Business Studies | Unit-2 | Principles of Management | Class-12

Class-12 Business Studies Unit-2 : Principles of Management 1. Explain the Principles Scientific Management? Answer:  Taylor noted that the ...

Class-12

Business Studies

Unit-2 : Principles of Management

1. Explain the Principles Scientific Management?

Answer: Taylor noted that the rule of thumb should not be used by management. Management, on the other hand, must adapt tubes and processes to the needs and types of work. There must be clear and well recognized procedures and vision for the completion of work. Taylor has given the following principles as the part of scientific management:

• Science, not rule of thumb
• Harmony, not discord
• Co-operation. not individualism
• Development of each person to his maximum
• efficiency and prosperity
• Maximum output In place of restricted output
• Equal division of responsibility between management and workers
• Mental revolution of both management and works 

• Science, not rule of thumb: - According to Taylor management is a science it is not the rule of thumb. Before making any decision or taking any action, scientific management emphasizes the need for scientific research and analysis of data It entails observing and analyzing each item of work, establishing a work standard., and ensuring that work is completed to the highest possible standard,
• Harmony, not discord: - Harmony focuses on the unity of action while discord means difference in approach. To preserve action unity, there must be complete harmony between management and employees. To achieve joint goals, management and workers must have a close relationship.
• Co-operation, not individualism: - An organization is established to achieve its objectives such as earning profit and wealth. For the achievement of organizational objectives, both management and workers are involved in many activities like planning, directing, production, distribution etc. The achievement of organizational objectives should fulfill the individual objectives of employees.
• Development of each person to his maximum efficiency and prosperity: - The workers should be selected on the basis of organizational requirement. The enhancement of employee working efficiency aids in the efficient utilization of physical resources. These steps include scientific training, seminars, workshops, interaction, continuing education and other activities aimed at improving efficiency.
• Maximum output in place of restricted output: - Taylor has given emphasis on the maximum output instead of limited output. It is essential to produce maximum output on the basis of revel of capacity. Maximum production ensures more wages to workers because of piece rate system of wage payment. It also ensures maximum profit to owners because more volume of production minimizes cost per unit of output.
• Equal division of responsibility between management and workers: - This principle has specified the responsibilities of management and workers. Managers are involved in executive tasks such as goal setting, planning, policy formulation, and the establishment of working procedures and systems. Workers are also involved in the implementation of the strategy in practice.
• Mental revolution of both management and works: - Taylor's principle of scientific management emphasizes that there must be mental revolution on part of both management and workers. Managers should maintain cooperative relation with subordinates whereas subordinates should follow the instruction of managers.

2. Explain the Principle of Administrative Management?

Answer: Henry Concept Fayol 4841 — 1925 was a French industrialist. He joined French mining Company in 1860 as an engineer and later became managing director in 1888. In 1916, he published a book known as "Administration Industrially Generate".

• Division of work
• Discipline
• Unity of command
• Authority and responsibility
• Unity of direction
• Subordination of individual interest to general interest
• Remuneration of personnel
• Centralization
• Scalar chain
• Order
• Equity
• Stability of tenure
• Initiative
• Esprit De Crops

