plan and he monitors the progress of the defined and planned activities. Focus areas are the efforts made by the employees and coordination.

Equity
The management principle of equity often occurs in the core values of an organization. According to Henri Fayol, employees must be treated kindly and equally. Employees must be in the right place in the organization to do things right. Managers should supervise and monitor this process and they should treat employees fairly and impartially.


State any four features of 'Principles of Management'.

The main features of management principles are given below:
  • Universal application
  • General guidelines
  • Evolutionary/formed by practice and experiments
  • Flexibility
  • Behavioral in nature
  • Based on cause and effect relationship
  • Contingent


Explain how principles of management provide
(a) useful insight reality (b) thoughtful decision-making

Management principles are important as they provide
(i) Useful insights into reality : Principles help managers to improve their knowledge and understanding of managerial situations. These principles enable managers to learn from past mistakes - and conserve time by solving recurring problems quickly. Hence, we can say, these principles provide managers an insight of real world situations.
(ii) Thoughtful decision-making : Management principles help in thoughtful decision-making because they are based on logic rather than blind faith. Such decisions are free from bias and prejudice. These principles develop scientific approach as they give a realistic and subjective measurement for evaluation.


Explain 'order' and 'initiative' as principles of general management.

Order
According to this principle of the 14 principles of management, employees in an organization must have the right resources at their disposal so that they can function properly in an organization. In addition to social order (responsibility of the managers) the work environment must be safe, clean and tidy.

Initiative
Henri Fayol argued that with this management principle employees should be allowed to express new ideas. This encourages interest and involvement and creates added value for the company. Employee initiatives are a source of strength for the organization according to Henri Fayol. This encourages the employees to be involved and interested.


Explain that technique and scientific management which is the strongest motivator for a worker to reach standard performance.

Differential piece wage system- 
A differential piece-rate system is a method of wage payment in which after tests have set a standard time for any task assigned the worker gets a high piece rate for completing the job within the allotted time and lower piece rate for completing the job beyond the allotted time. F.W. Taylor gave a method of differential piece-rate system with the name Taylor’s differential piece-rate system as a part of the scientific management.


Explain 'Co-operation, Not Individualism' as a principle of Scientific Management.

Cooperation, Not Individualism:
This principle is an extension of principle of ‘Harmony, not discord’ and lays stress on mutual cooperation between workers and the management. Cooperation, mutual confidence, sense of goodwill should prevail among both, managers as well as workers. The intention is to replace internal competition with cooperation.


Explain the following principle of management:
(a) Scalar chain (b) Science, not Rule of Thumb

(a) Principle of Scalar Chain and Gang plank
The formal lines of authority from highest to lowest ranks are known as scalar chain. According to Fayol,
“Organisation should have a chain of authority and communication that runs from top to bottom and should be followed by managers and subordinates.”
(b) Science, Not Rule of Thumb When different managers use their own different methods to get the work done it is rule of thumb. Taylor believed that there was only one best method to maximise efficiency. Taylor advised that every organisation should compare the results of different methods, test them again and again and finally select one best method of getting the work done.


Explain the technique of scientific management which separates the planning and execution work.

 Functional foremanship.-
Functional foremanship is a factory management technique that advocates for having multiple foremen in different, specialized roles. Traditionally, factories had just one foreman who would oversee operations. This foreman was the only direct contact for factory workers. Frederick Winslow Taylor, the famous engineer who revolutionized scientific management around the end of the 19th century, found a major flaw in this system. When he listed all of the qualities a successful foreman would need, he realized that no one person could possibly have every single one. Thus, the concept of functional foremanship was born.


Explain the technique of scientific management that is the extension of 'Principle of Division of Work and Specialisation'.

Functional foremanship -
Functional foremanship is a factory management technique that advocates for having multiple foremen in different, specialized roles. Traditionally, factories had just one foreman who would oversee operations. This foreman was the only direct contact for factory workers. Frederick Winslow Taylor, the famous engineer who revolutionized scientific management around the end of the 19th century, found a major flaw in this system. When he listed all of the qualities a successful foreman would need, he realized that no one person could possibly have every single one. Thus, the concept of functional foremanship was born.


What is meant by principles of management? State any three points of their importance.

Principles of management are general guidelines, which can be used for conduct in work places under certain situations. It also helps manager to take and implement thoughtful decisions.
Following are the main importance of the Principles of Management.
  • Improves Understanding.
  • Direction for Training of Managers.
  • Role of Management. Guide to Research in Management 
  • Improves Understanding - From the knowledge of principles managers get indication on how to manage an organization. The principles enable managers to decide what should be done to accomplish given tasks and to handle situations which may arise in management. These principles make managers more efficient.
  • Direction for Training of Managers - Principles of management provide understanding of management process what managers would do to accomplish what. Thus, these are helpful in identifying the areas of management in which existing & future managers should be trained.
  • Role of Management - Management principles makes the role of managers concrete. Therefore these principles act as ready reference to the managers to check whether their decisions are appropriate. Besides these principles define managerial activities in practical terms. They tell what a manager is expected to do in specific situation. 


Explain the following principles of Fayol with the help of one example for each:
(i) Discipline
(ii) Unity of command.

(i) Discipline
It is the sincerity and obedience towards organisational rules and regulations, as these are necessary for the smooth functioning of an organisation. According to Fayol, good superiors at all levels, fair agreements and judicious application of penalties are helpful in maintaining discipline.
It means obedience on the part of workers as well as managers.
Maintaining discipline to enhance efficiency.
(ii) Unity of Command : The principle of unity of command states that each participant in a formal organisation should receive orders and is answerable to only one superior.
If in any case, employee gets orders from two superiors at the same time, the principle of unity of command is violated and it will result in confusion and chaos. It can be avoided if there is proper coordination between different departments.
Supervisor will only report to production manager.


Explain "Fayol's Principles of 'equity' and 'order'" with examples.

Equity: Fayol advocated that there should be no discrimination against anyone on account of sex, religion, language, caste, belief, nationality etc. and emphasises kindness and justice in the behavior of the managers towards the workers to ensure loyalty and devotion.
For example, Now-a-days, in multinational corporations, equal opportunities are available to everyone.
Order: Fayol advocated that people and resources must be in suitable places at appropriate time for maximum efficiency i.e., there should be a place for everything and everyone in an organisation and that thing or person should be found in its allotted place. This will lead to increased productivity and efficiency.
For example, Raw material should be available at the place prescribed for it.


Explain the following principle of management:
(i) Cooperation, not individualism (ii) Order.

Cooperation, not individualism
Cooperation’ means acting jointly, or a union towards achieving the same result. Taylor emphasized that the workers and the management should act jointly and in unison to achieve the organizational objectives. Management as well as the employees are basically the two important component of the organization and without them the organization cannot work properly.
This principle states that the work should be done in cooperation and with mutual confidence. Employees and management should co-operate with each other. The best way to gain full cooperation from the workers is that the management should try to set the goals and standards in consultation with the workers so that they feel that the goal is set by them and as a result of a psychological factor they will co-operate sincerely and willingly to achieve the determined goal.
Orders - 
A place for everything/ everyone and every one in its place.


Explain the concept of 'functional foremanship' and 'mental revolution' in scientific management as enunciated by Taylor.

Functional foremanship It is an extension of the principles of division of work and specialisation. The term, functional foremanship means separation of planning from execution. Each worker is supervised by various specialists. For this, Taylor suggested that under the factory manager, there is a planning in charge and a production so as to increase efficiency.
Mental revolution Mental refers to mind and revolution refers to radical change, therefore, mental revolution refers to a change of mind. According to Taylor, a scientific management, in its essence, involves a complete mental revolution on the part of both sides to industry, viz workers and management.
No scheme of scientific management could be a success, unless and until both these groups fully cooperate with each other through developing and maintaining best friendly relations. This requires a mental revolution on the part of management and workers by giving up an attitude of hostility and enmity towards each other.


Name and explain the technique of scientific management which helps in establishing interchangeability of manufactured parts and products.

