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Published on: 30/09/2019
Principles of Management
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Questions + Answers key
Take MCQ Business Studies Test

1.
Explain four techniques which facilitate application of the principle of scientific management.
2.
Why does the principle of unity of command not hold good in the case of functional foremanship?
3.
On the basis of comparative study of Taylor and Fayol, state some of its similarities and dissimilarities.
4.
State three techniques that have been developed through research and refinement of management principles are:
5.
Are the principles of management given by Henry Fayol and F.W. Taylor are complimentary or supplementary to each other. Justify your answer.
6.
Explain the importance of managerial principles.
7.
Explain any functional foremanship techniques of Scientific Management with diagram.
8.
Explain any techniques of Taylor's scientific management.
9.
Explain Fayol's principle of 'equity' and 'order' with examples.
1.
1) Time study : It determines the standard time taken to perform a well defined job the objective of time study is to determine the no of workers to be employed, frame suitable incentive schemes and determine labour costs.
2) Method study : The objective of method study is to find out one best way of doing the job.
Example : To manufacture shoes, the methods could be manual or mechanical but the cost of labour & capital to manufacture shoes may vary. The management has to decide about the method to be used t manufacture shoes.
3) Motion study : Motion study refers to the study of movements like lifting, putting objects, sitting etc, which are undertaken while doing a typical job.
Example : Suppose a worker is engaged in a motor mechanic job. The expert in motion study observe how he moves various parts of his body, how many times he has to pick up and keep the tools back.
4) Fatigue study : Fatigue study seeks to determine the amount & frequency of rest intervals in completing a task.
Example : Suppose an employee is working in a plant where three shifts are in operation. If he continues to work in the second & third shift, he may feel totally exhausted and will not continue to work any longer.
2.
According to the principle of unity of command, an employee should receive orders / instruction from one & only one boss or superior On the other hand, the principle of functional foremanship insists on orders and instructions from eight specialists.
So, if an organization has appointed eight functional specialists, then it is not possible to allow only one superior to give orders. Hence, the principle of unity of command does not hold good in the case of functional foremanship.
3.
(i) Similarities
(a) Both stressed on good industrial relations.
(b) Both of them have contributed immensely to the knowledge of management and their contributions are complementary to each other.
(c) Both stressed on achievement of objectives.
(d) Both emphasised on division of labour and specialisation.
(ii) Dissimilarities
(a) Fayol's principles are universally applicable, Whereas Taylor's contribution is more related to shop floor (factory) area.
(b) Fayol's principles are based on personal experience, Whereas Taylor's formulated its principles and techniques on the basis of observations and experimentation.
4.
(i) Operation Research
(ii) Cost Accounting
(iii) 'Kanban' and Kaizen'
5.
The contribution of Henry Fayol and F.W. Taylor to the field of management is explained in following table.
Taylor vs Fayol
| Basis | Henri Fayol | F.W. Taylor |
| 1. Perspective | Top level of management | Shop floor level of a factory |
| 2. Basis of formation | personal experience | Observations and experimentation |
| 3. Focus | Improving overall administration | Increasing productivity |
| 4. Unity of command | Fayol insisted on improving overall administration by developing such a unity of command and direction. | Taylor did not feel that it is important a under functional foremanship a worker received orders from eight specialists. |
| 5. Applicablility | Applicable Universally | Applicable to specialized situation |
| 6. Personlaity | Practitioner | Scientist |
| 7. Expression | General Theory ofadministration | Scientific Management |
Taylor’s principles of scientific management and Fayol’s principles of management are mutually complementary.
Reasons for this view are given below :-
1. The aim of the principles of both Taylor and Fayol is the same, i.e., to maximize efficiency of work and performance.
2. Both sets of principles suggest mutual cooperation between employer and employees.
3. Taylor and Fayol both advocate division of work and responsibility.
4. Both of them have contributed immensely to the knowledge of management, which has formed a basis for further practice by managers.
6.
Significance of Management Principles
Provide useful insights to manager :- Principle of managers provides useful insights to managerial behaviour and influence managerial practices. These principles will add to their knowledge ability and understanding of managerial situations and circumstances.
Managers may apply inside principles to fulfill their task and responsibility. They enable the managers to learn from past mistakes and save time by solving recurring problems fast. So, management principles increase management efficiency.
Optimum Utilisation of Resources :- Management principles aim at optimum utilization of human and physical resources for the attainment of organizational goals. By optimum utilization, we learn that resources should be put to use in such a manner that they should give maximum benefit with minimum cost.
e.g:- Science not rule of thumb suggest-every task should be done with minimum required efforts and energy.
Scientific Decisions
Management principles enable the managers to approach various problems systematically & scientifically & keep them in taking scientific decisions to meet changing conditions. Management decisions taken on the basis of principles are free from bias and prejudice because they emphasize logic rather than blind faith.
Meeting Changing Environment requirements :- Management principles train the managers to adopt the changes in technology in right direction and at right level in the organization. Thus, although the management principles are general guidelines, yet they are modified by the manager to meet changing requirements of the environment.
Fulfilling social Responsibility :- Management principles not only act as guidelines for achieving organisational objectives but this principle also guide the managers to perform social responsibility.
E.g:- principles of “Fair Remuneration’ insists on adequate salary to employee.
7.
Techniques of Scientific Management
Functional foremanship :- It is an extension of the principle of division of work on specialization to the shop floor. Each worker will have to take order from eight foremen in the related process of function of production.
Basic Aim of Functional Foremanship :-To separate planning functions from executive (operative) functions. Under the factory manager there was a planning in change and a production incharge.
1. Under planning incharge, four personnel, namely, instruction card clerk, route clerk, time clerk and cost clerk and disciplinarian worked. These four personnel would draft instructors for the workers specify the route of production prepare time and cost sheet and ensure discipline, respectively.
2. Under production incharge four personnel who would work were speed boss, gang boss, repair boss and inspector. They were responsible for timely and accurate completion of job, keeping machines and tools etc., ready for operation by workers, ensure proper working condition of machines and tools and chick the quality of work.
3. Foremen should have intelligence, education, tact, judgment, special knowledge, energy, honesty and good health all these qualities cannot always be found in a single foreman. So, Taylor purposed eight specialists.
8.
(i) Functional Foremanship
It is extension of principle of division of labour, resulting in specialisation. According to Taylor, a single worker or supervisor cannot be expected to be an expert in all aspects. Thus, he advocated the appointment of eight foremen to guide workers, under planning and production departments.
Under the planning incharge, there are four personnel:
(i) Route clerk
He is responsible to specify the route of production
(ii) Instruction card clerk
He is responsible to give instructions to the workers.
(ii) Standardisation and Simplification of work
Standardisation is the process of setting standards for every business activity, process, raw materials, time, machinery and methods, to achieve efficiency.
Standardisation of product implies that the size, design, quality, shape, etc of the product should meet the requirements and tastes of consumers.
The objective of standardisation are:
(i) To maintain quality standards.
(ii) To set up performance standards of men and machines.
(iii) To provide interchangeability of manufactured parts and products.
(iv) To achieve target production in pre-determined time. simplification means eliminating superfluous sizes, varieties and dimensions. Its aim is to:
(a) Eliminate unnecessary diversity of products and thereby reduce costs.
(b) Help in achieving economy in the use of required machines and tools.
9.
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 Sales Department a cabin is alloted, for typist a single table and for a foreman a proper area should be alloted 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 and leads to inefficiency.
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