• Division of work: Division of works is concerned with distribution of right work to the right person. Following the division of labor, each task should be assigned to an efficient and accountable individual. It means that the appropriate work should be assigned to the appropriate person.  
• Discipline:  Discipline is concerned with abdicate to the supervision and to follow the rules, regulations and procedures. Every organization involves specified rules, regulation, working procedures and systems. This principle is applicable both to managers and subordinates.
• Unity of command: The unity of command principle emphasizes that a subordinate can only receive orders and instructions from one superior at a time. It means that a subordinate should report to just one superior at a time. When there is unity of command, a single superior can easily get explanation from the subordinate about the completion of given responsibility.
• Authority and responsibility: - Authority is the power and right inherent in a managerial position through which a manager commands subordinates to work. Similarly, responsibility is the obligation to accomplish assigned jobs. This principle of Fayol emphasizes that there must be balance between authority and responsibility.
• Unity of direction: There should be one head and one plan for a group of activities having common objectives. It makes the manager more responsible for directing and coordinating the activities of subordinates.
• Subordination of individual interest to general interest: - Individual interest refers to the attainment of an employee's goals, whereas general interest refers to the achievement of corporate goals. The first emphasis should be given to organizational objectives rather than individual objectives.
• Remuneration of personnel: - Remuneration to be paid to the employees on the basis of their skill, offices and resources of the organization. According to Fayol, employee remuneration should be such that it is acceptable to both management and employees.
• Centralization: - Centralization mans to reserve decision making authority at the top level of management. Decentralization, on the other hand, entails delegating decision-making authority to lower-level administrators. According to Henry Fayol, depending on the nature of tine job and the size of the organization, there must be provisions for centralization and decentralization.
• Scalar chain: - There must be unbroken of chain of relation ranking from top level to first line management. This principle is significant for systematic and orderly communication of information from the top level to the level and vice versa.
• Order: - All the resources should be arranged in systematic way. Material order and social order are the two sorts of order identified by Fayol. Material order is concerned with the right location and quantity of materials, machinery, and other physical resources. Social order is also concerned with matching the right person to the proper position.
• Equity: - There must be kindness and justice to all the members of the organization. This is the only principle which would make all the workers loyal and devoted to the organization.
• Stability of tenure: -This principle concentrates on job security and long term performance of employees in the organization. Employees who have a sense of job stability are more likely to accomplish their jobs with confidence and effort. It aids in the growth of employee working efficiency.
• Initiative: - Preference should be given to subordinates to think out a plan and its implementation. This initiative principle of management provides the sense of self-motivation among the workers.
• Esprit De Crops: - Esprit de crops is the proverb that union is strength. It's the strength that comes from a group or team's spirit. It is only possible if the organization's employees work together in harmony and understand each other.

3. Explain the Principle of Bureaucracy Theory:-

Answer: The principle of bureaucracy was proposed by Max Weber and is considered to be the most effective management principle. This idea emphasizes a clear line of authority from the highest level to the lowest level. The following are the principles of bureaucracy theory of management:

• Formal rules and procedures
• Functional specialization
• Well defined hierarchy of authority
• Supervision by a higher authority
• Technical competence for employment
• All Decision should be recorded
• Interpersonal Relation
• Formal rules and procedures: - In every organization, there must be the system and procedures for the completion of defined work. All the members have to follow these rules and procedures in every stage of their activities. No one from top level to subordinates level can breach the rules of the organization.
• Functional specialization: - Tasks should be assigned to employees according to their functional specialization. In other words, the major focus of this principle is the matching of the right person to the right job. Division of labour on the basis of skill, knowledge, efficiency and experience is helpful to develop working efficiency of the workers.
• Well defined hierarchy of authority: - It emphases scalar chain of authority from level to subordinate level. Maintaining unity in direction and effort requires a well-defined hierarchy of power from the top to the lowest levels. This idea promotes labor division, the development of a sense of responsibility among employees, and the uniformity of organizational performance,
• Supervision by a higher authority: - Depending upon nature and size„ an organization is divided into different levels of management. The higher level management delegates authority and responsibility to subordinate levels. From time to time, higher level authority has to supervise the subordinates to know about their achievement and problems.
• Technical competence for employment: - This is one of the important features of bureaucracy theory. Employees' technical proficiency is taken into account during their recruitment, selection, appointment and placement. Employees' efficiency, knowledge, skill, and experience are all taken into account when they are promoted. This is necessary to reduce resource waste and establish close relationships among all of the organization's employees.
• All Decision should be recorded: - Management takes various types of decision in different situations. Different acts passed and actions are taken in various times. Those acts, action, and decisions should be recorded in a separate book for future reference. It is helpful in future for taking valuable decisions.
• Interpersonal Relation: - In organization, interpersonal relation among employees should be maintained on the basis of rules and regulation. Personal relation is not taken account. Interpersonal relations are based on positions and not on personalities.