Standardization of work is the technique of scientific management, which helps in establishing interchangeability of manufactured parts and products.
It is the process of setting standards for every business activity, process, raw materials, time, machinery and methods to achieve efficiency. Standardization of product implies that the size, design, quality, shape, etc of the product should meet the requirements and tastes of consumers.
The objectives of standardization are:
(i) To maintain quality standards.
(ii) To set up performance standards for men and machines.
(iii) To provide interchangeability of manufactured parts and products.
(iv) To achieve target production in pre-determined time.


Name and explain the principles of management which requires judicious of penalties by the management.

Discipline: According to Fayol, discipline is obedience, application and outward mark of respect. It is the obedience to organisational rules and employment agreement which are necessary for the working of the organisation. According to Fayol, discipline requires good superiors at all levels, clear and fair agreements and judicious application of penalties.


Explain any two of the following Fayol's principles of management with examples:
(i) Unity of direction     (ii) Equity
(iii) Esprit de corps      (iv) Initiative

  • Unity of Direction
This management principle of the 14 principles of management is all about focus and unity. All employees deliver the same activities that can be linked to the same objectives. All activities must be carried out by one group that forms a team. These activities must be described in a plan of action. The manager is ultimately responsible for this plan and he monitors the progress of the defined and planned activities. Focus areas are the efforts made by the employees and coordination.
  •  Equity
The management principle of equity often occurs in the core values of an organization. According to Henri Fayol, employees must be treated kindly and equally. Employees must be in the right place in the organization to do things right. Managers should supervise and monitor this process and they should treat employees fairly and impartially.
  • Esprit de Corps
The management principle ‘esprit de corps’ of the 14 principles of management stands for striving for the involvement and unity of the employees. Managers are responsible for the development of morale in the workplace; individually and in the area of communication. Esprit de corps contributes to the development of the culture and creates an atmosphere of mutual trust and understanding.
  •  Initiative
Henri Fayol argued that with this management principle employees should be allowed to express new ideas. This encourages interest and involvement and creates added value for the company. Employee initiatives are a source of strength for the organization according to Henri Fayol. This encourages the employees to be involved and interested.


Explain 'Differential Piece Rate' and 'Functional Foremanship' as techniques of scientific management.

Differential piece rate Differential piece wage system is the strongest motivator for a worker to reach standard performance. It is a method of wage payment in which efficient and inefficient workers are paid at different rates. In this method, increase in efficiency is co-related with an increase in the wage rate. That is why, an efficient worker gets more wages whereas, an inefficient worker gets less. Workers are paid on the basis of number of units produced. If a worker produces more than a certain number of units (standard output), he gets higher wage per piece/units on his total output. If he produces below the standard number, he gets lower rate per piece. Because of different rates of wage for different sets of workers, this is known as differential piece rate plan.
Functional foreman ship
Functional foreman ship It is an extension of the principles of division of work and specialization. The term, functional foreman ship means separation of planning from execution. Each worker is supervised by various specialists. For this, Taylor suggested that under the factory manager, there is a planning in charge and a production


Explain the following principle of management:
(a) Discipline (b) Harmony, not discord.

Discipline - obedience to organisation rules and employment agreement.
Harmony not discord - There should be complete harmony and proper understanding between management and workers in achieving the organisation goals.


Explain how principles of management help in (a) meeting changing environment requirements and (b) making scientific decisions.

Scientific Decisions:
An effective decision must be based on facts, thoughtful and justifiable in terms of the required purpose. Decisions must be timely and realistic. Principles of management help the managers in taking decisions based on the objective assessment of the situation, free of any bias and prejudice. Thus, they approach various problems scientifically, leading to timely implementation of right decisions. 
Meeting Changing Environment Requirements:
As the principles can be modified, thus, they help the managers to meet the changing environment requirements. For example, at present the principle of division of work has been extended to the whole business.
Of late however, companies are specializing in their core competency and are outsourcing their non core business. For example, most of the big giants are now outsourcing some of their operations through ‘Business Process Outsourcing’ and ‘Knowledge Process Outsourcing’


Give the meaning of 'objectives' as a type of plain

An objective is a goal that a management desires to achieve. By stating the objective a management broadly defines what is to be done.


What is meant by 'Management of Work'?

Management of work refers to specifying clear and appropriate guidelines regarding how the goals and objectives of the organisation  are to be achieved.


What is determined by 'Time- Study'?

In time study, Taylor emphasized on setting a standard time limit for completing any particular job. This study basically aims at deciding the number of workers to be employed for the task, determining their wages,etc.


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 backbiting and wrong reporting about his colleagues to impress his boss. All the employees in the organisation knew about it. At the time of performance appraisal the performance of Nikita was judged better than Salman. Eyen then their boss, Mohammed Shari( 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 multi-national company. 
(ii) Identify the values which are being ignored quoting the lines from the above para.

(i) Multi-national company was not following the principle of equity as the manager promoted Salman on the grounds that a female will not be able to handle the complications of higher post.
Fayol in his principle clearly stated that the managers should be fair and. impartial while dealing with their subordinates. There should be no discrimination on the basis of caste, sex or religion. The principle of equity implies that similar treatment is assured to employees in similar positions.
(ii) (a) Gender equality, fair treatment, equity and impartiality are the values ignored in the lines ‘At the time of performance appraisal Nikita was judged better than Salman but the boss promoted Salman … higher post’
(b) Values such as, respect for all, impartiality, teamwork and cooperation are missing in the lines ‘Salman had the habit of backbiting and wrong reporting about his colleagues to impress his boss’.


Explain any four points of importance of management.

The following points highlight the importance of management.
1. Achievements of goals: The efforts of all the individuals must be organised and directed towards the common goals of the organisation. Managers of an organisation help in achieving the common goals by listing down what is to be done, how is to be done by whom it is to be done.
2. Increases efficiency: The managers of an organisation aim at increasing efficiency. An increase in efficiency implies minimising the costs and increasing the productivity through the optimum utilisation of resources. All possible methods are adopted to ensure cost effective discharge of allocated tasks.
3. Create dynamic organisation: Business today operate in a constantly changing business environment. It is generally observed that individuals are reluctant to changes, therefore it is managers who help overcome resistance and motivate people to adopt to the changes in external factors such as political, social, environmental and economical changes.
4. Development of society: Management must contribute to the developments of society by producing good quality products at fair prices, using honest selling practices, etc. This will help business enjoy a comparative advantage over the rival firms in a competitive environment.


'Management is the process of getting things done'. State the meaning of the term 'process' used in this statement.

Management is the process of getting things done, where process is related to the primary functions or activities that management performs to get things done with the aim achieving the goals effectively and efficiently.


With the help of a diagram explain 'Functional Foremanship' as a technique of scientific management.

Functional foremanship is a factory management technique that advocates for having multiple foremen in different, specialized roles. Traditionally, factories had just one foreman who would oversee operations. This foreman was the only direct contact for factory workers. Frederick  Winslow Taylor, the famous engineer who revolutionized scientific management around the end of the 19th century, found a major flaw in this system. When he listed all of the qualities a successful foreman would need, he realized that no one person could possibly have every single one. Thus, the concept of functional foremanship was born.
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Which technique of Taylor acts as the strongest motivator for a worker to reach standard performance?

Differential piece wage system- Taylor’s Differential Piece-Rate System was introduced by F.W. Taylor, who believed that the workers should be paid on the basis of their degree of efficiencies. Under this method, with the help of Time and Motion Study, the standard time for the completion of a job is fixed on the basis of which the performance of the workers is evaluated.


'Providing the social and welfare of employees' is one of the specialised activities performed by Human Resource Management. Mention any two other specialised activities of Human Resource Management.

The two other activities performed by human resource management other than 'providing for social security and social welfare of the employees' are given below.
a. Providing the required training and development to the employees in order to improve their efficiency.
b. Recruiting and searching for a qualified personnel


Namita and Aslam completed their MBA and started working in a multi-national company at the same level. Both are working hard and are happy with their employer. Aslam had the habit of backbiting and wrong reporting about his colleagues to impress his boss. All the employees in the organisation knew about it. At the time of performance appraisal the performance of Namita was judged better than Aslam. Even then their boss, Saleem Khan decided to promote Aslam stating that being a female Namita 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 quoting the lints from the above para.

