PRINCIPLES OF MANAGEMENT
Q.1 What is a Management Principle?
A.1 A managerial principle is a broad and general guideline for decision-making and behaviour.
Q.2 ‘Principles help managers to take decisions while performing these functions.’ In the light of the above statement discuss the nature/features/characteristics of Principles of Management.
The following points highlight the nature/features/characteristics of Principles Of Management-
1) Universal applicability: The principles of management are intended to apply to all types of organisations, business as well as non-business, small as well large, public sector as well as private sector, manufacturing as well as the services sectors. However, the extent of their applicability would vary with the nature of the organisation, business activity, scale of operations and the like.
2) General guidelines: The principles are guidelines to action but do not provide readymade, straitjacket solutions to all managerial problems. This is so because real business situations are very complex and dynamic and are a result of many factors.
3) Formed by practice and experimentation: The principles of management are formed by experience and collective wisdom of managers as well as experimentation.
4) Flexibile: The principles of management are not rigid prescriptions, which have to be followed absolutely. They are flexible and can be modified by the manager when the situation so demands.
5) Mainly behavioural: Management principles aim at influencing behaviour of human beings.
These principles enable a better understanding of the relationship between human and material resources in accomplishing organisational purposes.
6) Cause and effect relationships: The principles of management are intended to establish relationship between cause and effect so that they can be used in similar situations in a large number of cases.
The principles of management assist managers in establishing these relationships to some extent and are therefore useful.
7) Contingent: The application of principles of management is contingent or dependent upon the prevailing situation at a particular point of time. The application of principles has to be changed as per requirements.
Q.3 Describe the significance/importance/role/benefits/merits of the Principles Of Management.
The following points highlight the significance/importance/role/benefits/merits of the Principles Of Management-
1) Providing managers with useful insights into reality: Adherence to these principles will add to their knowledge, ability and understanding of managerial situations and circumstances.
It will also enable managers to learn from past mistakes and conserve time by solving recurring problems quickly. such management principles increase managerial efficiency.
2) Optimum utilisation of resources and effective administration: Human and material resourcesavailable with the company are limited. Hence they should be put to use in such a manner that they should give maximum benefit with minimum cost.
These Principles equip the managers to foresee the cause and effect relationships of their decisions and actions. As such the wastages associated with a trial-and-error approach can
be overcome. Effective administration necessitates impersonalisation of managerial conduct so that managerial power is used with due discretion.
3) Scientific decisions: Decisions must be based on facts, thoughtful and justifiable in terms of the intended purposes. They must be timely, realistic and subject to measurement and evaluation.
Management principles emphasise logic rather than blind faith,and such decisions taken are free from bias and prejudice. They are based on the objective assessment of the situation.
4) Meeting changing enviornment requirements: Although the principles are in the nature of general guidelines but they are modified and as such help managers to meet changing requirements of the environment.
5) Fulfilling social responsibility: Value to the customer, care for the environment, dealings with business associates would all come under the purview of this principle.
6) Management training, education and research: Principles of management are at the core of management theory. As such these are used as a basis for management training, education and research.
Thus, we see that techniques like Operations Research (OR), cost accounting, ‘Just in Time’, ‘Kanban’ and ‘Kaizen’ have developed due to further research on these principles.
Q.4 Who is referred to as The Father of Scientific Management? Why?
1) Fredrick Winslow Taylor (March 20,1856 – March 21, 1915) was an American mechanical engineer who sought to improve industrial efficiency, is referred to as the father of scientific management.
2) He belonged to the era of the industrial revolution characterised by mass production. Hence he felt a need to follow an approach that was based on the method of science- defining a problem, developing alternative solutions, anticipating consequences, measuring progress and drawing conclusions.
3) He proposed scientific management as opposed to rule of thumb. He broke up human activity into small parts and found out how it could be done effectively, in less time and with increased productivity.
4) It implies conducting business activities according to standardised tools, methods and trained personnel in order to increase the output, improve its quality and reduce costs and wastes.
In the words of Taylor, “Scientific management means knowing exactly what you want men to do and seeing that they do it in the best and cheapest way”.
Q.5 Explain the principles of ‘Scientific Management’.
The following are the principles of ‘Scientific Management’-
1) Science not Rule of Thumb: Taylor believed that there was only one best method to maximize efficiency, which can be developed through study and analysis. The method so developed should substitute ‘Rule of Thumb’ throughout the organisation. Scientific method involved investigation of traditional methods through work-study, unifying the best practices and developing a standard method, which would be followed throughout the organisation. In the present context, the use of internet has brought about dramatic improvements in internal efficiencies and customer satisfaction.
2) Harmony, Not Discord: He emphasised that there should be complete harmony between the management and workers. Both should realise that each one is important. To achieve this state, Taylor called for complete mental revolution on the part of both management and workers. It means that management and workers should transform their thinking. Management should share the gains of the company, if any, with the workers. At the same time workers should work hard and be willing to embrace change for the good of the company. Japanese work culture is a classic example of such a situation. In Japanese companies, paternalistic style of management is in practice. There is complete openness between the management and workers.
3) Cooperation, Not Individualism: There should be complete cooperation between the labour and the management instead of individualism. This principle is an extension of principle of ‘Harmony not discord’.
Competition should be replaced by cooperation. Both should realise that they need each other. According to Taylor, there should be an almost equal division of work and responsibility between workers and management. All the day long the management should work almost side by side with the workers helping, encouraging and smoothing the way for them.
4) Development of Each and Every Person to His or Her Greatest Efficiency and Prosperity: Taylor was of the view that the concern for efficiency could be built in right from the process of employee selection. Each person should be scientifically selected. Then work assigned should suit her/his physical, mental and intellectual capabilities.
To increase efficiency, they should be given the required training. Efficient employees would produce more and earn more. This will ensure their greatest efficiency and prosperity for both company and workers.
Please click on below link to download CBSE Class 12 Business Studies Principles of Management Worksheet Set C