(i) Multi-national company was not following the principle of equity as the manager promoted Salman on the grounds that a female will not be able to handle the complications of higher post.
Fayol in his principle clearly stated that the managers should be fair and. impartial while dealing with their subordinates. There should be no discrimination on the basis of caste, sex or religion. The principle of equity implies that similar treatment is assured to employees in similar positions.
(ii) (a) Gender equality, fair treatment, equity and impartiality are the values ignored in the lines ‘At the time of performance appraisal Namita was judged better than Aslam but the boss promoted Aslam higher post’
(b) Values such as, respect for all, impartiality, teamwork and cooperation are missing in the lines Aslam had the habit of backbiting and wrong reporting about his colleagues to impress his boss


Explain any four characteristics of 'principle of management.'

The characteristics of 'principles of management are as follows: 
i. Universally applicable. Management principles can be applied anywhere and everywhere by all types of organisations irrespective of their size, nature and region. However, the degree of their applicability would definitely be governed by such factors as the nature of business, scale of operations etc. 
ii. Guidelines: Management principles act as guidelines and are considered to be the general premises for decision making. However, they do not provide straitjacket solutions to problems as real life business situations are cumbersome and dynamic, they call for specialised actions. 
iii. Formed by experimentation Management principles have been developed over years of research and experimentation and are technical. They pertain to different working situations and can be modified by the manager as per the situations and the requirements. 
iv. Flexible. Management principles are not rigid. They are flexible enough to be used and molded by the manager as per the need of the hour. This makes application of management principles in diverse business situations.


What makes principles of management flexible?

Principles of management are flexible, which means that they are not rigid, and can be modified by the manager as per the situation. The application of principles of management is contingent as it depends upon the prevailing situation at a particular point in time.


Name the principle that is an extension of the harmony, not discord.

Cooperation, not individualism is the extension of the principle 'harmony, not discord'. Cooperation among the managers and the workers is stressed in this principle, rather than their interests. It ensures that organizational goals are given priority over personal goals.


Explain the principle of ‘Scalar Chain’.

An organization consists of superiors and subordinates. The formal lines of authority from highest to lowest ranks are known as the scalar chain. According to Fayol, organizations should have a chain of authority and communication that runs from top to bottom and should be followed by managers and subordinates.


Attempt the following.
What are the contents of share certificate?

Definition: - Section 84 of the companies Act defines share certificate as 'A certificate, under the common seal of the company, specifying only the shares held by any member, shall be a prima facie evidence of the title of the member of such shares'. 
Contents of Share Certificate-
1. Name and Address of the registered office of the company. 
2.Name(s) of the Shareholder(s). 
3. Serial number of share certificate. 
4.Number of Share(s) held. 
5.Number and class of shares. (i.e. whether Preference or equity shares) 
6.Nominal value and amount paid on each share. 
7.Distinctive Number(s) of shares. 
8.Date of issue of Certificate. 
9.Signature of two directors and one authorized signatory. 
10. Seal of the company against the affixed revenue stamp. 
11.The face value of the shares. 
12. Whether the face value is fully paid or partly paid. 
The share certificate is required for the transfer and transmission shares. It is a registered document and not a bearer document. It can be transferred only by following a certain transfer procedure. 


Define scientific management.

Scientific management implies the application of science to the job management of an industrial concern. It aims at the replacement of traditional techniques by scientific techniques. Scientific management is a thoughtful, organized human approach to the job of management as contrasted with hit or miss, rule of thumb.


State any two causes of fatigue that may create hindrance in the employees performance.

The two causes of fatigue that may create hindrance in the employee's performance are long working hours and uncordial relations with the boss.


Explain the principle of Subordination of individual interest to common good.

The interests of an organization should take priority over the interests of any one individual employee according to Fayol. Every worker has some individual interest in working in a company.


Fill in the blanks with appropriate words in the following statements.
Business enterprise require two types of finance, they are __________ and ___________.

Business enterprise requires two types of finance which are:-
1. Long-term finance:- These are the finance which are contributed by the owners and long term creditors of the enterprise. Finance is also known as capital finance. 
2. Short-term finance:- These are the finance which are generated from the outsiders to meet the day to day affairs of the business.


What factors are to be kept in mind, while taking a decision?

Decision making is a stage of management that is regarded as the cognitive process of selecting a course of action among several alternative possibilities.
The factors kept in mind while decision making are:- 
1. Planning Premises which refers to the forecasting of the future course of action that helps in decision making. 
2. Organisational environment.
3. Timing of decisions highly influences the decision.
4. Participation of employees in the decision making makes its implementation easy. 
5. Communication of such decisions to the employees. 


Sanket, after completing his entrepreneurship course from U.SA. returned to India and started a coffee shop 'Fioma Coffee' in a famous mall in Mumbai. The speciality of the coffee shop was the special aroma of coffee and wide variety of flavours to choose from. Somehow, the business was neither profitable nor popular, Sanket was keen to find out the reason. He appointed Riya, an MBA from a reputed management institute as a manager to find out the causes of the business not doing well. 
Riya, took feedback from the clients and found out that though they loved the special unique aroma of coffee but were not happy with the long waiting time being taken to process the order. She analysed and found out that there were many unnecessary obstructions which could be eliminated. She fixed a standard time for processing the order. 
She also realised that there were many flavours whose demand was not enough. So, she also decided to discontinue the sale of such flavours. As a result, with in a short period Riya was able to attract the customers. 
Identify and explain any two techniques of scientific management used by Riya to solve the problem. 

The techniques of scientific management used by Riya to solve the problem are:
(a) Standardisation of work : Standardisation of work implies setting milestones or benchmarks for any work or activity. It aims at establishing standards of excellence against which actual performance can be measured. Standardisation can be set in terms of process, raw material, product or time. Standards are to be followed by the managers in the production process, and standardisation has the objective of ensuring that the final product is of fixed size, characteristic and quality. Various other techniques given by Taylor, such as method study, fatigue study and time study, are based on the concept of standardisation. 

(b) Simplification of work : Simplification of work involves eliminating unnecessary diversifications in the productin terms of variety, size and dimension. It aims at fuller utilisation of the resources, reducing the inventories and increasing the turnover. It also helps in reducing the costs of labour and machines. Along with this, simplification aims at removing the unnecessary steps involved in a process to achieve efficiency. 


Give the meaning of 'Method' as a type of plan.

Method gives prescribed ways or manner in which the task has to be performed considering the objectives of the business plan. Method plan is the pathway or the 'how to' in any business plan. Methods used to perform a business plan is relative to the objectives set by the organization and activities to be enacted to achive the objective of the business plan.


Saurabh decided to start a chocolates manufacturing business. He set the target of earning $$10\%$$ profit on sales in the first year. As a good businessman, he was concerned about the future of the business, which was uncertain. He gathered information that the demand for chocolates is increasing day-by-day. He used this information as the base for future planning and shared it with his team. On the basis of the gathered information, he scheduled a meeting in the following week to find innovation ways to achieve the objectives.
List the first two steps, which have been followed by Saurabh that are related to the process of one of the functions of management.

The first two steps, which have been followed by Saurabh that are related to the process of one of the functions of management are:
(a) Setting objectives;
(b) Developing premises.


Karan Nath took over 'D'north Motor Company' from his ailing father three months ago. In the past the company was not performing well. Karan was determined to improve the company's performance. He observed that the methods of production as well as selection of employees in the company were not scientific.
He believed that there was only one best method to maximise efficiency. He also felt that once the method is developed, the workers of the company should be trained to learn that 'best method'.
He asked the Production Manager to develop the best method and carry out the necessary training. The Production Manager developed this method using several parameters right from deciding the sequence of operations, place for men, machines and raw materials till the delivery of the product to the customers. This method was implemented throughout the organisation. It helped in increasing the output, improving the quality and reducing the cost and wastage.
Identify and explain the principles and the technique of scientific management followed by the Production Manager in the given case.

Principles of scientific management followed by production Manager in above case are: 
(a) Science not Rule of Thumb: It means a use of a logical and scientific method for taking decisions instead of instinct. According to Taylor, for every work, there is only one method of doing it, which can be ascertained by logic and not with the help of hit and trial method. This helps in saving time and increasing efficiency to a large extent.

(b) Development of each and every person to his or her greatest efficiency and prosperity: 
(i) This principle stands for the development of workers through training in order to learn the best method developed through the use of the scientific approach.  (ii) The work assigned to each person should suit his physical mental and intellectual capabilities. Efficient workers produce more to earn more. 
(iii)This ultimately helps to attain efficiency and prosperity for both organization and workers. 

The technique of scientific management used is: 
(a) Method study: Taylor advocated that there is one best method or way of performing the job which keeps production cost minimum and makes efficient use of resources. To determine the best way there are certain parameters right from procurement of raw material till the final product is delivered. The objective of method study is to minimise the cost of production and maximise the quality and customer satisfaction. 



State two positive aspects of the communication discussed, which Sandhya is using as an intelligent manager.

Communication acts as basis of coordination and cooperation, among departments regarding the activities in the organization. the informal communication leads to less communication gap within the workers to work more efficiently.


State the importance/significance of the principles of management.

The principles of management are the pre-determined solutions for the problems that occur repeatedly. Their significance is as follows:
1. Insight to managers: They provide timely guidance to the managers thereby avoiding wastage of resources. Also, it is a less expensive way of solving problems.
2. Effective utilization of resources: These principles help the managers to put the resources to the best possible use and avoid wastages. For example, the principle of Unity of Command states that there should be only one boss of an employee at one time. If an employee has to follow the instructions of more than one boss he will not be able to focus on work properly and thus he will not be efficient.
3. Scientific decisions: These principles help the managers to take scientific or balanced decisions. In their absence, the managers may have to follow trial and error method.
4. Social responsibility: They guide the managers to produce good quality products at reasonable prices. It is the social responsibility of the business to serve the public better.
5. Training, education and research: These encourage the managers and researchers to innovate and improve their products and upgrade their knowledge.


Write only a word or a phrase or a phrase or a term which can substitute the following statement.
Father of modern management.

Peter F. Drucker is regarded as the Father of modern management. Some of the key ideas in his writings are decentralization and simplification, outsourcing, management by objectives, respect for workers. etc.


State with reason, whether the following statement is True or False:
Principles of management improve the efficiency of employees.

The Principles of Management are the essential, underlying factors that form the foundations of successful management.
Unity of Command This principle states that each subordinate should receive orders and be accountable to one and only one superior.principles of management. 
Management is essential to any organization that wishes to be efficient and achieve its aims.It has been said that management has four basic functions planning, organizing, leading and controlling.


Explain the following Principles of management, as advocated by Henry Fayol:
Order

Henri Fayol specialization promotes efficiency of the workforce and increases productivity. In addition, the specialization of the workforce increases their accuracy and speed. This management principle of the 14 principles of management is applicable to both technical and managerial activities.
Fayol defines the order principle as the systematic, orderly and proper arrangement of people, places and things.
In today's world, Fayol's order principle is still highly regarded. In the majority of organizations, human resource departments work to find the employees who are the best fit for a specific job..


Financial management is essential for all types of organisations.

This statement is 'True' because of the following reasons : 
(i)  Financial management deals with procurement of funds and their effective utilisation i.e.,
(ii) There are two basic aspects of financial management.
(a) Raising of funds (b) effective utilisation of funds.
(iii) It deals with planning, organizing, directing, co-ordinating and controlling financial activities.
(iv) It is called the Resource management as the business activities involve use of finance.
(v) Also there are profit making organisations and non profit making organisations.
(vi) So the scarce resources of savings have to be used in developmental activities in all different type of organisations.
(vii) Thus the funds available should be used properly in business activities.
(viii) So financial management is essential for all types of organisations.


Answer briefly the following question.
List any two conditions where time-rate system of wage payment is not suitable.

Two conditions where time-rate system of wage payment is not suitable is: 
1. Where the wages are given on per unit of output produced.
2. Where wages are given according to the quality of the goods and services produced by the workers. 


Write short note on the following:
Any 'five' principles of management.

The Principles of Management are the essential, underlying factors that form the foundations of successful management. Unity of Command - This principle states that each subordinate should receive orders and be accountable to one and only one superior. Good managers discover how to master five basic functions: planning, organizing, staffing, leading, and controlling. Planning: This step involves mapping out exactly how to achieve a particular goal. Say, for example, that the organization's goal is to improve company sales.


Write a word or a phrase or term which can substitute the following statement:
One of the functions of the management is considered as a base for all functions.

There are four functions of management that span across all industries. They include: planning, organizing, leading, and controlling. You should think about the four functions as a process, where each step builds on the others.
Principles are the rules and guidelines, while elements are the functions of management. He has grouped the elements into five managerial-functions planning, organizing, commanding, coordinating, and controlling. His classification is widely accepted.


What is GANG-PLANK?

GANG-PLANK is the term used in concern with the scalar chain. 
Scalar chain refers to the chain of superiors ranging from the ultimate authority to the lowest level in the organisation. It should be short-circuited and not carried to the extent it proves detrimental to the organization, this concept is known as Gang-Plank. In this figure if $$T$$ wants to communicate with $$Y$$, usually message will move from $$T$$ to $$O$$ via $$S$$, $$R$$, $$Q$$ and $$P$$ and from $$O$$ it will come down to $$Y$$ through $$U$$, $$V$$, $$W$$ and $$X$$. But if it is essential to communicate immediately a Gang-Plank (dotted line) may be created between $$T$$ and $$Y$$ without weakening the chain of command.

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State with reasons, whether the following statement is True or False:
Management should avoid workers' participation while making decisions.

Management should avoid worker's participation while making decisions.

This statement is False.

i. Management should not avoid worker's participation while making decisions.

ii. Worker's participation in decision making allows the organisation to take the right decision at right time.

iii. It also improves the loyalty of the workers towards the firm. If we built the trust among the workers towards the firm then it will be shown through their productivity.

iv. It also provides the higher level authority to improve and develop their talent and skills.

v. Ultimately, the worker participation in management will lead to a better relationship between labour and management. 


How do the technique of time study and motion study help in improving the efficiency level?

Time study technique determines the standard time taken by a workman to perform a given task . The following are the ways in which time study helps in improving the efficiency levels:
1. It helps in decreasing the unnecessary actions which are not productive .
2, It helps in completion of target in less time by avoiding unnecessary actions . 


At what level of management?
(a) Principles of management are planned.
(b) Principles of management are implemented. 

(a) The Top Management
It consists of board of directors, chief executive or managing director. The top management is the ultimate source of authority and it manages goals and policies for an enterprise. It devotes more time on planning and coordinating functions.
(b) Middle Level Management
The branch managers and departmental managers constitute middle level. They are responsible to the top management for the functioning of their department. They devote more time to organizational and directional functions. In small organization, there is only one layer of middle level of management but in big enterprises, there may be senior and  junior middle level management.


Taylor's technique of management are universally applicable. Do you agree? Give four reasons to support your answer.

Yes, I agree with this statement because Taylor's techniques are developed through scientific approach and not by rule of thumb.
Any principle developed scientifically is universally applicable because there are not affected by personal feelings, intuitions of manager, these are based on pure scientific approach. The technique which facilitate the universal applicability of Taylor's principle are:
(a) Time study          (b) Motion study
(c) Method study      (d) Standardisation
(e) Fatigue study       (f) Mental revolution
But some techniques of Taylor are not universally applicable under some situations. These are:
(i) Functional foremanship. This technique in not applicable in the organisation adopting principle of unity of comand.
(ii) Differential piece rate system. This technique is not possible in organisation following principle of equity.
(iii) Simplification. This technique is not suitable for organisation having objective of diversification and expansion of line of products and varieties.


Explain the following principles of management by Fayol:
(a) Unity of command
(b) order.

Henri Fayol was a French Management Theorist who developed general theory of business administration that is called Fayolism. He proposed five primary functions of management and fourteen principles of management. Unity of command and order falls under those fourteen principles of management.

Unity of command: 
It means getting orders from a supervisor or on behalf of a supervisor. Accordingly, there should be only one supervisor for a subordinate. The link between the supervisor and the subordinate should be direct. If two or more supervisors are there for a subordinate there might be conflict of interest, uneasiness, confusion as well as dilemma. Such things are a direct influence to the overall efficiency, productivity and ultimate goal of an organisation.

Order:
It means the arrangement or disposition of people or things in relation to each other according to a particular sequence, pattern, or method. Now if we look at it from the perspective of a company, a company promotes order so that there is a smooth flow of operations. His principle talks about two kinds of orders: material and social. Material order means the right arrangement for the physical resources of a company; a proper place for everything so that there is no confusion while finding the material hence there will be less wastage of time and efforts. Social order means that there should be a proper arrangement for the employees meaning a seat or a cabin..



How are management principle derived?

  • On the basis of observation:
    Managers observe and analyse the day to day happenings in a workplace. With that they come to know what problems are being faced by the company as well as what measures are needed to be taken in order to overcome such obstacles. For example, it was observed that if experts are appointed as supervisors to different workers, then it yielded better results than a supervisor with less knowledge in his line of work. This was how specialization evolved. 
  • On the basis of experiments:
    One organisation's structure might be different from the other. So, through different experiments the suitability of the structure can be understood. Suppose, the degree of  'centralization' can be different from one company to other according to the size and volume of a company. What might work for a smaller company, might not work for a bigger one. This can only be understood by experimenting with the existing structure.


Give any two features of management principles.

The main features of principle of management are briefly discussed below:
1. Universal application: The principles of management are universal in nature that means they can be applied to all kinds of organisations irrespective of their size and nature.
2. General guidelines: Management principles are not static or absolute statements. These are not applied blindly in all the situations. A principle of management gives guidelines to solve the problems not ready made solutions.


Name and explain any two principles or technique of management which fulfill social and personal objectives of management? 

1. Principle of remuneration. 
2. Principle of equity. 
3. Development of workers to their greater efficiency.
4. Standardisation technique. 
5. Harmony not discord.


Name and explain scientific techniques of Taylor which violates personal objective of management? 

(i) Functional foremanship (too many heads on one worker).
(ii) Differential piece wage system (no guarantee for minimum wage).


$$90%$$ staff 'Work Well Ltd.' consists of male employee. The female employees are employed for very basic jobs like receptionists etc. The management is of opinion that female employees cannot contribute at par with male employees. They pay much lesser salaries to female staff despite the fact that they work for same number of hours.
(a) Name the principle of management that is being violated here.
(b) State the values ignored by management of Work Well Ltd.

(a) Equity: The management principle of equity often occurs in the core values of an organization. According to Henri Fayol, employees must be treated kindly and equally. Employees must be in the right place in the organization to do things right. Managers should supervise and monitor this process and they should treat employees fairly and impartially.
Remuneration
Motivation and productivity are close to one another as far as the smooth running of an organization is concerned. This management principle of the 14 principles of management argues that the remuneration should be sufficient to keep employees motivated and productive. There are two types of remuneration namely non-monetary (a compliment, more responsibilities, credits) and monetary (compensation, bonus or other financial compensation). Ultimately, it is about rewarding the efforts that have been made.

(b) Women empowerment, equality.


Nutun Tiffin Box service was started in Mumbai by Mumbai Dabbawals. The Dabbawals who are the soul of entire Mumbai aim to provide prompt and efficient service providing tasty homemade tiffin to all office goers at right time and place. The service is uninterrupted even on the days of bad weather, political unrest and social disturbances. Recently they have started online booking system through their website 'mydabbawala.com'. Owing to their tremendous popularity amongst the happy and satisfied customers and members, the dabbawalas were invented of 25-30 people along with a group leader. Each group terms up with other groups in order to deliver the tiffin on time. They are not transferred on frequent basis as they have to remember the address of their customers. They follow certain rules while doing trade- No alcohol during working hours; No leave without permission; Wearing of white cap & carrying ID cards during business hours.
Recently on the suggestion of a few self motivated fellow men, the dabbawals thought out and excuted a plan of providing food left in tiffin by customers to slum children. They have instructed their customers to palce red sticker in if food is left in the tiffin, to be fed to poor children later.
(a) State any one principle of management given by Fayol & one characteristic of management mentioned in the above case.
(b) Give any two values which the Dabbawals want to communicated to the society.

(a) Principles of management(any one)
- Stability of Personnel
- Initiative
- Discipline
- Esprit de corps
Characteristic of management(any one)
-Goal oriented Dynamic
- Intangible Force Multi Dimensional
- Group activity

(b) Values that have been communicated by the Dabbawalas(any two)
1. Fulfilling social responsibility;
2. Empathy towards disadvantage children
3. Team work


Production manager of Beta Ltd. 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 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, he learnt that the workers worked non-stop which 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.
(a) State the principle of management followed here? Explain.
(b) Which technique of scientific management is indicated in above para? Give reason.

Division of Work:
In practice, employees are specialized in different areas and they have different skills. Different levels of expertise can be distinguished within the knowledge areas (from generalist to specialist). Personal and professional developments support this. According to Henri Fayol specialization promotes efficiency of the workforce and increases productivity. In addition, the specialization of the workforce increases their accuracy and speed. This management principle of the 14 principles of management is applicable to both technical and managerial activities.

Fatigue Study:
It refers to determine the duration and frequency of rest intervals to complete a particular job. The rest refreshes the workers. They work again with their full capacity.
The main objective of this study is to maintain the efficiency level of workers. There may be so many causes of fatigue, such as long working hours, poor working conditions, unsuitable work, unhappy relations with the boss, etc.


In one of the principles of scientific management, Taylor emphasises that there should be equal division of work and responsibility between workers and management should work almost side by side with workers helping them:
Identify principle.
State any other two scientific principle.

(1) Harmony, Not Discord:
Taylor emphasized that there should be complete harmony between the workers and the management since if there is any conflict between the two, it will not be beneficial either for the workers or the management.
Both the management and the workers should realize the importance of each other. In order to achieve this state, Taylor suggested complete mental revolution on the part of both management and workers.
(2) Science, Not Rule of Thumb
(3) Cooperation, Not Individualism
       


Apaar Foundation is a Non Governmental Organization (NGO) working to improve the lives of children with medical needs, the homeless and victims of natural disasters. Apart from donations in cash, they collect dry ration, old clothes, shoes, toys, books and medicines from doctors. At Apaar Foundation's office in Bhopal the material collected is segregated, classified and put in shelves and boxes that are labelled systematically. There is a specific place for each of these items and volunteers put everything at their respective places. The volunteer work is divided into specific jobs like fund raising, field visits, social media updates and so on. Each volunteer is part of a particular team, depending on their competency and training. Each volunteer becomes specialized in their respective field, leading to efficient utilization of human effort.
(i) Identify and explain two principle of management adopted by Apaar Foundation.
(ii) State two values that Apaar Foundation is displaying and promoting in society through their work.

(i) Principle of management adopted by Apaar Foundation are:
(a) Order:
The principle of Order states that people and material must be in suitable places at appropriate time for maximum efficiency i.e. there should be a place for everything and everyone in a organisation and that person or thing should be found in its allotted place. This will lead to increased productivity and efficiency.
(b) Division of Work:
The principle of Division of work states that work divided into small tasks/jobs. A trained specialist who is competent is required to perform each job. Thus, division of work leads to specialization.

(ii) Values that Apaar Foundation is displaying and promoting in society through their work are:(Any two)
(a) Concern for the society.
(b) Optimum utilization of resources.
(c) Sensitivity towards the environment.


Alpha Ltd. was engaged in business of garment manufacturing and selling its products under a popular brand. The demand for their product was increasing. In order to keep the market share in short run, the company directed its existing workforce to work overtime but this resulted in many problems. Due to increase pressure of work the efficiency of workers declined. Sometimes workers worked under more than one superior. The departments which were producing one product were asked to produce more than one type of products. This resulted in lot of overlapping and wastage. The workers were becoming indisciplined. This spirit of team was also  reducing. Workers were feeling cheated and their morale was declining. The quality of garments started declining and market share decreased. Based on this case answer the following questions:
(a) Identify which principles of Henry Fayol were violated in above case.
(b) Explain these principle in brief.
(c) What steps should be taken by company to restore its reputation?

(a) The company violated the following principles: 
(i) Division of work
 (ii) Unity of command
 (iii) Unity of direction
 (iv) Discipline
 (v) Subordination of individual interest to general interest
 (vi) Order
 (vii) Initiative 
(viii) Remuneration

(b) (i) Division of Work As per the casework is not divided among the workers as per their specialisation. As specialisation is the most efficient way to use human efforts and produces more and better work. 
(ii) Unity of Command In the case subordinates had to work for more than one superior. This results in declining efficiency. As per Fayol’s principle of unity of command there should be one boss and if it is violated it results in authority is undetermined, discipline is in jeopardy, order distributed and stability threatened. Same we are observing in the above case. 
(iii) Unity of Direction The units of an organisation should be moving towards the same objective. Each group must be having the same objective must have one head one plan. But in case first, the producers are working on one product then moved to two or more group. Thus, this principle is also violated. (iv) Discipline In the case, there is a lack of formalised control as the workers are working beyond there abilities. There is no rules and regulations as well as lack of employment agreement. 
(v) Subordination of Individual Interest to General Interest Every individual is working better only when the organisation is giving priority to their general interest. In the case, a company is only focusing on its objective, not on employees.
 (vi) Order People and materials must be in suitable places at the appropriate time for maximum efficiency. But in case they are not following the order of anything.
 (vii) Initiative It implies that workers should be self-motivated, suggestions should be taken from the employees. It results in substantial cost and time reduction but here they are taking no feedbacks, no suggestions. 
(viii) Remuneration The workers should get the fair wages but in caseworkers are performing day and night but they are not getting a fair amount for the same. This results that they are feeling cheated.

(c) Following steps should be taken by the company to retain its past glory (i) Work is divided into small tasks and distributed among the employees as per their specialisation. (ii) There should be one boss. (iii) Functions should be performed under one head or one plan. (iv) Formalised control should be maintained. (v) Proper remuneration and impressive incentives should be given. (vi) Hierarchical communication pattern is to be followed. (vi) Suggestions and feedback should be taken from the employees. (viii) Maintain high morale among employees.


Specify the consequences of violating principle of remuneration.

Violating the principle of remuneration will lead to decrease in the efficiency of employees. The employees will get demotivated and conflict might arise between management and employees. Employees will be disinterested in the work which will result in a slower production process. This in turn will lead to a loss for the company and the company would not be able to meet the organisational objectives.


Which concept of management is referred in the principle of Scalar chain? Explain.

Management by communication- Communications management is the systematic planning, implementing, monitoring, and revision of all the channels of communication within an organization, and between organizations; it also includes the organization and dissemination of new communication directives connected with an organization, network.


Which level of management was focused by Fayol and Taylor? Explain functions of that level of management.

The work of Taylor & Fayol was, of course, especially complementary. They both realized that problem of personnel & its management at all levels is the key to individual success. Both applied scientific method to this problem that Taylor worked primarily from operative level, from bottom to upward, while Fayol concentrated on managing director and work downwards, was merely a reflection of their very different careers”. 
Taylor looked at management from supervisory viewpoint & tried to improve efficiency at operating level. He moved upwards while formulating theory. On the other hand, Fayol analyzed management from level of top management downward. Thus, Fayol could afford a broader vision than Taylor.


What does scientific management mean?

According to Taylor, “Scientific Management is an art of knowing exactly what you want your men to do and seeing that they do it in the best and cheapest way”. In Taylors view, if a work is analysed scientifically it will be possible to find one best way to do it."
Hence scientific management is a thoughtful, organized, dual approach towards the job of management against hit or miss or Rule of Thumb.


Explain the principle of remuneration.

Every individual joins the organization with the main aim of earning his bread and butter. The wages or salary which he earns for his work helps him to fulfill the basic and other needs of life. The wages or salary must be in equality with the work done by him so that he gets satisfied and can perform better.
Fayol  is of the view that each employee must get fair remuneration so that the employee as well as the owner gets the same amount of satisfaction. The remuneration system must be such which provides for the adequate remuneration to the employees, motivates the employee to perform better, and may ensure safety & security, raise standard of living of the employees.


What do you understand by principles of management?

A principle refers to a fundamental truth. It establishes cause and effect relationship between two or more variables under given situation. They serve as a guide to thought & actions. Therefore, management principles are the statements of fundamental truth based on logic which provides guidelines for managerial decision making and actions.


State any two characteristics of the principles of management

The two characteristics of the principles of management are briefly mentioned below:
1. Universal Applicability : The principles of management are applicable to all types of organisations and at all the levels of management .
2. General Guidelines : management principles act only as guidelines for decision making and actions. They don't provide direct or ready-made solutions.


How does the principle of scalar chain help in solving the problems faster? 

Hierarchy presents itself in any given organization. This varies from senior management (executive board) to the lowest levels in the organization. Henri Fayol ’s “hierarchy” management principle states that there should be a clear line in the area of authority (from top to bottom and all managers at all levels). This can be seen as a type of management structure. Each employee can contact a manager or a superior in an emergency situation without challenging the hierarchy. Especially, when it concerns reports about calamities to the immediate managers/superiors.


What is the main objective of 'Time study? 

Time Study
It is a technique which enables the manager to ascertain standard time taken for performing a specified job.
Every job or every part of it is studied in detail.
This technique is based on the study of an average worker having reasonable skill and ability.
Average worker is selected and assigned the job and then with the help of a stop watch, time is ascertained for performing that particular job.


State how the management principles are flexible. 

Principles of Management are Flexible
  • Management principles are dynamic guidelines and not static rules.
  • There is sufficient room for managerial discretion i.e. they can be modified as per the requirements of the situation.
  • Modification & improvement is a continuous phenomenon in case of principles of management.


What is.meant by 'Principles of Management?

A principle refers to a fundamental truth. It establishes cause and effect relationship between two or more variables under given situation. They serve as a guide to thought & actions. Therefore, management principles are the statements of fundamental truth based on logic which provides guidelines for managerial decision making and actions. 


Explain any five characteristics which reflect the nature of Principles of Management.

1.Principles of Management are Universal
  • Management principles are applicable to all kinds of organizations - business & non business.
They are applicable to all levels of management.

2.Principles of Management are Flexible
  • Management principles are dynamic guidelines and not static rules.
  • There is sufficient room for managerial discretion i.e. they can be modified as per the requirements of the situation.

3.Principles of Management have a Cause & Effect Relationship
  • Principles of management indicate cause and effect relationship between related variables.
  • They indicate what will be the consequence or result of certain actions. Therefore, if one is known, the other can be traced.

4.Principles of Management - Aims at Influencing Human Behavior
  • Human behavior is complex and unpredictable.
  • Management principles are directed towards regulating human behavior so that people can give their best to the organization.

5.Principles of Management are of Equal Importance
  • All management principles are equally important.
  • No particular principle has greater importance than the other.They are all required together for the achievement of organizational goals.


Answer the following question in a sentence or a word.
Who is called the father of General management?

Henry fayol is regarded as the 'Father of General Management' after his book named 'General and Industrial Management'. He is also regarded as one of the early fathers of human relations movement.


The principles of management are different from those of pure sciences'. State any one difference. 

Management Principles vs. Pure Science Principles:
1. Management Principles are very flexible whereas pure science principles are rigid.

2. Management Principles are applied with creativity as these principles influence the behaviour of human being whereas scientific principles are applied in absolute or in static manner.


Why it is said that management principles are universal in application? 

Principles of Management are Universal
  • Management principles are applicable to all kinds of organizations - business & non business.
  • They are applicable to all levels of management.
  • Every organization must make best possible use by the use of management principles.
  • Therefore, they are universal or all pervasive.


Answer the following question in $$15$$ to $$20$$ sentences.
Briefly explain the principles of scientific management of F.W. Taylor.

In 1909, Taylor published "The Principles of Scientific Management." In this, he proposed that by optimizing and simplifying jobs, productivity would increase. He also advanced the idea that workers and managers needed to cooperate with one another. This was very different from the way work was typically done in businesses beforehand. A factory manager at that time had very little contact with the workers, and he left them on their own to produce the necessary product. There was no standardization, and a worker's main motivation was often continued employment, so there was no incentive to work as quickly or as efficiently as possible. 

Four Principles of Scientific Management

Taylor's four principles are as follows:

  1. Replace working by "rule of thumb," or simple habit and common sense, and instead use the scientific method to study work and determine the most efficient way to perform specific tasks.
  2. Rather than simply assign workers to just any job, match workers to their jobs based on capability and motivation, and train them to work at maximum efficiency.
  3. Monitor worker performance, and provide instructions and supervision to ensure that they're using the most efficient ways of working.
  4. Allocate the work between managers and workers so that the managers spend their time planning and training, allowing the workers to perform their tasks efficiently.


Answer the following question in $$2$$ or $$3$$ sentences.
Give the meaning of Gang Plank.

Definition of gangplank. : a movable bridge used in boarding or leaving a ship at a pier.


Answer the following question in $$2$$ or $$3$$ sentences.
What is meant by Espirit-de corps?

Esprit de corps 
Esprit de corps (not esprit du corps) is French for spirit of body. Body here refers not to the human body but rather to a body of multiple people—for example, a military unit, a business, or a sports team. To have esprit de corps is to have high regard and pride for the body to which one belongs.


Explain the following principle of management: 
(a) Science, not rule- of- thumb
(b) Discipline 

The following are the principles of scientific management. 
(a) Science, not a rule of thumb: Before Taylor developed the Principles of Management, Rule of Thumb was a widely used concept. Under rule of thumb, each manger handled a situation or problem as and when they arose using the trial and error method. It was an easily applicable process but was a very vague and inaccurate technique of determining solutions to the problems. Taylor fostered the introduction Scientific methods. He believed that for every work there is only one best method of doing it. He wanted managers to take decisions on the basis of logic and science rather than rule of thumb. He proposed that various traditional methods used by the managers should be studied and the best method/solution among them should be adopted and followed by all the managers in the organisation. With such scientific management he was able to increase efficiency to a large extent. 

(b) Discipline: According to this principle of Fayol, an organisation must follow and ensure the conformity of a certain set of rules, regulations and policies. Here, it is necessary that the management has pre-defined set of rules which are in conformity with the employees. The principle of discipline is often said as a double-edged tool as it not only requires setting of rules and regulations but also ensures that these rules and policies are in conformation with the workers. Discipline is an important tool in management to achieve the organisational targets on time as working in discipline promotes working efficiency and avoids confusion and delays in work. 


What is meant by 'Time-Study'?

Time Study
  • It is a technique which enables the manager to ascertain standard time taken for performing a specified job.
  • Every job or every part of it is studied in detail.
  • This technique is based on the study of an average worker having reasonable skill and ability.
  • Average worker is selected and assigned the job and then with the help of a stop watch, time is ascertained for performing that particular job.


State the main objective of time study.

The main objective of time study is to determine by direct observation the quantum of human work in a specified task and hence, to establish the standard time within which an average worker working at a normal pace should complete the task using a specified method.


Answer the following question in $$2$$ or $$3$$ sentences.
What is gang plank?

The gangplank is a short bridge or platform that can be placed between the side of a ship or boat and the shore, so that people can get on or off.


Answer the following question in $$15$$ to $$20$$ sentences.
Explain any five features of principles of management.

Features of Principles of Management
1. Principles of Management are Universal
Management principles are applicable to all kinds of organizations - business & non business.
They are applicable to all levels of management.
Every organization must make best possible use by the use of management principles.
Therefore, they are universal or all pervasive.

2. Principles of Management are Flexible
Management principles are dynamic guidelines and not static rules.
There is sufficient room for managerial discretion i.e. they can be modified as per the requirements of the situation.
Modification & improvement is a continuous phenomenon in case of principles of management.

3.  Principles of Management have a Cause & Effect Relationship
Principles of management indicate cause and effect relationship between related variables.
They indicate what will be the consequence or result of certain actions. Therefore, if one is known, the other can be traced. 

4. Principles of Management - Aims at Influencing Human Behavior
Human behavior is complex and unpredictable.
Management principles are directed towards regulating human behavior so that people can give their best to the organization.
Management is concerned with integrating efforts and harmonizing them towards a goal.
But in certain situations even these principles fail to understand human behavior.

5. Principles of Management are of Equal Importance
a . All management principles are equally important.
b.  No particular principle has greater importance than the other.
C. They are all required together for the achievement of organizational goals.


Which technique is used by Taylor for distinguishing efficient and inefficient workers?

The technique used by Taylor for distinguishing efficient and inefficient workers was Differential Piece Wage System. Under this technique, wages are decided according to a set standard. The workers who perform better than the set standards get higher wages than the workers who perform below the standards.


Answer the following question.
State any Ten Fayol's principles of management.

Principles of Management by Henri Fayol :- 
1] Division of Work
Dividing work among the workforce helps improve the quality of the overall product. Henri Fayol said that specialization in work increases the productivity and improves efficiency. Division of labour also leads to the specialization, accuracy, and speed of the workers. This principle is applicable both in managerial as well as technical work.

2] Authority and Responsibility
These are the two key things in management. They work hand in hand. While authority enables the management to delegate work, responsibility makes them accountable for any work done under their leadership.
Henri Fayol said that the power of authority accompanying responsibility gives the management the right to order subordinates along with a duty to be liable for acts of their subordinates.

3] Discipline
Nothing good was ever achieved without discipline. The third principle propagated by Henri Fayol was discipline. It is one of the core values in any system. Good behavior and civilized interactions make the management work smoothly and efficiently. Good conduct by employees also helps them smoothly progress in their careers.

4] Unity of Command
It basically means following a chain of command. A person should ideally answer to just one boss. If an employee is given work from more than one boss, there arises a conflict of interest. This can lead to confusion among the employees and hard to pin accountability. Thus, it is very crucial to follow unity o command.

5] Unity of Direction
For any corporate to prosper, there must be a unified goal. This principle is crucial as it incorporates the idea of a workforce working a singular direction with a unified aim. The responsibility of planning falls on the manager and he also must monitor the progress towards said goal.

6] Subordination of Individual Interest
The standard rule for any organization is the work on the collective interest of the organization as a whole rather than personal interest of an individual. This principle states that the interest of an individual will. Be subordinate to the objectives of the organization. This applies to the entire chain of command in the organization.

7] Remuneration
We all love an appreciation for our efforts. Remuneration in an organization play as a motivational force that keeps the employees fuelled to do well. This remuneration should be in tandem with the efforts that they put in. Remuneration may be monetary or non-monetary. At the end, the employee must feel that he was appropriately rewarded for his efforts.

8] Centralisation
Depending on the size of the organization, it is important that the power is centralized to an extent that the decision making is judicious at all levels and not arbitrary. This will also depend on the size of the organization. Henri Fayol said that there must be a balance in the hierarchy and division of power.

9] Scalar Chain
Henri Fayol talks about a clear line of hierarchy from the top rung to the lowest. So that every employee knows who is their immediate senior in the times of conflict or crisis. But also the employee must be able to contact any person in the hierarchy without hesitation during a time of crisis.

10] Order
There must be a proper defined order maintained at the work premises so that it makes for a conducive work environment. The right environment in the place of work will boost productivity.


Answer the following question in $$10$$ to $$12$$ sentences.
Explain any four nature of principles of management.

The following points bring out the nature of principles of management:

(1) Universal Applicability:

Universality refers to that truth which is equally applicable in all spheres (both business and non-business). The principles of management are also universal in nature.

All business (industrial units, etc.) and non-business organisations (educational institutions, government offices, playgrounds, agricultural farms, army, clubs and other social organisations), in order to achieve their objectives have to apply more or less the same principles.
 
(2) General Guidelines:

The principles of management are not definite like the principles of physics and chemistry. The principles of physics and chemistry are very clear and definite, and their outcomes can be predicted. The principles of management, on the other hand, are of the nature of general guidelines, and they cannot be applied strictly.

(3) Formed by Practice and Experimentation:

Principles of management are the results of various problems faced by the professional people. First of all problems appeared and then through careful research work solutions were found. Thus, we recognise the solutions, found with the help of practice and experience, as principles of management.

For example, the principle of ‘Unity of Command’ must have emerged when two groups of people must have been compared wherein the first group of people had one boss while the second group of people had two bosses. Undoubtedly, the first group of people must have performed better.

(4) Flexibility:

The principles of management as they exist today are not in the form of final truths. As and when political, economic and social changes take place, new kinds of problems arise. Old principles are altered and new principles are propounded. Therefore, the principles of management are dynamic in nature and cannot be called stagnant or fixed. 


State the role of 'route clerk' in functional foremanship.

In functional foremanship, the route clerk is responsible for elaborating the optimum route of production to the workforce of an organisation. He reports his performance directly to the planning in-charge.


How is the Principle of Unity of Command useful to management? Explain briefly.

The principle of Unity of Command implies that each subordinate should have one and only one boss. Orders and instructions should come from only one head. This helps the organization in the following manner:-
(i) Authority responsibility relationship is clearly defined. 
(ii) Subordinates are known for whom they are accountable. 
(iii) Discipline and order are maintained.


Answer the following question in a word or sentence.
Who is known as the father of scientific management?

The founding father of scientific management theory is Frederick W. Taylor (1856-1915). He was an American inventor and engineer. His two most important works were Shop Management (1903) and The Principles of Scientific Management (1911).


Explain the following principles of general management :
(a) Division of Work;
(b) Authority and Responsibility; and 
(c) Discipline.

(a) Division of Work: According to this principle, work should be divided into small specialised tasks. Each task should be performed by a specialist or trained employee. Division of work leads to specialization. 
For example, if one person is skilled in computer programming and continues to do that for over a period of time, his continuity of computerized work makes him a specialist in that job and consequently improves his performance.


(b) Authority and Responsibility: Authority is a right to give order and power to exert obedience. Responsibility implies the obligation to perform the work in the manner desired and directed. Authority and responsibility must go by side. There should be parity between authority and responsibility. Authority without responsibility leads to irresponsible behaviour while responsibility without authority makes a person ineffective.

(c) Discipline: Discipline is obedience, application, and outward mark of respect. It means obedience to the rules of the organisation on the part of both superiors and subordinates. Discipline is necessary for the smooth running of the organisation. According to Fayol, ‘Discipline requires good superiors at all levels, clear and fair agreement and judicious application of penalties’. Discipline does not mean only rules and regulations but it also means development of commitment on the part of employees towards organisation as well as towards each other.


Explain the principle of ‘Gang Plank’.

Scalar chain refers to the chain of superiors ranging from the ultimate authority to the lowest level in the organization. It should be short-circuited and not carried to the extent it proves detrimental to the organization. This concept is known as Gang-Plank.


Explain the principle of Unity of direction.

All the units of an organization should be moving towards the same objectives through coordinated and focused efforts. Each group of activities having the same objectives must have one head and one plan. This ensures unity of action and coordination.


Explain the principle of Equity.

Good sense and experience are needed to ensure fairness to all employees, who should be treated as fairly as possible, according to Fayol. The principle of equity emphasizes kindness and justice in the behavior of managers towards workers. This will ensure loyalty and devotion. Fall does not rule out the use of force sometimes.


Explain the principle of Esprit de corps.

Management should promote a team spirit of unity and harmony among employees, according to Fayol. Management should promote teamwork, especially in large organizations otherwise, objectives would be difficult to accomplish. It will also result in a loss of coordination. A manager should replace 'I' with 'We' in all his conversations with workers to foster team spirit. This will give rise to the spirit of mutual trust and belongingness among team members. It will also minimize the need for using penalties.


Explain the principle of Discipline.

Discipline is defined as obedience towards organizational rules and employment agreements that are necessary for the working of the organization. According to Fayol, discipline requires good superiors at all levels, clear and fair agreements, and judicious application of penalties.


Explain the principle of Order.

According to Fayol, People and materials must be in suitable places at the appropriate time for maximum efficiency. The principle of the order states that a place should be fixed for everything and everyone and everything and everyone should be in its place. Essentially it means orderliness. If there is a fixed place for everything and it is present there, then there will be no hindrance in the activities of business/ factory. This will lead to increased productivity and efficiency.


Explain the principle of Centralisation and Decentralisation.

The concentration of decision-making authority is called centralization whereas its dispersal amongst a group is known as decentralization. According to Fayol, there is a need to balance subordinate involvement through decentralization with managers' retention of final authority through centralization.


Explain the principle of Authority & Responsibility.

According to Fayol, Authority is the right to give orders and obtain obedience, and responsibility is the corollary of authority. The two types of authority are official authority, which is the authority to command, and personal authority which is the authority of the individual manager.


Explain the principle of division of work.

As the name suggests, in this principle, the work is divided into small tasks/ jobs. A trained and competent specialist is required to perform each job. Thus, division of work leads to specialisation. According to Fayol, division of work intends to produce more and better work for the same effort. Specialisation is the most efficient way to use human effort.


Explain the principle of Initiative.

Workers should be encouraged to develop and carry out their plans for improvements according to Fayol. Initiative means taking the first step with self-motivation. It is thinking out and executing the plan. It is one of the traits of an intelligent person. The initiative should be encouraged. 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.


Explain Standardisation.

Standardization refers to the process of setting standards for every business activity; it can be standardization of process, raw material, time, product, machinery, methods, or working conditions. These standards are the benchmarks, which must be adhered to during production.


Explain the principle of Remuneration of personnel.

The overall pay and compensation should be fair to both employees and the organization. The employees should be paid fair wages to provide them at least a reasonable standard of living. At the same time, it should be within the paying capacity of the company. In other words, remuneration should be just and equitable. This will ensure a congenial atmosphere and good relations between workers and management. Consequently, the working of the company would be smooth.


Explain the principle of Cooperation, Not Individualism.

Cooperation, Not Individualism: There should be complete cooperation between the labor and the management instead of individualism. This principle is an extension of the principle of Harmony, not discord. Competition should be replaced by cooperation. Both should realize that they need each other.


Explain the principle of Stability of tenure of personnel.

Employee turnover should be minimized to maintain organizational efficiency, according to Fayol. Personnel should be selected and appointed after the due and rigorous procedure. But once appointed, they should be able to retain their post/ position for a minimum fixed tenure. They should have a stability of tenure.


Explain the principle of Development of Each and Every Person to His or Her Greatest Efficiency and Prosperity.

Industrial efficiency depends to a large extent on personnel competencies. As such, scientific management also stood for worker development. Worker training is essential to learn the best method developed as a consequence of the scientific approach.


Explain Simpliflication of Work.

Simplification aims at eliminating superfluous varieties, sizes, and dimensions while standardization implies devising new varieties instead of the existing ones. Simplification aims at eliminating unnecessary diversity of products. It results in savings in the cost of labor, machines, and tools. It implies reduced inventories, fuller utilization of equipment, and increasing turnover.


Explain Time Study.

Time Study determines the standard time taken to perform a well-defined job. Time measuring devices are used for each element of the task. The standard time is fixed for the whole of the task by taking several readings. The method of time study will depend upon the volume and frequency of the task, the cycle time of the operation, and time measurement costs.


Explain Motion Study.

Motion study refers to the study of movements like lifting, putting objects, sitting and changing positions, etc., which are undertaken while doing a typical job. Unnecessary movements are sought to be eliminated so that it takes less time to complete the job efficiently.


Explain the principle of Unity of Command.

According to Fayol, there should be one and only one boss for every individual employee. If an employee gets orders from two superiors at the same time the principle of unity of command is violated. The principle of unity of command states that each participant in a formal organization should receive orders from and be responsible to only one superior. Fayol gave a lot of importance to this principle. He felt that if this principle is violated authority is undermined, discipline is in jeopardy, order disturbed and stability threatened.


Explain the principle of Harmony, Not Discord.

According to Taylor, there should not be any conflict between the managers and the workers. He emphasized that there should be complete harmony between the managers and the workers. Both should realize that each of them is important to achieve the objectives of the organization.


Write short answer of the following.
State Henry Fayol's 'any five' principles of management.

1. Principle of division of work - Dividing work among the workforce helps improve the quality of the overall product.
2. Principle of Authority and Responsibility - There should be parity between authority and responsibility. Authority and responsibility work hand in hand.  
3. Principle of Unity of Command - It basically means following a chain of command. A person should ideally answer to just one boss. 
4. Principle of Unity of Direction - This principle is crucial as it incorporates the idea of a workforce working a singular direction with a unified aim. 
5. Principle of Scalar Chain - Henri Fayol talks about a clear line of hierarchy from the top to the lowest. 


Class 12 Commerce Business Studies Extra Questions